Facebook Co-Founder Gives Up U.S. Citizenship

Re:Facebook Co-Founder Gives Up U.S. Citizenship by felipe on Friday May 11, 2012 @01:59PM (#3960443)

Your assumption on #2 is not correct. Americans living abroad get a tax credit (almost $100k currently), so in practice average-income US professionals living abroad are US tax-exempt. Above that, there are many rules designed to prevent double-taxation.

Also, US citizenship is not a "trap" in Eduardo's case. It was his choice to become an American citizen in the first place.

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Re:Facebook Co-Founder Gives Up U.S. Citizenship by hnwh on Friday May 11, 2012 @03:39PM (#3960950)

We're exempt on tax on "Earned Income" up until a certain level (and yes, there is a highly technical definition for the type of income that qualifies for this). As one of the other commenters mentioned, we still have to pay full on Social Security, Medicare, Self-Employment taxes

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Re:Facebook Co-Founder Gives Up U.S. Citizenship by _delirium on Friday May 11, 2012 @10:19PM (#3962449)

If you live in one of the 24 countries with a social-security totalization treaty (which is most of Europe, plus Japan and a few other countries), that's not true. I don't pay any U.S. payroll taxes as an American expatriate.

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