Discussion about current events, culture, independent candidates, business, education, travel, death and taxes, global mobility, citizenship and residence by investment options, Americans abroad, FATCA, CRS, citizenship renunciation, Green Card abandonment, citizenship taxation, PFIC, GILTI, foreign trusts and more ...
Tuesday Jan 24, 2023
Tuesday Jan 24, 2023
January 24, 2023 - Participants Include:
John Richardson - @Expatriationlaw
On January 10, 2023 the "Fair Tax" - H.R. 25 was introduced into the House. The has provided a long overdue opportunity to rethink what taxation is for, how it should work and how it should be enforced. It's important that individuals do NOT rely on their Republican or Democrat representatives to explain the "Fair Tax". Taxation is too important to be left to the political parties.
Tax reform is about serving the interests of the American people and NOT the American political parties.
Taxation is NOT and should never be a partisan issue!
Some background ...
On March 27, 2022 I hosted Jim Bennet of "Fair Tax" and learned about the "Fair Tax Proposal". On April 13, 2022, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard. The April 13, 2022 podcast can be heard here. On June 4, 2022 I hosted Steve Hayes
Mr. Hayes and Mr. Bennet are the primary movers and creators of H.R. 25 "The Fair Tax Act of 2021" which can be viewed here.
So, what is the "Fair Tax" movement?
At the risk of oversimplification, H.R. 25 proposes to replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of Title 26 (The Internal Revenue Code) with one comprehensive consumption tax.
If enacted the "Fair Tax" would create a U.S. tax system that:
- was a territorial (tax imposed on activity in the US only) based on a consumption tax (tax imposed on consumption and not income)
- allowed certain low income people to apply for tax abatements
- made the U.S. a more attractive location for foreign investment and business activities
- ended the tax filing requirement for individual taxpayers (and therefore ended the "Regulatory Oppression" experienced by individuals in general and Americans abroad in particular)
- ending the relevance of "tax residency" because taxation would be based on spending only
- solved the problems of citizenship tax as experienced by US emigrants and accidental Americans
The adoption of the "Fair Tax" would result in a major change in US society. As the great tax historian Charles W. Adams taught:
As goes taxation, so goes civilization!
I strongly suggest that Americans abroad support the "Fair Tax" movement!