Extraterritorial Taxation #1: How it Has Evolved

Abstract

This is the first in a series of sixteen papers about the U.S extraterritorial tax system.

Since Cook v. Tait was decided in 1924 much has changed, with respect to both federal taxation and U.S. citizenship. This paper explains their parallel evolutions.

While Cook may hold that the federal government has the power to tax overseas Americans based upon their worldwide income, it is a myth that Cook allows the government to tax individuals under any conditions, without any regard for the effects the policies have, and in manners that violate their rights.

In sum, Cook is ripe for revisiting.

Keywords: Extraterritorial taxtion, Citizenship-Based Taxation, Residence-Based Taxation, Expatriation, Emigration, Overseas Americans, Citizenship, Denationalization, Denaturalization

JEL Classification: D36, E62, F22, G21, G23, G28, H24, H25, H30, H87, J26, K34, K37, N41, N42