Monday, May 12, 2014

Land of the Free?

Almost all countries tax the income only of their residents, not citizens. For nearly all nationalities, if you don't live in the country of your citizenship, your home government doesn't tax you on income earned abroad. However, two countries tax the worldwide income of nonresidents who are citizens of the country, regardless of their residence.  Two only, count them:
  1. Eritrea taxes its nonresident citizens on their foreign income at a reduced flat rate of 2%.
  2. The United States taxes its citizens and resident foreigners on their worldwide income, and nonresident foreigners on their local income.

The Land of the Free is one of the only countries on the planet that taxes its non-resident citizens on their worldwide income.  And, don't forget, if you're an American with $10,000 or more in foreign bank accounts, you need to file an annual Department of the Treasury Form 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR). They want to know; and you better tell.

Americans can brag to me all they want about their military and economic might and the great expanse of their empire, the greatest the world has ever known, but as for Americans being freer than other nations, give me a break. That is an apparent falsehood.

Land of the Free?  Don't make me sick. 

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