12 Pages Posted: 31 Mar 2010 Last revised: 13 Apr 2010
Date Written: March 25, 2010
The US is the only developed country to tax citizens living permanently overseas on their worldwide income. This rule was created at a time when the income tax applied only to the rich and when some of the rich moved overseas to avoid the draft. We do not have a draft any more, the income tax applies to the middle class, and many more US citizens live permanently overseas for non‐tax reasons. In a globalized world, citizenship‐based taxation is an anachronism which should be abandoned.
Keywords: citizenship, international taxation
JEL Classification: H24
Suggested Citation: Suggested Citation
Avi-Yonah, Reuven S., The Case Against Taxing Citizens (March 25, 2010). U of Michigan Law & Econ, Empirical Legal Studies Center Paper No. 10-009; U of Michigan Public Law Working Paper No. 190. Available at SSRN: https://ssrn.com/abstract=1578272 or http://dx.doi.org/10.2139/ssrn.1578272
By Ruth Mason