Suvarnabhumi Visa Exempt - Change of Tactic Applied

[PeaceBlondie]

This is the first I have heard of this. I am not renouncing my citizenship, and do not fall into the top income or net worth numbers cited here. However, it may affect some ThaiVisa readers in Thailand.

http://www.amateureconomists.com/blogs/200...triates-pay-up/

I hope this is a big lie or a scare, but I suspect not.

[IMA_FARANG]

This is the first I have heard of this. I am not renouncing my citizenship, and do not fall into the top income or net worth numbers cited here. However, it may affect some ThaiVisa readers in Thailand.

http://www.amateureconomists.com/blogs/200...triates-pay-up/

I hope this is a big lie or a scare, but I suspect not.

Sounds like a 1 April notice to me. Never heard of that bill either.

[IMA_FARANG]

This is the first I have heard of this. I am not renouncing my citizenship, and do not fall into the top income or net worth numbers cited here. However, it may affect some ThaiVisa readers in Thailand.

http://www.amateureconomists.com/blogs/200...triates-pay-up/

I hope this is a big lie or a scare, but I suspect not.

Checked it out. The real facts are:

The Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART) was signed into law by President Bush on June 17, 2008. The Heroes Act provides targeted tax relief for members of the military and their families plus some miscellaneous relief provisions for volunteer firefighters and liberalized home sale exclusion rules for certain taxpayers. The tax breaks contained in this legislation are fully offset with tightened expatriation rules, a new rule requiring U.S. companies working under federal government contract to treat certain overseas employees as subject to employment taxes, and a higher failure to file penalty. Tax Relief for Military Members and Their Families Stimulus Rebate Under the Economic Stimulus Act of 2008, eligible individuals qualified for a refundable recovery rebate credit.

Note: The tightened expatriation rules mentoned only refers to controls on the transfer of money earned in the U.S. and transfered abroad. Not people.

[lanny]

This is not a new tax! Persons who renounced their US citizenship, or surrendered a Greencard, have been subject to an expatriation tax for many years. In my practice, I have never had a client who became subject to this tax and I have not studied the new rules. What I do read seems to be merely a tightening of the rules.

[asiaexpat]

S. 1593, the Defenders of Freedom Tax Relief Act of 2007 includes a very complicated set of rules for expatriates that tax multiple sources of realised and unrealised income. It also has provisions to retain US tax status. Very few people need be concerned with this revision to the US Tax Code of 1986.

[johnnyk]

This is not a new tax! Persons who renounced their US citizenship, or surrendered a Greencard, have been subject to an expatriation tax for many years. In my practice, I have never had a client who became subject to this tax and I have not studied the new rules. What I do read seems to be merely a tightening of the rules.

I know several people with Green Cards.

They are not for life and can be allowed to expire while out of the US. What tax then?

[phaethon]

S. 1593, the Defenders of Freedom Tax Relief Act of 2007 includes a very complicated set of rules for expatriates that tax multiple sources of realised and unrealised income. It also has provisions to retain US tax status. Very few people need be concerned with this revision to the US Tax Code of 1986.

This reminds me of the 'old days' when slaves could, in prinicpal, buy their freedom from their legal owners and masters. It was a complex, expensive and almost impossible process, however some manged it. It seems this privilege has now been extended to all US citizens who, regardless of race, may now buy their own freedom. Progress indeed.

[lanny]

Oh, come on! Don't panic. This has been on the books a long time and does not affect that many people. For US citizens, just living abroad does not change anything. Greencard holders who loose their residency status may, and I stress the may, involuntarily have a liability here. But, not very many.

How many people have paid as much as $139,000 in taxes -- for five years no less. There may be more with a net worth of $2,000,000, but even then, I ask "How many?"

These rules are, and have been, aimed at high net worth individuals who want to avoid paying US taxes on their incomes.

I have been working with expats on their tax matters for nearly 30 years. In all that time, I have never, I repeat NEVER, had a client actually fall under these rules.

You are far more likely to run afoul of the Alternative Minimum Tax than have a problem with the expatriation rules. Yet, I don't hear anyone moaning about the AMT. Why not?

[OriginalPoster]

S. 1593, the Defenders of Freedom Tax Relief Act of 2007 includes a very complicated set of rules for expatriates that tax multiple sources of realised and unrealised income. It also has provisions to retain US tax status. Very few people need be concerned with this revision to the US Tax Code of 1986.

This reminds me of the 'old days' when slaves could, in prinicpal, buy their freedom from their legal owners and masters. It was a complex, expensive and almost impossible process, however some manged it. It seems this privilege has now been extended to all US citizens who, regardless of race, may now buy their own freedom. Progress indeed.

If slaves make enough money to have an annual tax liability of US$139K per year and have net worths in excess of US$2M, then I'll sign up to be a slave.

[PeaceBlondie]

Warren Buffett and Jimmy Rogers should worry about this maybe, but not Joe Expat. Thanks, lanny. I shall now go back to saving the aluminum tabs on my cans of Diet Coke.