He says that he has had the personal experience of being double taxed as an American abroad. But, he first wants to discuss the principles of a "Liberal Democracy". Says, Trumpism is on the rise ...
He is correct that @TheDemocrats need a new generation of leadership. True. But, I would really like to hear some mention of @citizenshiptax, #FATCA, etc. He is just criticizing the existing politicians. This guy doesn't understand his audience.
He is not interested in the issues of #Americansabroad. Let's see if this somehow gets more relevant. He is the only candidate with the "stamina, energy and ideas ...". Finally!! Different issues for #Americansabroad! Cool!
Here comes a #FATCA question for Candidate Patel: Question from somebody who had trouble opening a bank account ... Once elected will you introduce a bill to exempt #Americansabroad from #FATCA reporting?
He is blaming the tax prep firms for the problems. While claiming he understands the problem he is saying what ... #FATCA is necessary but shouldn't burden ordinary Americans. Says there should be thresholds ...
Now claims the solution is to move to territorial tax system (which he incorrectly says other countries have). He is confusing @citizenshiptax with #worldwidetaxation. He is very very confused.
Of note there is no commitment to ending @citizenshiptax and severing citizenship from US @taxresidency. Simply unbelievable.
Now asked how he would lead on #Americansabroad questions ... claims to understand this problem. Commits as a person who has lived abroad: This is an important constituency.
To his credit he does believe that #Americansabroad have value to the USA. But, now he reverted to a discussion about the gerrymandering the liberal democracies. He is now attacking Maloney.
Patel is the candidate who is best positioned to understand the problems of @citienshiptax and #FATCA. But no commitment to ending it.
Now asked about the failure of the USG to fail to vaccinate #Americansabroad. Patel appears to support pressuring the USG to vaccinate #Americansabroad (especially if you are paying taxes to America).
Patel is trying to position himself as an independent candidate in principle and therefore an example of new thinking in US politics.
Perhaps the question is which of the three candidates can be best educated to support ending @citizenshiptax. But, clearly Maloney would be the worst choice.
Interesting and motivating ... Frequent references to the fact that the fight to repeal WEP and GPO has been going in since 1983 (40 years). Adovacy is difficult!
Principle 7 - understanding what the #endingdoubletaxation of #Americansabroad means:
It's critical to understand how US @citizenshiptax makes it harder and more expensive for U.S. companies to hire U.S. citizen employee/managers/executives. Nobody understands this better than Jim Gosart - @jgoshksk ...
Principle 6 - understanding what the #endingdoubletaxation of #Americansabroad means:
The biggest obstacle to change to the US @citizenshiptax extra-territorial tax regime is NOT Congress or Treasury
The biggest obstacle to change is (amazingly) #Americansabroad as a group.
Because, @citizenshiptax affects different people very differently, it is hard to (1) define the problem (people understand it in how it affects them) and (2) willingness to actively campaign for change.
All #Americansabroad must come together to demand the severance of citizenship from @taxresidency.
Let's consider different groups and imagine how
@citizenshiptax affects members of those groups. Those with their financial center of gravity in the US might object to the compliance/filing requirements. But are not likely to experience the destructive affects of having a financial center of gravity outside the USA.
Least impacted: 1. Those who retired in the USA and moved abroad 2. Wealthy Americans who move abroad 3. Employed expats who are temporarily abroad.
Most impacted: 4. Emigrants living permanently abroad 5. Accidental Americans who file U.S. taxes
Could go either way: 6. Digital nomads (often use FEIE to avoid paying tax anywhere).
The key point is that because @citizenshiptax impacts people in different ways it is hard to get universal support for severing citizenship from @taxresidency.
Most people want their specific problem solved but are NOT supporters of completely ending the extra-territorial tax regime.
Principle 5 - understanding what the #endingdoubletaxation of #Americansabroad means:
Starting in "Principle 1" I explained that the problem of the #doubletaxation of #Americansabroad exists in relation to non-US income sources received by individuals who do NOT live in the USA (AKA #Americansabroad.
Key point: If @USCitizenAbroad does NOT have non-US income sources and assets, the US @citizenshiptax will be experienced mostly as filing a US tax return while living outside the USA. From that perspective it's easy to see why non-resident US citizens with US income sources and assets are not hugely impacted by US #citizenshiptaxation.
Let's be a bit more precise. Imagine you have a @USCitizenAbroad with an investment portfolio of US stocks, US Social Security or a US pension. Even if taxed by the non-US country, the US generally has first right of taxation (it's US source income). US will NOT impose punitive taxation bc it's US source income. (The other country will generally provde a credit for US tax paid.
Now let's consider a @USCitizenAbroad with a non-US investment portfolio (possibly including non-US mutual funds), non-US pension, small business corp located outside the USA the situation is the opposite of having all US based assets. The non-US country has first right of taxation. The US will then impose very punitive taxation, reporting and penalties because it is "foreign income and assets". #PFIC, #GILTI, #Form5471, #Form8938, #Form8621, etc. - denial of foreign tax credits ...
Clearly US @citizenshiptax allows those WITH US asset
Second, the lost opportunity of not being able to participate in retirement and financial planning programs created by their country of actual residence:
Third, the horrible fees to tax preparers to prepare (often incorrectly) US tax returns. It is obvious that compliance costs should be considered a separate tax on UScitizenship.
Fourth, the inability to have access to normal banking, brokerage and investment accounts. US Treasury denies this is happening. But, I have people all over the world #renounceuscitizenship in order to free them from this US @citizenshiptax imposed disability.
Fifth, who in their right mind would engage in business opportunities with a U.S. citizen partner. Would you want to have your banking info reported to the IRS
Principle 3 - understanding what the #endingdoubletaxation of #Americansabroad means:
Because @doubletaxation of #Americansabroad is caused by US @citizenshiptax it is clear that ending the #doubletaxation of @USCitizenAbroad can be ended by ending #CBT - AKA separation citizenship from @taxresidency. This is the ONLY solution that solves the problems of all people, all the time and under all circumstances.
That said, other solutions have also been proposed.
These other solutions which RETAIN US #citizenshiptaxation and solve the problems of some but all include ...
-
Proposals that RETAIN US @citizenshiptax but provide relieving provisions for some of the effects of #CBT for some people but not for others. Examples include:
- the 2018 Holding Bill and the later Beyer bills which mostly exclude most non-US source income from US taxation but are aimed at limited forms of income and leave ALL reporting requirements in place (Form 5471, Form 8938, Form 3520, Form 3520A, Form 8621, FinCEN 114, etc.)
Note that although these might enddouble taxaion they are limitedin scope.
It's important to note that #endingdoubletaxation of #Americansabroad ...
- by severing US citizenship from @taxresidency ends all the compliance costs of being a @USCitizenAbroad
- by RETAINING US @citizenshiptax, but creating a "carve out" for foreign income means that the compliance cost, reporting obligations and opportunity cost (restrictions on investing/financial planning) likely continue.