Comment on There are Minimum Wages, Why Not a Maximum Wage?
TheObviousSolution@lemm.ee 1 month agoThe problem is that they have enough independence to just cross borders and easily pay for new citizenship if it suits them. It would have to be a world wide movement. It’s impossible, or at least would only be possible within some mythical completely self-sufficient country that could withstand their meddling.
The US has exit taxes, as do many countries. If you try to renounce your US citizenship, you can be taxed based on the value of unsold assets.
I hate that the US is one of the few countries in the world that has citizenship-based taxation. It’s awful and stupid. But, in theory, it does mean that an American couldn’t just avoid taxes by moving to another country.
Those are meaningless, when their taxable income is meaningless.
But, if they tried to move to another country and renounce their US citizenship they’d have to pay an exit tax based on the entire value of their assets, including unrealized gains.
chiliedogg@lemmy.world 1 month ago
My solution:
Your tax burden is your tax burden. If it’s 15% and you run off to a country where it’s 5% to avoid taxes, that’s fine. You can pay them 5%.
But you’re still on the hook for the remaining 10%.
If the 5% country tries to act as a tax haven and refuses to enforce the remaining 10%, they get a national embargo until they get in line.
TheObviousSolution@lemm.ee 1 month ago
I have to repeat my response here, that is meaningless, when their taxable income is meaningless. How much did Trump pay in taxes again? The trick is to keep it tied up in an “investment” until they need it.
howrar@lemmy.ca 1 month ago
Isn’t that already how it works? Currently, US citizens still have to pay taxes when living outside the country unless they’re paying taxes to a specific set of other countries. Although consequences are on the individual who fails to pay and not their country of residence.
chiliedogg@lemmy.world 1 month ago
I’m not saying for US citizens and US companies. That’s how they avoid taxes - by registering in anther country.
Any person or company that does business in the US, even tangentially.
You’re based out of Panama? Cool. Pay them what they require, then pay the remaining X that a US company would own to either Panama, the US, or some other country you operate within.
Don’t grant them tax havens.
Demdaru@lemmy.world 1 month ago
Welcome to yet another world war I guess?
chiliedogg@lemmy.world 1 month ago
We’re due.