> Do people in America seriously consider it an acceptable trade-off when "Binance blocks U.S. residents from its website"? This just looks like own goal after own goal.
The people who decide these things are not accountable to the public.
Sure they are. This just isn’t an issue the public cares about. Citizenship based taxation has been the law of the land since it was brought in to punish deserters in the civil war. Americans broadly don’t care though. They should - America is the only country on earth to do this - but they don’t. Apathy towards an issue you care about isn’t the same as lack of accountability, IMO.
Quite right, although they are of course not in a position to enforce this; certainly not in the way America is. I suspect while they say they do, the number of returns they actually get can be counted on one hand. So yes in theory, probably no in practice. I’ve always wondered though if you have some data I’d love to see it!
The tax rate is 2%, and it is estimated to bring in about $100m annually,[1] which is about 5% of Eritrea's $2b total government revenue for 2017.[2] For comparison, US annual revenue from overseas taxation is estimated at $870m.[3]
There are about 1.5m overseas Eritreans,[4] and at least half of them are estimated to be in compliance.[1]
Yes, I know individuals that have needed to dual file and pay. As I understand, they get credited for some amount of taxes paid to the local jurisdiction, so if they live somewhere with a higher tax load and collect a modest salary, they aren't actually paying Uncle Sam. This may explain your observation.
If they live someplace with lower taxes or earn a high enough salary they end up paying both jurisdictions. For the individuals I knew, the company accounted for this by paying them some relocation bonus for a few years to offset the additional expected tax load.
Exactly this. Plus, some tax treaties don't include types of income beyond salary/wage - think income from investments, self-employed/contracting, etc.
Renunciation also of course has high fees and a massive tax burden. One is required to pay taxes on all of their assets as though they disposed of them on their last day of citizenship or leave (I believe) 30% in a trust to the IRS should it be illiquid.
Anyone whose started a small business while abroad is the proud owner of a controlled foreign corporation and required to file form 5471. That ones a mess. The reporting requirements alone are a massive burden, between preparation fees and opportunity cost.
I know of 2 people that have received notices abroad (third world country) about paying US taxes. Neither of them have lived in the us since the early 1970s
Turns out if you are a retiree living your golden years in a low tax jursidiction, you are pretty much ignored.
However, if you want to just live your life elsewhere and dare to end up successful, (for example, buying property >100k) somehow the US government seems entitled to your earnings.
They’re accountable to people who don’t care about your issue, that’s not a lack of accountability. Accountability doesn’t always mean you agree with the direction or outcome.
The people who decide these things are not accountable to the public.