When an American citizen lives and works in another country and pays taxes in the United States, that taxes is a form of tribute that the United States extracts from that foreign country’s wealth. It goes into the coffers of the United States which is currently having a hard time being honest and prudent in its management of the Federal expenditures. In the case of a public corporation, the extra taxes to the United States that one of their employee’s must pay can anger rightly shareholders. Such is the case of Bob Diamond, who is the chairman of Barclays Bank based in the UK.
One of our readers, John, points out the following article and commented:
An example of investors (the UK taxpayers in this case because of bank bailouts questioning a bank chairmain’s pay packet) –
An American, Bob Diamond, chairman of Barclays Bank, is under fire because of his American Tax Bill and the bank’s promise to “foot” the US tax bill.
Essentially it amounts to the British Government paying the US income tax – is this fair?
It highlights how expensive it is to hire “US-persons” in the boardroom and how the US is losing its corporate influence abroad. It’s the old adage, “out of sight, out of mind”, even in the world of video conferencing, internet, nothing replaces feet on the ground.
You see what makes matters worse is that if they hired another nationality this “tax equalisation” agreement would essentially be a one-off payment, but because he’s American the payment goes on and on and on, year in year out.
Here’s the link: