When did it become too expensive to be American? Or, more to the point for location independent entrepreneurs, to do business with one?
Middle-class Americans are literally being taxed to death.
Americans pay out nearly as much as some European countries, Canadians, and the Japanese. But, when every tax is tallied – federal, state and local income tax (corporate and individual); property tax; Social Security tax; sales tax; excise tax; estate or “death” tax – you have to ask yourself…
…what do Americans actually get for their hardworking earnings?
- Quality health, senior and child care?
- Generous retirement pensions?
- Low-cost, high quality education?
- Affordable housing?
- A civilized society?
That’s because in order to receive these levels of benefits, Americans have to fork out a lot more in out-of-pocket payments, in addition to our taxes. These payments often are in the form of fees, surcharges, higher tuition, insurance premiums, co-payments and other hidden charges. Whether it's in the form of a tax, fee or surcharge, either way it comes out of your pocket.
Give up your U.S. citizenship or become a universal unwelcome illegal alien.
Unlike many other nations, US citizens living abroad are still required to file tax returns every year, and report their foreign bank accounts, investments, and pensions. You don’t get much in return for your tax even when you’re living IN the US, so it’s grinding when you have to pay for non-existent services that you’re not even remotely close to enjoying.
If you want to live outside the US but stay a US citizen, you better pay up!
Because the IRS will get you, sanitized by FATCA. Ostensibly the Foreign Account Tax Compliance Act, but actually just an unjust abortion of American’s rights. Especially those who don’t live within their territorial borders.
And while FACTA has led to a new wave of citizenship renunciation (a record number of 5,800 Americans gave up their citizenship in the first six months of 2020), it has other nasty consequences, including many foreign banks refusing to take on American customers, creating a frustrating situation for expats trying to maintain funds for their lives abroad.
Then there is the other, not-so-visible ramification, which is the theme of my video today:
It’s fast becoming too expensive to have an American business partner. (And what you can do about it)
You might think you’re location independent. But if you need to comply with FATCA you will never really be free.
Because trying to hide is no longer an option.