US Citizens get a raw deal...

[mawilson 2,133]

I think for this year and next the 20% rate is adjusted to £37,400

Well, it's still well below the foreign earned income exclusion threshold.

[Trumplestiltskin 5,791]

Well, it's still well below the foreign earned income exclusion threshold.

It is, but I don't think you can legitimately get away with living in the UK as a dual UK/US Citizen and not pay the UK income taxes based on residency.

There are treaties that prevent double taxation as other posters mentioned, but the IRS also has methods of reducing the amount excluded in foreign taxes - even *if* you qualify for the foreign earned income exclusion.

[Gary and Alla 3,694]

I think I'd be more inclined to debate with you if you could leave your ego out of the equation. Its quite odious imo - nothing wrong with a little humility.

Anyway as you can't drop the egomaniac #######, I am less interested in what you are saying because I am, frankly, rather offended by the way you express yourself.

I don't care.

[Gary and Alla 3,694]

You know - the US isn't the only country with consulates and services. It is however, one of the few countries that taxes by citizenship - independent of residency.

And thank goodness for it. I am many thousands richer today because of it.

[Trumplestiltskin 5,791]

I don't care.

Egotists usually don't.

And thank goodness for it. I am many thousands richer today because of it.

Depends on the country you worked in, doesn't it. And whether what you did was actually legal.

[Gary and Alla 3,694]

From what I a gather you scammed the Ukraine, which probably has dodgy accounting practices and zero treaties with the US. This is why most developed countries use the GST/VAT on top of income tax. The rich get out of tax because repubs support it. Lets not pretend it's the dems giving them the tax loopholes.

Have you seen my big fat Greek weeding? Republicans seem to think tax cuts for the rich are the Windex equivalent.

No, I did not scam Ukraine. I did pay the GST and VAT while living there, of course. They are imbedded taxes in the price of everything.

Who said it was the Dems or the Repubs. Who cares? The rich are not effectively taxed, period. For every new tax, there are new tax "loopholes". You cannot tax the rich into not being rich. You cannot tax business at all, they simply collect tax from you.

We should eliminate ALL corporate tax of any sort and either...

1. 10% income tax on all income earned...OR

2. NO income tax and 23% imbedded GST/VAT whatever you want to call it (my preference since then we don;t have to report anything to the government)

[Ali G. 37]

Who said it was the Dems or the Repubs. Who cares? The rich are not effectively taxed, period. For every new tax, there are new tax "loopholes". You cannot tax the rich into not being rich. You cannot tax business at all, they simply collect tax from you.

We should eliminate ALL corporate tax of any sort and either...

1. 10% income tax on all income earned...OR

2. NO income tax and 23% imbedded GST/VAT whatever you want to call it (my preference since then we don;t have to report anything to the government)

Eliminate all corporate tax. Of course, considering how much tax those poor bastards already pay. Nonetheless, what do you think this would achieve?

So you either want to reduce the income tax to 10%, while eliminating any other tax or use a 23% GST/VAT alone. I don't know for the life of me how this will pay the bills but what do you think such changes would do?

What amazes me is that folks like to think up new tax rates and systems in the US but seem to have a real problem with learning from others that do have an effective yet fair tax system. Why waste time reinventing the wheel when someone else has already figured it out? It's like the US has a wheel with a few buckles in it, yet rater than repair or even replace the entire wheel with another, people are trying to figure out how to get triangular or oblong wheels to work.

Edited February 21, 2010 by Booyah

[Gary and Alla 3,694]

Egotists usually don't.

Depends on the country you worked in, doesn't it. And whether what you did was actually legal.

Egotist or not, I do not care that you are offended by blunt facts and being told you are wrong. Why on earth would I? I will not withhold what is true because it might affect Gene Hunt. Get serious. You posted a critique of US law which is simply wrong and concluded much to your delight, that Americans are somehow put upon. However when it is clearly pointed out that such is not the case, you get offended? Maybe you should stick to one-liners then and not risk inserting your other foot in your mouth.

If it depends on which country you live in then it is not a function of the US law, it is a function of which foreign country you live in, as you so succinctly state. If a US law is advantageous to a US citizen living in Ukraine, and the same law is NOT advantageous to a US citizen living in the UK, then the UK has some problems.

What I did was completely legal in both countries. The inuendo that it is somehow not legal by someone who knows nothing of the tax laws in effect at the time, does not make me guilty of anything. If you have knowledge of the tax laws in both Ukraine and the US at the time, and the detailed knowledge of my tax returns for those years and in which manner I violated the law...then say so. If you are just jealous I made almost 10 years income in two years and saved thousands of dollars every year in tax by working overseas or just feeling dumb for having opened your mouth and changed feet...then get over it.

There is usually no need to violate laws to avoid paying tax, the tax laws have all the avoidance built in to them.

[Trumplestiltskin 5,791]

You are certainly put upon if you work in a country that assesses income tax on the basis of residency if you are also required to report income on the basis of foreign citizenship. It's an imposition not only of time to gather and file a US tax return on income that should be none of the IRS' business, but could also (potentially) of money.

I haven't had to pay UK income tax in 5 years. Why? Because I don't live there. Seems fair to me. Why should you pay income tax to a country for services that you aren't using?

From what I have read, the IRS tax liabilities for different countries depend on whether or not there is an taxation agreement between that country and the US. If there is no such agreement then you could conceivably be liable for tax payments in both countries; and even if there you could still fall somewhere in between - especially if you do not qualify for the exemption (which would happen if you aren't overseas for almost the full tax year) or if you're unable to deduct the taxes paid to the foreign country.

That means, for many USC's working overseas your ability to earn a living is hampered by obligations imposed on you by your home country.

Put upon? I'd say so.

Edited February 21, 2010 by Gene Hunt