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American Economist Calls for end to FATCA and Citizenship Based Taxation
Kurt Couchman described the US' Extraterritorial Tax System as “Ludicrous”
Full article at www.nationalreview.com
If you've just returned from your vacations, it's worth reading up on a recent article written for the National Review by Economist and VP of Public Policy for 'Defense Priorities' Kurt Couchman, which was posted mid-way through August and robustly argues against FATCA and Citizenship Based Taxation.
Writing the article, Couchman argues that "Individual Americans should ... pay taxes based on residence, rather than citizenship", whilst also highlighting ongoing problems associated with FATCA, the Foreign Account Tax Compliance Act, which has led to Americans abroad renouncing their citizenship and banks refusing "to serve Americans to avoid the compliance costs".
As well as calling for a Residence Taxed Based system, Couchman goes one step further by noting the importance and value of Americans who reside outside of the USA.
He writes that Americans abroad "are a broad cross-section of our fellow citizens. Some are teachers or medical researchers. Some are missionaries or humanitarian workers. Others conduct diverse business activities, from software development to manufacturing to resource production to sales to shipping and logistics."
He goes on to write that "In many ways, they are better ambassadors than our diplomatic corps. They are more likely to interact with regular people in the countries where they live. Sometimes they marry or adopt locals, putting down roots in their communities. Their objective is almost always peaceful, and they cost taxpayers nothing."
You can read the full article at https://www.nationalreview.com/2018/08/american-expatriates-deserve-territorial-income-tax-system/.