That is the point. The people who have looked at it carefully will have other citizenship as well–and thus they drop their US citizenship. We have seen this happen in the past.
For those who had not thought it through, the proposal to make SS benefits tax-free will mostly benefit high income people. Low income people don’t pay tax on SS benefits anyway. Only people above a certain threshold pay tax on SS. iirc, about 85% of my SS benefits are taxable.
Anyone surprised that high income people reap the most benefit? Anyone? Does the mob grasp that fact?
Steve
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Of course not; they’re the ones paying the most taxes.
DB2
That was the sales line in those “across the board” (with gesture of hand moving horizontally) tax cuts years ago. Except the cuts were a percentage of a percentage, so automatically skewed to most favor the people at the highest marginal rate. Except even that was a lie. Proles received a 23% cut in rates, but the top rate was cut from 70% to 50%, a cut of 30 points or nearly 43%. Yes, the “JCs” tried that “I got the most dollars of tax cut, because I pay such a massive amount of tax in the first place”, but it only works with the majority of Proles, because they don’t understand the math.
Steve
5 Likes
Easier said than done. Also VERY expensive for anyone with any assets. That’s why extremely few people do it.
Not really. Sell the assets to a foreign corporation you own/control and most problems “go away”.
LOL. That’s hilarious. Let’s say you have $100M in stock of a company you founded. Your basis is $10,000 (because you got founder’s stock at a penny a share). When you sell that stock to the foreign corporation, you will owe taxes on that $100M (minus $10,000 basis). Similarly, if you renounce citizenship, you will owe taxes on it. No big difference.
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If the sale happens while a US citizen, then US taxes apply. However, if the sale to a foreign company is on a “cost basis”, then no gains or losses. Then the non-US company will owe no taxes in the US when selling the stock, etc.