Extraterritorial Taxation #7: Inherently Suspect

SEAT Working Paper Series #2023/7 (June 5, 2023).

17 Pages Posted: 5 Jun 2023

See all articles by Laura Snyder

Laura Snyder

Association of Americans Resident Overseas (AARO); Stop Extraterritorial American Taxation (SEAT)

Date Written: June 5, 2023


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

The classification of “citizens” as it is contained in federal tax rules constitutes a suspect classification based upon country of origin (or nationality) and, as such, it is subject to strict scrutiny by a court. The United States has no compelling interest in taxing the non-U.S. income of persons living overseas whose country of origin is the United States. While the United States has an interest in preventing tax abuses by wealthy persons whose fortunes were built using U.S. resources, the U.S. extraterritorial tax system’s classification of overseas persons based upon country of origin is not suitably tailored to serve that interest.

Further, an alternative perspective on equal protection further exposes the profound irrationality and immorality of the U.S. extraterritorial tax system.

The prevention of tax abuses by wealthy citizens can be achieved through a system of residence-based taxation that respects the fundamental rights of all Americans, wherever they live.

Keywords: Extraterritorial taxation, Citizenship-Based Taxation, Residence-Based Taxation, Expatriation, Equal Protection, Strict Scrutiny, Suspect Classification, Country of Origin, Nationality, Sovereignty, IRS, Self-Determination

JEL Classification: D63, E62, F22, F54, G21, G32, G28, H24, H25, H26, H87, J26, J61, K33, K34, K37

Suggested Citation

Snyder, Laura, Extraterritorial Taxation #7: Inherently Suspect (June 5, 2023). SEAT Working Paper Series #2023/7 (June 5, 2023)., Available at SSRN: https://ssrn.com/abstract=4465558 or http://dx.doi.org/10.2139/ssrn.4465558

Laura Snyder (Contact Author)

Association of Americans Resident Overseas (AARO) ( email )

4 rue de Chevreuse
Paris, 75006

Stop Extraterritorial American Taxation (SEAT) ( email )

Box 19602, Manulife P.O.
55 Bloor St. W.
Toronto, Ontario M4W 3T9

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics