Thread by @ExpatriationLaw

This informative summary of the differences among U.S. state income taxes naturally leads to a discussion about the difficulty in severing @taxresidency from high tax states like CA, NY and Mass.

https://twitter.com/tax_iw/status/1591720024716165120

Whether constitutional or not I suspect that these high tax states will attempt to impose “Exit/Departure Taxes” on individuals who try to sever @taxresidency with the state.

As discussed in this WSJ article by Hank Adler California has already proposed a very “progressive” exit tax on people who sever @taxresidency. Great article here. wsj.com/articles/a-cal…

Mr. Adler kindly joined me to discuss this issue of imposing taxes on severing @taxresidency. Here is the discussion …

The media will focus primarily on movement from state to state and more “Exit Tax” proposals. But, since 2008 the United States - via IRC 877A - has imposed comprehensive/confiscatory Exit Taxes on US citizens who move (or live in) to another country and renounce US citizenship.

But it’s important to note that since 2008 the US has imposed a comprehensive exit on certain individuals who relinquish US citizenship or green card holders who wish to return home.

The US 877A exit tax is the most comprehensive and far reaching of any exit tax in history. Incredibly it is being applied to the non-US assets and pensions of individuals who have never even lived in the US. citizenshipsolutions.ca/2015/04/01/ren…

A video podcast of the application of the 877A exit tax to green card holders wishing to move home …

This video podcast with Peter Palsen of Frost Tax law discusses how the 877A exit tax applies to US citizens who relinquish US citizenship. Prepare to be shocked …

I predict the individual states will attempt to impose exit taxes on US residents who want to move to another state. Welcome to the Hotel California … You can check out but never leave …

@Threaderapp unroll

@threadreaderapp unroll

And here we go … bostonglobe.com/2022/11/11/bus…