Extraterritorial Taxation #11: Deference or Constitutionalization?

Abstract

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

Instead of practicing deference, federal courts must subject tax legislation to the same constitutional review to which they subject other legislation.

This series of papers demonstrates that the U.S. extraterritorial tax system classifies overseas Americans in a hostile manner and singles them out for oppressive discrimination. The system can and should be subjected to close constitutional scrutiny by U.S. federal courts.

Ultimately, if there were no equal protection limits upon the power of Congress to tax, Congress would have license to violate equal protection guarantees, provided the violations were channeled through the tax system.

Keywords: Extraterritorial taxtion, Citizenship-Based Taxation, Residence-Based Taxation, Expatriation, Constitutionalization, Equal Protection, Federal Courts

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