Extraterritorial Taxation #2: How It Is Experienced

Abstract

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

This paper summarizes the findings of three recent surveys conducted to better understand how overseas Americans experience U.S. extraterritorial taxation.

The three surveys discussed in this paper expose the considerable harm that the U.S. extraterritorial tax system inflicts upon persons living outside the United States. The harm is not just financial; it is also psychological, social, and physical. And for some it is even greater still, as it results in the loss of U.S. citizenship. The surveys make clear not only the need to end the U.S. extraterritorial tax system but also the urgency of doing so. No one should have to choose between citizenship – a constitutional and a human right – and the ability to live a normal life.

Keywords: Extraterritorial taxtion, Citizenship-Based Taxation, Residence-Based Taxation, Expatriation, Emigration, Overseas Americans, Citizenship, Retirement, Investing, Fear, Suicide, Stress, Renunciation of Citizenship

JEL Classification: D63, E62, F22, F54, G21, G23, G28, H24, H25, H26, H30, H87, J24, J26, J61, K34, K37