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Author: cliff666 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19222  
Subject: Expatriates and taxes Date: 6/15/2008 1:40 PM
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First off: I apologize for posting an article I thought was on topic for retirees, as it was Obama's suggestions regarding social security. I should have known that this would lead to a lot of political posturing.
http://boards.fool.com/Message.asp?mid=26731523

Having apologized, here is another article some may react negatively to:

http://www.latimes.com/business/la-fi-perfin15-2008jun15,0,8...

The U.S. cracks down on rich tax evaders

You may not like paying federal taxes, but chances are you're not going to renounce your U.S. citizenship to get out of the obligation.

That's probably wise, especially because a tax bill expected to be signed into law this week contains a provision designed to crack down on the roughly 500 rich people who expatriate themselves each year to avoid U.S. income and estate taxes.

Although the number of people who take that path may be small, the government has been enacting increasingly strong measures to stop the practice over the last dozen years.

For that you can thank billionaire and ex-Floridian Kenneth Dart, said Bill Ahern, a spokesman for the Tax Foundation, a nonpartisan research group based in Washington.

Dart is one of the heirs to a multibillion-dollar Styrofoam-cup manufacturing business based in Sarasota, Fla. In 1994, he renounced his citizenship and moved to Belize, a small Central American country known as a tax haven.

Belize promptly sought U.S. permission to open a consulate in Sarasota with Dart as its consul. Foreign diplomats are exempt from U.S. taxes, so the move would have allowed Dart to avoid U.S. taxes while continuing to live here.
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Here is a situation affecting only about 500 people in the world who seek to avoid paying US taxes, even though they want and use all the advantages which accrue. Fair? I think not.

cliff
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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13438 of 19222
Subject: Re: Expatriates and taxes Date: 6/15/2008 2:26 PM
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First off: I apologize for posting an article I thought was on topic for retirees, as it was Obama's suggestions regarding social security. I should have known that this would lead to a lot of political posturing.


eh. still interesting.

i just have to get better at filtering the noise


=

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Author: fleg9bo Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13440 of 19222
Subject: Re: Expatriates and taxes Date: 6/15/2008 2:38 PM
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Belize promptly sought U.S. permission to open a consulate in Sarasota with Dart as its consul. Foreign diplomats are exempt from U.S. taxes, so the move would have allowed Dart to avoid U.S. taxes while continuing to live here.

Well, that's pretty scummy and obviously a scam. But I don't have a problem with rich people (or any other people) leaving the country and changing citizenship to avoid future US taxes as long as they really do stay out of the country for all but a minimum number of days. After all, if they're rich, they already paid plenty while they were here. And if they continue to earn money inside the US, I believe that continues to be taxable.

I may be wrong on this because it's been a long time since I checked, but I think you're on the hook for 10 years of US taxes on your worldwide income after becoming a citizen of another country, even if you never set foot here again. Imagine moving from CA to WA or NV to avoid state income taxes and having to pay CA for the next ten years anyway. It ain't right.

--fleg

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Author: cliff666 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13443 of 19222
Subject: Re: Expatriates and taxes Date: 6/15/2008 3:38 PM
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I may be wrong on this because it's been a long time since I checked, but I think you're on the hook for 10 years of US taxes on your worldwide income after becoming a citizen of another country, even if you never set foot here again.

--fleg

That is actually in the article. I didn't quote all of it. A recent change because of abuses such as the one cited.

cliff

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