— U.S. Citizen Abroad (@USCitizenAbroad) December 25, 2015
This is cross posted from the RenouceUSCitizenship blog. I find it fascinating that many U.S. politicians and observers of U.S. tax policy are upset that it is possible to comply with U.S. tax law and to avoid paying taxes to the United States. Isn’t this an admission that tax reform in the United States is required? Shouldn’t these people be expressing their rage at Congress? After all, as Tim Cook says:
“It’s a tax code. It should have been changed years ago.”
Yet, (for reasons that are inexplicable to me) these politicians vent their rage at the companies. The tax code encourages U.S. persons (including corporations) to leave the United States. Instead of changing the tax laws, people like Hilary Clinton, Carl Levin, Barack Obama and his Motley Crew of Democrats want to punish them for leaving. Do they believe that “U.S. persons” are owned by the U.S. Government? Is that the problem? U.S. persons who renounce their citizenship (whether Green Card abandonment, corporate inversions, or straight renunciations) are somehow escaping their rightful owners? Are these people for real?
The current S. 877A Exit Tax rules were originally proposed by President Bill Clinton in 1996. Hilary Clinton is now proposing Exit Taxes on U.S. Corporations.
Perhaps “U.S. Exit Taxes” should renamed: U.S. “Clinton Taxes”. In any event …