U.S. taxation of American Expats

[ericbj]

Quote from "Doug Casey's International Man"; 13th Nov.2024 :

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INTERNATIONAL MAN: Trump has promised to end citizenship-based taxation for American expats.

 

What would be the broader implications of this change, and do you think he’ll deliver on this promise?

 

DOUG CASEY: It’s a wonderful idea because the US is the only country in the world, other than Eritrea, that taxes its expats.

 

If Americans leave the country, they’re still taxed as residents for as long as they live. It’s an insane policy. Of course, he should try to change it.

 

Will he be able to change it?

 

I’d say the chances of that are slim and none, and Slim’s out of town. With the US government on the way to bankruptcy, Congress won’t want to cut off that source of revenue. If it does, scores of thousands of rich Americans would leave the country to escape its onerous tax and regulatory burdens.

 

In addition to that, the entire world is going the other direction. Among other places, France and Canada are talking seriously about taxing their expat citizens.

 

I hope it happens, but don’t count on it. A US passport will remain a huge liability for anyone with assets.