Liberty and justice for all United States persons abroad

The Isaac Brock Society

Second Estate – How The Tax Code Made An American Aristocracy – Ray Madoff

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As goes tax policies of a nation, so goes the survival of the civilization.BC Law Prof Ray Madoff explains how and why the US tax system has created tremendous inequality and "aristocracy". Bottom line: "Salaries are for suckers"This video is worth watching!www.nytimes.com/2026/04/17/o…

— John Richardson (@expatriationlaw.bsky.social) 2026-04-19T11:57:05.254Z

Thanks to long time Brock contributor Tim Smyth who introduced me to this fantastic article/podcast.

Ray Madoff is a Boston College law professor who is the author of a number of books including:

Second Estate – How The Tax Code Made An American Aristocracy

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Why this interview is important …

Americans abroad are acutely aware of the unfairness, arbitrariness and weaponization of the U.S. tax system. There are multiple layers of unfairness. The institutional layers of unfairness include (but are not limited to):

First level 0f unfairness – defining tax residency in terms of the “circumstances of birth“ (citizenship) rather than the “circumstances of life” (where people actually live and where the activity in their lives is centered).

The unfairness includes taxation of people based on “status” (citizenship, immigration status) without regard to whether people live in the United States. The “status” based unfairness is discussed and understood only by those impacted by it.

Second level of unfairness – taxing different forms of income and assets differently

This is where this interview with Ray Madoff really shines! At the risk of oversimplification, Professor Madoff explains:

– how the tax system discriminates against people who receive their income in salary as opposed to investments; and

– how this discrimination facilitates the tremendous inequality of wealth in the United States; and

– how the tax system perpetuates and entrenches this inequality of wealth from generation to generation (hence the word “aristocracy“).

Question:

Why should income from capital gains be taxed at a lower rate than income from work?

The U.S. tax system appears to operate in a way that exempts the super wealthy from the same levels of taxation that are experienced by wage/salary earners.

I highly recommend this interview. It is the most educational hour that I have experienced in a very long time. Understanding this interview will equip you with a better vocabulary and understanding to discuss tax policy.

At one point Professor Madoff draws a direct comparison between the Canadian and U.S. tax systems. There is a brief exchange about citizenship taxation and renunciation of U.S. citizenship.

An incredibly rich discussion …

Listen to this podcast! I promise you will benefit.

John Richardson

 

The interview on YouTube:

 

 

Links to the original New York Times article:

https://www.nytimes.com/2026/04/17/opinion/ezra-klein-podcast-ray-madoff.html

https://www.nytimes.com/2026/04/17/opinion/ezra-klein-podcast-ray-madoff.html?unlocked_article_code=1.cFA.Ik6N.JNRWj6ASShrt&smid=url-share

You Know A Tax System Is Broken When Individuals Fear Tax Compliance As Much As They Fear Tax Noncompliance

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When tax compliance is weaponized because of the "status" of an individual there is a risk in attempting compliance and a risk in non-compliance. The undocumented in the USA have a lot in common with US citizens outside the USA. (NYTImes.com gift article)www.nytimes.com/2026/04/14/u…

— John Richardson (@expatriationlaw.bsky.social) 2026-04-17T12:52:36.628Z

Part A – Why tax systems be restricted to taxation and not be used as a mechanism to enforce immigration laws

The New York Times article includes:

For decades, the I.R.S. implicitly encouraged undocumented taxpayers to file a return as part of its broader mission to promote tax compliance. Before the agreement between the I.R.S. and ICE, unauthorized immigrants paid roughly $60 billion annually in federal taxes, according to an estimate by the Institute on Taxation and Economic Policy, a progressive think tank. Much of it went to Social Security and Medicare, which are programs that undocumented immigrants cannot benefit from.

With few exceptions, taxpayer information was kept walled off from other government agencies, and that won a measure of trust among many undocumented immigrants. But under President Trump, the effort to find as many immigrants to deport as possible led the administration to try to exploit that trust.

Bottom line: The assumption that the information in a tax return would not be shared to other government agencies has been shattered. The “undocumented” have reasonable grounds for worry.

Of further interest is:

John Koskinen, who was the I.R.S. commissioner from 2013 to 2017, said the potential consequences of sharing tax data with D.H.S. were evident.

“Our job was to collect taxes owed, not enforce immigration laws,” said Mr. Koskinen. “That was the job of D.H.S. And it was clear to me that, if immigrants thought their information was going to be shared, many of them would quit filing their tax returns.”

The link in the article is a “Gift Link”. Hence, you can see the comments which are interesting.

Part B – Thinking about the FATCA related transmission of taxpayer data to the United States

Continue reading →

Naturalized U.S. Citizens – David Frum Of Canada and Fareed Zakaria Of India – Discuss Their Feelings About U.S. Citizenship

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Fascinating discussion between two well known naturalized U.S. citizens – @davidfrum.bsky.social and Fareed Zakaria – about the the meaning of U.S. citizenship and where the U.S. is today. Consensus: USA has changed and not for the better.youtu.be/hHEoPFrZIhw?…

— John Richardson (@expatriationlaw.bsky.social) 2026-04-08T21:46:20.478Z

This post is NOT for everybody. But, it is a fascinating discussion between two well known naturalized U.S. citizens about America today. It lasts about a hour. I would say it is a discussion with a 40 year perspective and a good deal of substance.

 

John Richardson

 

April 1, 2026 – The Supreme Court Will Hear The Trump Administration Argument’s For Restricting Birthright Citizenship

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Prologue

Interesting article and even more interesting comments on the 14th Amendment "birthright citizenship" issue.The Trump v. Barbara case to be heard April 1, 2026 will probe which individuals born in the USA are not U.S. citizens at birth.www.nytimes.com/2026/03/30/u…

— John Richardson (@expatriationlaw.bsky.social) 2026-03-31T09:07:48.861Z

 

On Wednesday April 1, 2026 the Supreme Court of the United States will hear the “Trump v. Barbara” case. This issue is whether birth on U.S. soil is sufficient to confer U.S. citizenship regardless of the legal status of the parents. An excellent analysis of what to expect is here.

You can listen to the live argument on the Supreme Court site. It all takes place on Wednesday April 1, 2026 at 10:00 a.m. Eastern time.

This case will be of particular interest to the “Accidental Americans” community who do not believe that they should be treated as though they are U.S. citizens. President Trump may agree with them. Specifically, you can expect the Trump lawyers to argue  – as per his January 20, 2025 Executive Order that:

Among the categories of individuals born in the United States and not subject to the jurisdiction thereof, the privilege of United States citizenship does not automatically extend to persons born in the United States: (1) when that person’s mother was unlawfully present in the United States and the father was not a United States citizen or lawful permanent resident at the time of said person’s birth, or (2) when that person’s mother’s presence in the United States at the time of said person’s birth was lawful but temporary (such as, but not limited to, visiting the United States under the auspices of the Visa Waiver Program or visiting on a student, work, or tourist visa) and the father was not a United States citizen or lawful permanent resident at the time of said person’s birth.

https://www.whitehouse.gov/presidential-actions/2025/01/protecting-the-meaning-and-value-of-american-citizenship/

In Summary, it appears that the Trump administration will argue that “birthright citizenship” is not available to children born on U.S. soil to a mother who is neither a U.S. citizen nor permanent resident AND when the father is neither a U.S. citizen nor permanent resident.

My prediction (which is worth nothing)

The “Birth Tourism” industry will continue ONLY to the extent that the biological father of the child is a U.S. citizen or permanent resident. Yes, there are some circumstances where U.S. citizenship or Green Card status is a benefit! Male Americans abroad can become “registered sperm donors”. (Perhaps a side business to offset the costs of U.S. tax compliance abroad.)

If you are interested in a more detailed discussion (on the law and not the business opportunity for male U.S. citizens)  see my lengthier post …

 

Trump v. Barbara – Ending The “Birth Tourism” Presumption That Birth On U.S. Soil Is A Sufficient Condition For U.S. Citizenship

John Richardson

 

 

 

 

Some Americans Considering A Move To Canada May Already Be Canadian Citizens

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I just got off a call with a Canadian resident who wishes to renounce his U.S. citizenship. He is NOT a naturalized Canadian citizen. Rather he was born in the United States (making him a U.S. citizen) to a Canadian citizen father (making him a Canadian citizen). The benefits of “dual citizenship from birth” means that he will be able to avoid “covered expatriate” status (no 877A exit tax payable).

During the conversation it became apparent that he has a son who born in the United States and has always lived in the United States (about 25 years old).

Amazingly, due to a change in Canada’s citizenship laws that took effect on December 15, 2025:

1. The son (born before December 15, 2025)  IS a Canadian citizen!! All that is necessary is that the facts be proven to support that claim to citizenship.

2. Children born after December 15, 2025 to a “born abroad” Canadian citizen are Canadian citizens if the Canadian citizen parent has 1095 days  of Canadian presence prior to the birth of the child. (Do you think it might be a good idea to acquire that presence by attending university in Canada?)

Great news for a lot of people!

A “watered down” description of this is available here on the Government of Canada site.

I suspect that this change in Canada’s citizenship laws is a “gift” to many U.S. citizens. Think of it!

Many U.S. citizens (and of course citizens of many other countries) will have the right to be recognized as Canadian citizens. For those who don’t want Canadian citizenship, there is even a simplified procedure to renounce Canadian citizenship. Interestingly the cost to renounce Canadian citizenship is $100 CDN.

Further information is available here.

In a world where people are paying huge amounts of money for a second citizenship this is a bargain!

 

John Richardson

 

 

 

 

 

 

U.S. Citizenship Taxation Violates International Law

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Meeting Ellen Timmer

Ellen Timmer is a Dutch based lawyer who has been and continues to be very active in the opposition to FATCA and U.S. citizenship taxation. Included in the long list of her accomplishment is that she represented retired KLM Pilot (and “Accidental American) Ronald Aries.  Mr. Aries had to fight to retain a bank account in the Netherlands (which is his country of residence). See the podcasts below …

About FATCA and U.S. Citizenship Taxation

Of course, FATCA is simply a consequence of U.S. citizenship taxation. The practical meaning and reality of “citizenship taxation” is that it is simply the United States claiming people who live in other countries and taxed as residents of those countries should be treated as though they also live in the United States.

U.S. citizenship taxation is taxation based on the “circumstances of birth” and NOT on “the circumstances of life”.

This ridiculous notion is reinforced by both the “saving clause” in U.S. tax treaties and the FATCA IGAs.

An Attack On The Sovereignty Of Other Countries

I continue to believe that U.S. citizenship taxation is a violation of international law. I was very pleased to see that Ellen Timmer included my argument in 2025 post on her site.

The post is here:

US Citizenship Taxation Violates International Law | CBT, FATCA

 

Appendix – Meeting Retired KLM Pilot Ronald Aries

For those interested in meeting retired KLM Pilot Ronald Aries, here are two podcasts I did with him Helen Burggraf’s American Expat Finance News Journal.

Podcast 1

Podcast 2

 

John Richardson

 

 

 

 

 

Effective April 13, 2026 The Fee For A “Certificate Of Loss Of Nationality Will Be Reduced To $450

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Part A – The Good news!! – The Fee For A CLN Is Lower

I noted in my post of March 5, 2026 that the reduction in fees for a Certificate of Loss of Nationality was in the final regulatory stage.

The fee reduction for a CLN  from $2350 to $450 USD will  be in effect on April 13, 2026.

https://www.federalregister.gov/documents/2026/03/13/2026-04931/schedule-of-fees-for-consular-services-fee-for-administrative-processing-of-request-for-certificate

(As reviewed in the Appendix to this post, the delay in the fee reduction had been extensively discussed in my January 4, 2026 post.)

A “Certificate of Loss Of Nationality” will be less expensive and therefore more available

On March 13, 2026 the State Department published in the Federal Register a “Final Rule” which:

… adjusts the Schedule of Fees for Consular Services by reducing the fee for Administrative Processing of Request for Certificate of Loss of Nationality of the United States from $2,350 to $450.

This “Final Rule” is to take effect 30 days from the date of publication. This  means that the renunciation fee will be $450 effective April 13, 2026.

The fee reduction is NOT retroactive

The Notice is clear that the fee reduction is prospective and NOT retroactive.

To learn more …

Here is the pdf to the State Department announcement of the fee reduction for a CLN from $2350 to $450.

2026-04931

Commentary on X …

 

Continue reading →

Taxpayer Advocate To IRS: Your Task Is To Administer A Worldwide Tax System. Do it!

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On February 23, 2026 SEAT President Dr. Laura Snyder published an excellent article in Tax Notes.  The article discussed  the recent Taxpayer Advocate report which was sympathetic to the tax situation of Americans abroad. (I previously posted on the 2025 Taxpayer Advocate Report noting that: The IRS Has An Obligation To Meet Taxpayers Where They Are, But Is Not Doing So For Americans Abroad.)

Dr. Snyder expands the discussion …

The article examines the National Taxpayer Advocate’s 2025 Annual Report to Congress, which spotlights the difficulties faced by overseas taxpayers as one of the most serious problems of U.S. tax administration. The IRS’s failure to administer a worldwide tax system raises constitutional issues and has serious repercussions not only for overseas Americans but also for the tax system as a whole.

Her article is available here:

Taxpayer Advocate to IRS: Your Task Is to Administer a Worldwide Tax System. Do It.

 

John Richardson

 

AARO White Paper Explains Why The Voting Rights Of Americans Abroad Are Under Attack

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Question –  what truly defines an American voter?


Answer – an American voter is a U.S citizen who does NOT have a constitutional right to vote.

 

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Lobbying for a statutory right to vote …

AARO (Association of Americans Resident Overseas) is a Paris based organization with a long history of lobbying for and protecting the voting rights of Americans abroad. A previous post on Brock detailed AARO’s efforts in 1975 to secure voting rights for Americans abroad.

The above video is based on the following research published by AARO in 2026.

Direct link to AARO paper

Click to access STATE_OF_PLAY_2026_FEB_16_FINAL.pdf

The problem in a nutshell …

The reality is that not all Americans abroad have ever had the opportunity to vote. In fact, in the last election, Americans abroad in 13 states were not eligible to vote.

The current administration is proposing various new laws that make  it more difficult to vote for two reasons:

1. Proof of citizenship: This is much ore difficult for Americans abroad. Would you want to send a copy of your passport to the USA?

2. Some Americans abroad being forced to vote in DC. There are no representatives of DC in Congress.

At a minimum for Americans abroad this means:

“Taxation without representation!”

 

A longer post on this topic is available on my Citizenship Solutions site:

AARO White Paper Explains Why The Voting Rights Of Americans Abroad Are Under Attack

Warning!! Voting in a U.S. election after the commission of an expatriating act will make it impossible to argue for a CLN based on a past relinquishment.

 

John Richardson

 

 

 

 

All Roads Lead To Renunciation AND The Reduction Of The Fee To Issue A “CLN”

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My January 4, 2026 post titled “Americans Abroad Aren’t Renouncing Because They Want To – They Are Renouncing Because They Have To” included a discussion of the State Department’s promise to reduce the fee to issue a CLN from $2350 to $450.

Americans Abroad Aren’t Renouncing Because They Want To. They Are Renouncing Because They Have To!

Today, I am pleased to report that “All Roads Lead To A Reduction In The Fee To Issue A CLN”.

Q. How much longer will it take?

A. I don’t know. But, I do note that the United States was able to put a man on the moon in ten years. Clearly, the reduction of the renunciation fee is a project of equal complexity.

The following link reveals that the fee reduction appears to have been approved on February 25, 2026.

 

 

John Richardson