this post was submitted on 01 Nov 2024
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Work Reform

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[–] TheObviousSolution@lemm.ee 5 points 3 weeks ago (2 children)

The problem is that they have enough independence to just cross borders and easily pay for new citizenship if it suits them. It would have to be a world wide movement. It's impossible, or at least would only be possible within some mythical completely self-sufficient country that could withstand their meddling.

[–] chiliedogg@lemmy.world 6 points 3 weeks ago (3 children)

My solution:

Your tax burden is your tax burden. If it's 15% and you run off to a country where it's 5% to avoid taxes, that's fine. You can pay them 5%.

But you're still on the hook for the remaining 10%.

If the 5% country tries to act as a tax haven and refuses to enforce the remaining 10%, they get a national embargo until they get in line.

[–] howrar@lemmy.ca 2 points 3 weeks ago (1 children)

Isn't that already how it works? Currently, US citizens still have to pay taxes when living outside the country unless they're paying taxes to a specific set of other countries. Although consequences are on the individual who fails to pay and not their country of residence.

[–] chiliedogg@lemmy.world 2 points 3 weeks ago

I'm not saying for US citizens and US companies. That's how they avoid taxes - by registering in anther country.

Any person or company that does business in the US, even tangentially.

You're based out of Panama? Cool. Pay them what they require, then pay the remaining X that a US company would own to either Panama, the US, or some other country you operate within.

Don't grant them tax havens.

[–] TheObviousSolution@lemm.ee 2 points 3 weeks ago

I have to repeat my response here, that is meaningless, when their taxable income is meaningless. How much did Trump pay in taxes again? The trick is to keep it tied up in an "investment" until they need it.

[–] Demdaru@lemmy.world 1 points 3 weeks ago (1 children)

Welcome to yet another world war I guess?

[–] chiliedogg@lemmy.world 1 points 3 weeks ago
[–] merc@sh.itjust.works 1 points 3 weeks ago (1 children)

The US has exit taxes, as do many countries. If you try to renounce your US citizenship, you can be taxed based on the value of unsold assets.

I hate that the US is one of the few countries in the world that has citizenship-based taxation. It's awful and stupid. But, in theory, it does mean that an American couldn't just avoid taxes by moving to another country.

[–] TheObviousSolution@lemm.ee 1 points 3 weeks ago (1 children)

Those are meaningless, when their taxable income is meaningless.

[–] merc@sh.itjust.works 1 points 3 weeks ago (1 children)

But, if they tried to move to another country and renounce their US citizenship they'd have to pay an exit tax based on the entire value of their assets, including unrealized gains.

[–] TheObviousSolution@lemm.ee 1 points 3 weeks ago (1 children)
[–] merc@sh.itjust.works 1 points 3 weeks ago (1 children)

Sure, everything is gameable if you're a billionaire, but it would require clever lawyers and involve some risk.

[–] TheObviousSolution@lemm.ee 2 points 3 weeks ago* (last edited 3 weeks ago)

The biggest problem is that part of the way they usually game is by trying to create and promote a legal minefield by promoting footnotes in the law.

Before you get to their armies of clever lawyers, you will be inundated with rights issues from Accidental Americans and senior expats who have not resided in the US for decades. Not even from taxes as most publications seem to claim but from the far steeper charges of failing to report "foreign bank accounts" of normal banks people have been living literally right beside of for normal day to day tasks, which have been mined with things like fines that are life shattering for anyone but billionaires.

It is designed so that any such solution will grind to an halt by fostering the prosecution of those least capable to defend themselves who are earning even well below what they would in the US. It is why the US renunciation rate is at record highs in the US, because the nation of immigrants have forgot what it is to be an immigrant.

So bringing it back to the point at hand, it isn't just that they have clever lawyers, like Charles Rettig who was literally appointed by Trump to lead the IRS, it's that they are able to hire and influence everyone involved in the process, not just on their side, to make sure they are the last to ever be affected.