Donald Trump’s New Tax Promise: Eliminating Income Taxes for Americans Abroad

[blue manc]

1 hour ago, timendres said:

It is what we call an "empty promise", since the US and Thailand have a DTA.

For ten years, I never paid a dime in US taxes on income earned in Thailand.

I am sure there are some who would benefit, but the number would be small.

I thought the DTA rules were that you don't pay tax on earnings that have already been taxed by the US>

Surely this means that if you are not paying tax in US, then the income stream becomes taxable ?
 

[Thingamabob]

4 hours ago, Celsius said:

 

Indian, black or caucasian?

Ethic ?

[Chomper Higgot]

1 hour ago, Cameroni said:

 

The debt is a non-issue according to a large number of economists.

Increasing the debt to invest in infrastructure (Capital expenditure) makes sound economic sense.

 

Increasing the debt to cut taxes does not.

[proton]

10 hours ago, Chomper Higgot said:

He also promised to build a wall.

 

 

 

He would have finished it if not for congress dragging their feet releasing the funds. Luckily he will be able to start work on it again next year and stop illegals just walking in.

[Chomper Higgot]

It’s a very odd election promise to be making in the last month of the campaign.

 

It doesn’t bring in any votes from the expat voters who have already submitted their vote and it’s too late, in many states, to encourage expat citizens who have not already applied for their absentee ballot.

 

What’s even odder is, postal voting has been the subject of long standing attacks from Trump and not a means of voting favored by his citizen supporters.

 

Moreover, expat U.S. Citizens already enjoy a generous fixed amount tax allowance and there is lies a clue to why Trump might think this a good idea.

 

A zero tax rate for expatriate Americans would be a huge gift to those hyper wealthy Americans living overseas.

 

 

 

 

[Chomper Higgot]

10 minutes ago, proton said:

 

He would have finished it if not for congress dragging their feet releasing the funds. Luckily he will be able to start work on it again next year and stop illegals just walking in.

 

It’s always somebody else’s fault and of course, hope springs eternal.

 

As I have said many times, Trump would have been better focusing on Prison reform.

[Cameroni]

12 minutes ago, Chomper Higgot said:

Increasing the debt to invest in infrastructure (Capital expenditure) makes sound economic sense.

 

Increasing the debt to cut taxes does not.

 

What really matters about taxes and spending is "who" pays for them and who receives them.

 

"The near unanimity in public discourse about the evil of deficits might seem to suggest that economists are similarly unanimous. In fact, however, they disagree fundamentally about whether deficits matter, and, if so, then why."

 

The main distinction is that the federal government, with its power to raise taxes and print money, faces less default risk than would a household that regularly spent more than it took in. In addition, our debt is mainly internal: owed by American taxpayers to American bondholders (two groups that overlap).

https://press.uchicago.edu/Misc/Chicago/751120.html

 

There is, fundamentally, no economic issue with the US deficit, that we know of currently. The US is fantastically wealthy, more wealthy than God. The US could pass a tax and wipe out the deficit in a short time.

 

The US deficit only matters in terms of who pays for it, ie future generations, to enable current generations to spend. It has political significance, but in economic terms we do not know if it has any. We do not know for instance what savings rate is appropriate. Is deferring spending for consumption in the future desirable? These are questions we cannot answer.

[Elkski]

Happiness will be trump in my rearview mirror. 

[Cryingdick]

 

4 hours ago, Chomper Higgot said:

It’s a very odd election promise to be making in the last month of the campaign.

 

It doesn’t bring in any votes from the expat voters who have already submitted their vote and it’s too late, in many states, to encourage expat citizens who have not already applied for their absentee ballot.

 

What’s even odder is, postal voting has been the subject of long standing attacks from Trump and not a means of voting favored by his citizen supporters.

 

Moreover, expat U.S. Citizens already enjoy a generous fixed amount tax allowance and there is lies a clue to why Trump might think this a good idea.

 

A zero tax rate for expatriate Americans would be a huge gift to those hyper wealthy Americans living overseas.

 

 

 

 

 

You mean he might be doing it because it is the right thing to do? I know it wouldnt make sense to a Kamala supporter to offer anything unless there is something for your campaign to gain. 

 

 

[Chomper Higgot]

4 minutes ago, Cryingdick said:

 

 

You mean he might be doing it because it is the right thing to do? I know it wouldnt make sense to a Kamala supporter to offer anything unless there is something for your campaign to gain. 

 

 

No, I mean he might be doing it to help out the already hyper wealthy.

 

 

[Cryingdick]

3 minutes ago, Chomper Higgot said:

No, I mean he might be doing it to help out the already hyper wealthy.

 

 

 

So rather than focus on a large population of people that actually aren't that wealthy living abroad you cant stand the fact that a tiny handful of wealthy might benefit. 

[Cryingdick]

There are a lot of people living in places like Tokyo, Singapore, London etc. that make more than allowed to that would have immediate increases in the quality of their lives. Some poor sod making $150K in Tokyo which is okay before getting sacked twice can now go on vacations. Digital nomads would love it.

 

Chomper made me think that although it wont move the needle this election in the future as more people move abroad it might help down the road. It would basically encourage people who have thought of doing it toi take the leap. 

[Guitar God]

If  I pay taxes in Thailand I just enter the amount on line 8 of IRS form 1116 and deduct that amount from my U.S. taxes owed.
There's no double taxation.
He's making a campaign promise to fix a problem that doesn't even exist.
Expats in Thighland aren't interested in what you're peddling DonOld.

[Chomper Higgot]

8 hours ago, Cryingdick said:

 

So rather than focus on a large population of people that actually aren't that wealthy living abroad you cant stand the fact that a tiny handful of wealthy might benefit. 

That’s a rather twisted interpretation of my comments.

 

My argument is precisely that this suggested tax giveaway is targeted in favor of the hyper wealthy.

 

The vast majority of Americans expats already have a generous zero tax bracket.

 

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion#:~:text=However%2C you may qualify to,deduct certain foreign housing amounts.

[Chomper Higgot]

7 hours ago, Cryingdick said:

There are a lot of people living in places like Tokyo, Singapore, London etc. that make more than allowed to that would have immediate increases in the quality of their lives. Some poor sod making $150K in Tokyo which is okay before getting sacked twice can now go on vacations. Digital nomads would love it.

 

Chomper made me think that although it wont move the needle this election in the future as more people move abroad it might help down the road. It would basically encourage people who have thought of doing it toi take the leap. 

There is no prohibition stating how much American expats are ‘allowed’ to earn.

 

Your poor expat earning $150,000 already has a $120,000 tax free allowance, so might have to pay tax on 1/5th of their income, assuming they do not take advantage of numerous other avail tax reductions, such as health savings plans etc.

 

 

[Luuk Chaai]

19 hours ago, Celsius said:

 

Indian, black or caucasian?

don't forget the recent new accent   start at 2:14 on the video  with Stephan Colbert

 

[nauseus]

20 hours ago, JCauto said:

For once he's showing some sense and planning for the future. Like always however, it's for his own future, nothing to do with anyone else. Once he's been tossed into the dustbin of history after he gets his butt kicked in the election by an ethic woman, he's surely heading for Russia or anywhere other than America, a place he clearly despises as he says in practically every location he goes. So he's greasing the skids so that he doesn't get taxed in America from whichever dictatorship offers him sanctuary. 

 

By the way, where are those budget hawks that our RW friends inevitably turn into once the Democrats win the election? Aren't you concerned about the deficit all this tax-cutting will result in? You do know that Trump raised the deficit by over $4 Trillion when he was President, right? 

 

Mostly due to Covid. Biden beat that in just 3 years.

[pomchop]

On 10/11/2024 at 5:36 AM, Cryingdick said:

His other new one is making interest on cars tax deductible. That would be huge for the auto industry and almost countless small businesses.

a chicken in every pot...talk is cheap as the orange one proves everyday...did we get that check from mexico for the wall yet?...maybe it is lost in the mail along with the "concept of a plan" to provide better health care while he saved ObamaCare?  WHAT you mean orange man LOST the 2020 election?  

[john donson]

thank god thailand will tax you instead, right...

[simple1]

On 10/11/2024 at 8:36 AM, Cryingdick said:

His other new one is making interest on cars tax deductible. That would be huge for the auto industry and almost countless small businesses.

How is trump going to pay for the alleged tax deductions - has any of the plans been costed or is it blue sky stuff?"

[theshu25]

6 minutes ago, simple1 said:

How is trump going to pay for the alleged tax deductions - has any of the plans been costed or is it blue sky stuff?"

He as usual has a concept of a plan. The village idiot cannot even tie up his own shoe laces,so what show would he have of a plan.

[billd766]

17 hours ago, Elkski said:

Happiness will be trump in my rearview mirror. 

Shrinking into the distance.

[John Drake]

Not going to buy my vote with this. My vote is for sale, however, to whomever will add $200 or $300 to my Social Security check above and beyond the COLA.

[timendres]

23 hours ago, blue manc said:

I thought the DTA rules were that you don't pay tax on earnings that have already been taxed by the US>

Surely this means that if you are not paying tax in US, then the income stream becomes taxable ?
 

 

i paid income tax to Thailand, of course. Hence no tax due in the US.

You can still owe tax to the US, depending on the circumstances, but the taxes paid in Thailand offset those due to the US.

[JCauto]

On 10/11/2024 at 1:06 PM, Taco said:

The guy is getting desperate. First off the presidents job is not to write laws. Second, it would never pass the house nor senate. In typical Trump fashion, he doesn’t care about the future nor the national debt. He will lie about anything to get his angry mob excited and then revert back to helping rich people and trade US connections in office to get more Trump hotels and golf courses built overseas. When he looses he will just sell more Trump bibles, watches and sneakers. Typical snake oil salesman. 

You forgot about selling state secrets to Russia. Remember the spate of deep plants suddenly dying by the dozens when he was Prez? Coincidence, right? And do you take thousands of documents from your place of work after you leave and store them in your bathroom at your house afterwards without telling anyone...and they contain highly classified FYEO documents?

[Digitalbanana]

Another tax cut for the rich. Probably went down like this while he was taking a dump. One of his rich friends phoned him from overseas and said “Hey I’m being double taxed” and Trump replied “What does that mean?”. And his rich friend said “I’m being double taxed”. So, Trump replies “Well that’s stupid, and you’ve got a couple of billion dollars you’ll contribute to me so sure we’ll get rid of that tax”. Ends call, wipes his arse and heads off to another rally.

[Lacessit]

The Harris promises are costed as increasing the deficit by $1.2 trillion. Trump's promises increase debt levels by $5.8 trillion.

 

This new promise is like pouring gasoline on a fire.

[Danderman123]

On 10/11/2024 at 3:47 PM, blue manc said:

I thought the DTA rules were that you don't pay tax on earnings that have already been taxed by the US>

Surely this means that if you are not paying tax in US, then the income stream becomes taxable ?
 

If the Thai tax rates are higher, you still have to pay tax, minus what you paid to the US.

[Danderman123]

Classic Trump incompetence.

 

Most US voters overseas have already voted.

[Danderman123]

7 hours ago, timendres said:

 

i paid income tax to Thailand, of course. Hence no tax due in the US.

You can still owe tax to the US, depending on the circumstances, but the taxes paid in Thailand offset those due to the US.

It's the other way around, the US gets the first grab of your money for US income.