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I'm Pleased
Quote:
Originally posted by taxwonk
There are two bases for imposition of a tax burden. One is residency. The other is citizenship. Most countries rely solely on residency; the US relies on both.
This is actually more theoretical than factual. In practice, wages earned overseas by a US citizin resident in the counrty where the wages are earned are not subject to US tax. Treaties, certain provisions of the Code, and foreign tax credits ensure this.
But, there still remains a framework for non-wage income from certain activities not subject to treaty to be taxed in the US, especially if they are not taxed elsewhere. It's the price you pay for citizenship.
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Since everyone tells me this is so, I believe you. I just don't get the principled basis for it, either as a function of the state's claim to the money, or as a function of the state's jurisdiction.
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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