Extraterritorial Taxation #4: Why Nothing Changes

Abstract

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

Millions of persons living overseas suffer under the U.S extraterritorial tax system. Many organizations and individuals have been and continue to work to change the system. But to date their efforts have failed. This is for several reasons: entrenched prejudice towards overseas Americans, pervasive myths about how persons living overseas are taxed and the high complexity of the subject matter, and the lack of political influence. For any change to take place these formidable hurdles must be overcome.

Keywords: Extraterritorial taxtion, Citizenship-Based Taxation, Residence-Based Taxation, Expatriation, Emigration, Citizenship, Stigmatization, Overseas Americans, Tax Treaties, Foreign Earned Income Exclusion, Foreign Tax Credit

JEL Classification: D63, E62, F22, F53, F54, G21, G23, G28, H24, H25, H26, H30, H87, J61, J68, K34, K37