In the other country, yes, but not the US if you renounce citizenship. (Only one other country taxes its citizens overseas anyway; Trump pledged to fix that, too, but we know how far to trust that...)
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I wonder what the idea was to fix it. My understanding is that for the income tax to be constitutional, it has to be on the basis of citizenship. If it were based on residence it would have to be a state tax (and indeed, there are state income taxes that depend on whether you live there).
may 24, 2025, 2:36 pm • 0 0 • view
I don't think it needs to apply outside the US - indeed most laws don't. "Without apportionment among the states" and equal protection would mean it couldn't be different between NY and TX, but overseas taxes are already different from domestic with the non-resident deduction.
may 24, 2025, 2:50 pm • 1 0 • view
I suppose, and also of course depending on the tax treaty in effect. Still, imposing a tax on US citizens but only if they’re in the states opens the argument that they’re in _some_ state and that the government is therefore interfering in those individual states, no? (I’m alert to the …
may 24, 2025, 2:57 pm • 1 0 • view
AIUI as long as it's uniform between states it's OK - so a special "red state tax deduction" violates the 14th, but the existing overseas deduction could just be made unlimited, and the US effectively joins the rest of the world outside Eritrea.
may 24, 2025, 3:00 pm • 2 0 • view
Well, your mouth to Trump’s ears, because there are a lot of Canadians who had the misfortune of being born on the wrong side of the border, who have never lived there, can’t vote because they’ve never actually had a US address, and yet have to file the most convoluted returns each year.
may 24, 2025, 3:03 pm • 1 0 • view
I grew up with some in the UK too - I doubt Trump actually has any plan to fix it, but I hope someone does eventually. Keeping such a big inventive to renounce citizenship doesn't seem like a good idea to me, probably why only one other country does it!
may 24, 2025, 3:06 pm • 1 0 • view
It’s so costly and painful to renounce that it isn’t really an incentive anyway. Though now that the US has given up on being a stabilizer of the world economy that could change.
may 24, 2025, 4:40 pm • 0 0 • view
The costs can be dwarfed in some cases, like if you sell a house in the UK - and the US just cut the cost of renouncing too. Real barrier is just how likely you are to want to move back vs staying put.
may 24, 2025, 5:11 pm • 2 0 • view
… crowd that thinks the entire edifice of the USG is illegitimate and that it all ought to go back to a 19th c. basis of funding. I’ve heard one of them occupies a white house of some sort. )
may 24, 2025, 2:57 pm • 1 0 • view