My friend, Bard says....
Whether or not it is a good idea to tax expatriates is a complex question with no easy answer. There are both pros and cons to consider.
Pros of taxing expatriates:
It can generate revenue for the government, which can be used to fund public services and programs.
It can discourage people from renouncing their citizenship or residency to avoid paying taxes.
It can ensure that all citizens and residents contribute their fair share to the tax burden.
Cons of taxing expatriates:
It can discourage people from living and working abroad, which can harm the economy.
It can be difficult to enforce, as expatriates may be living and working in countries with which the home country does not have tax treaties.
It can be unfair to expatriates who are already paying taxes in the country where they live and work.
Ultimately, the decision of whether or not to tax expatriates is a political one. Each country must weigh the pros and cons and decide what is best for its own citizens and economy.
In the case of the United States, the government taxes its citizens and resident aliens worldwide, regardless of where they live or work. This is one of the few countries in the world that does so. The US government argues that this is necessary to ensure that all US citizens contribute their fair share to the tax burden, regardless of where they live. However, many US expats argue that this is unfair, as they are already paying taxes in the country where they live and work.
In recent years, there has been some discussion in the US Congress about repealing the expatriation tax, but no concrete action has been taken.
It is important to note that the tax rules for expatriates vary widely from country to country. Some countries, such as the United Kingdom and Australia, only tax expatriates on their income from domestic sources. Other countries, such as Germany and Japan, tax expatriates on their worldwide income for a certain number of years after they leave the country.
If you are considering becoming an expatriate, it is important to consult with a tax advisor to understand the tax rules of your home country and the country where you plan to live and work.