Re:Wealthy people are renouncing American citizenship
by HWR_14 on Saturday August 07, 2021 @03:30AM
(#28096582)
I don't want to get too political, but things were different before the 2017 tax law change. The main point, overseas Americans still have to pay US taxes, was true before then. But, pre-2017, they could deduct what they paid to the country they were residing in. This meant, in reality, the vast majority of expats did not have to pay US taxes.
It's quite possible that the Democrats will, if they modify the tax system, undo that change. That might be why investment firms hesitate to have you as a client. Although, unless you are using tax-advantaged accounts, it shouldn't be that much extra paperwork for them.
As for rich people gaming the system - I can imagine Bezos et al. would not mind living in the Caymans for a year while he sold all his stock to pay no taxes. If you can determine when you pay taxes, that's a huge benefit.
It's quite possible that the Democrats will, if they modify the tax system, undo that change. That might be why investment firms hesitate to have you as a client. Although, unless you are using tax-advantaged accounts, it shouldn't be that much extra paperwork for them.
As for rich people gaming the system - I can imagine Bezos et al. would not mind living in the Caymans for a year while he sold all his stock to pay no taxes. If you can determine when you pay taxes, that's a huge benefit.