[OCTOBER 1 UPDATE: THANKS EVERYONE WHO SENT LETTERS!]
Today is the very last day to support — by your letter and petition — a Republicans Overseas (RO)/RNC proposal that would replace citizenship-based taxation with a form of “territorial taxation”.
Info is at this website: https://republicansoverseas.com/territorial-taxation-individuals/#petition
RO’s Solomon and Michael will personally bring the letters and petition to the White House on October 2, but they need to receive everything by September 30 — WHICH IS TODAY.
USCA suggests that you consider:
“…The comments in this thread have reflected a diverse collection of views. The RO proposal has been severely criticized for various reasons (mostly revolving around the taxation of nonresident aliens). It’s true that the RO proposal has many flaws.
That said, I think it’s important to recognize in broad terms, that the RO proposal that will change the impact of CBT as it currently stands. In that respect the proposal is at least a start and that start is described as “Territorial Taxation For Individuals”. It is possible (and I think advisable) to support the broad principle of changing CBT without necessarily agreeing with every aspect (or any aspect) of the specific RO proposal. Some of you may have read the most recent ACA proposal which does a good and interesting job of explaining what “territorial taxation” (borrowing from the language of the RO proposal) could mean for individuals. (Interestingly what “territorial taxation” COULD mean for individuals is what most of us think of as “residence-based taxation…)
I am simply trying to argue that change will require education. Education will require engagement. Engagement requires personal interaction.
Your sending a letter and/or signing the petition will help RO achieve the personal interaction that they need to engage and educate. If you care about this issue at all, then you must participate.
I don’t believe that the mere fact of sending letters or signing petitions will make a difference. But, I do believe that WITHOUT YOUR EFFORTS and support that NO CHANGE IS POSSIBLE. Therefore, you are really deciding whether you want to act in a way that makes change possible or if you choose to act in a way that makes change not possible. It’s your choice. This is NOT about supporting a specific proposal. This is about behaving in a way that opens the door to discussion in change.
If it matters, I am not a Republican. I am not a Democrat. To the extent that I am political, I would be an independent. I am not primarily a U.S. citizen. So, these comments are not partisan. But, I am deeply committed to the struggle to getting these unjust laws changed. Furthermore, I believe that change can happen ONLY if all those affected create a united front in opposition to CBT. It is the opposition to CBT that unites ALL Americans abroad.
It’s very simple really. Where laws are made through a democratic process: If you don’t make your view known you can’t expect change.
Your participation may or may not make a difference. But, your NONPARTICIPATION will make a difference because it will ensure that no change will happen….”
“I find it deeply depressing that something so simple could be made so complex that I need to read it twice to understand what they are trying to say. Then I see that they have STILL not grasped this very very simple concept.”
What I’ve learned, in the years since OMG:
Nothing about cross-border taxation is simple. Which national treasury gets the tax revenue from which subset of cross-border taxpayers is constantly being contested. The language and labels are used as shapeshifting tools to further or defend one country’s interests against those of the other country, around the negotiating table. Meanings get get murky and ambiguous.
Residence laws, especially, can get very, very complex, and not just for Americans.
The people writing background reports for politicians may be careless about meanings, but taxwriters and tax treaty negotiators probably are not.
“Nothing about cross-border taxation is simple.”
But this is simple – I don’t live there, I have no property there, I have not been there, I have no income from there, I have no connection to that country at all apart from accident of birth.
In that case, the country has no right to terrorise me for taxes.
This is simple and something the entire world understands with the exception of the USA and Eritrea.
Yes morally it’s simple, and that simplicity is recognized in the fact that the IRS doesn’t actually have the power to collect extraterritorially.
Legally and politically, it’s not simple.
Yep. Well said.
badger: I agree that this is very interesting:
@plaxy, back to why the report author/s chose to cite the article by
Reuven Avi-Yonah, “International Tax as International Law,” 57 Tax Law Review 483 (2003-2004).
https://www.jct.gov/publications.html?func=startdown&id=5025 in their explanation of international tax basis norms.
I prefer the conclusions of this article by the same scholar;
Avi-Yonah, Reuven S., The Case Against Taxing Citizens (March 25, 2010). U of Michigan Law & Econ, Empirical Legal Studies Center Paper No. 10-009; U of Michigan Public Law Working Paper No. 190. Available at SSRN: https://ssrn.com/abstract=1578272 or http://dx.doi.org/10.2139/ssrn.1578272
For anyone interested, here are several other articles to cite that support the move to a US system based on actual residency basis and not the current fictive citizenship=residency basis.
Blum, Cynthia A. and Singer, Paula N., A Coherent Policy for U.S. Residence-Based Taxation of Individuals (May 1, 2008). Vanderbilt Journal of Transnational Law, Vol. 41, No. 3, 2008. Available at SSRN: https://ssrn.com/abstract=2188443
The 2010 paper is more directly applicable to the CBT/FATCA/IGA oppression, but I do find the earlier paper very interesting indeed – shows the evolution of the mess.
Speaking as an “illogical anomaly” with a non-meaningful yet resentful relationship with the USA, I thank you for at least giving me the words to somewhat define the borders of my morass.
Badger: If our issues aren’t addressed in whatever tax reform is accomplished this fall, I’ll be writing to the U.N. again to find out what the hold-up is on our Human Rights Complaint. I’ve found several things to bring to their attention within the documents you’ve been discovering. Thank you for posting all of this! I hope I won’t need to write a thing, but if I do, you’ve supplied a good deal of ammunition. 🙂