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So North Korea and the United States do have something in common. They’re two of a handful of nations that practice the evil regime of double taxation.
It works thus:
You’re American and resident in, say, Germany and work there.
The German tax authorities tax you on the income you earn there, which is fair enough.
Then the American authorities pop up over the ramparts and want their share, too, generously letting you offset taxes on income up to €50k.
Of course, if you’re working overseas, there’s a significant chance you’ll be pulling in quite a bit more than that, but it gets better.
If – at some stage – you think “Sod this for a game of soldiers, I’m going to take up German citizenship”, the US Senate was a bit quicker.
Back in 1998, they decreed that you STILL have to pay double taxes for 10 years after you’ve relinquished your US citizenship.
And it gets even better.
As from 1 July ((I think), if you relinquish your citizenship, the IRS holds a virtual sale of your worldly assets and whacks you with Capital Gains tax for the whole shebang, even though you’ve not actually achieved any Capital Gains.
Although you’ll probably have to.
By selling your house to pay the bloody taxes.
Oh, and if you have a Green Card and they arbitrarily decide that they don’t want you to have one anymore…yep, it’s as if you’ve relinquished your citizenship.
What a ratbag bloody place
IRS, taxation, double taxation, USA, United States, North Korea, Capital Gains Tax, Green Card
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