It’s somewhat accurate to say “every penny they make is taxABLE to Uncle Sam” which is different from saying 100% tax rate. Americans living outside the US still need to file a tax return and report all their income, and pay tax on it to the US, even if it is from a foreign source. That said they could claim the foreign tax credit if they paid tax to a foreign regime on that income already, or the foreign income exclusion under some circumstances which would reduce their taxable income to the US.
It’s somewhat accurate to say “every penny they make is taxABLE to Uncle Sam”
It’s completely meaningless but hyperbolic to say that because that’s the way taxes work in every country. No country randomly ignores random amounts of income from taxation. Also, there is the concept of tax exempt income and the fact that pennies and dollar fractions are completely ignored on tax forms.
Calm down professor. The US is one of the only countries in the world to tax worldwide income, even if they are a nonresident of the US. That is NOT how it works in every country.
It’s somewhat accurate to say “every penny they make is taxABLE to Uncle Sam” which is different from saying 100% tax rate. Americans living outside the US still need to file a tax return and report all their income, and pay tax on it to the US, even if it is from a foreign source. That said they could claim the foreign tax credit if they paid tax to a foreign regime on that income already, or the foreign income exclusion under some circumstances which would reduce their taxable income to the US.
It’s completely meaningless but hyperbolic to say that because that’s the way taxes work in every country. No country randomly ignores random amounts of income from taxation. Also, there is the concept of tax exempt income and the fact that pennies and dollar fractions are completely ignored on tax forms.
Calm down professor. The US is one of the only countries in the world to tax worldwide income, even if they are a nonresident of the US. That is NOT how it works in every country.
Here’s a pretty good article about it from the WSJ if you want to educate yourself on the subject: https://www.wsj.com/articles/BL-WB-34630
We all know that and this is not what is being discussed genius.
Taking into considering “every penny” of your income IS how it works in every country.