Posted on 09/08/2014 10:14:55 AM PDT by Kaslin
Since I spend considerable time defending tax competition, fiscal sovereignty, and financial privacy, people sometimes think I can give competent advice on how best to protect one’s income from the IRS.
Hardly. Like most people in Washington, I’m all theory and no practice.
Besides, when people ask me about the ideal tax haven for an American citizen, I generally don’t have good news.
I explain that they are already living in a very successful tax haven, but then given them the bad news that only nonresident foreigners can take advantage of America’s tax haven policies. Though we should still be happy about being a haven since the favorable tax rules for foreigners have attracted lots of investment.
With the erosion of financial privacy, the IRS has considerable ability to track your money around the world, so moving your money to an overseas tax haven may not work. Even Switzerland, for example, has been bullied into weakening its human rights laws so that they no longer protect the privacy of nonresident investors.
Physically moving (your body and your money) to a foreign fiscal paradise such as Bermuda, Monaco, or the Cayman Islands doesn’t provide much value since the United States has the world’s most aggressive and punitive worldwide tax system. You’re basically treated by the IRS like you’re living stateside.
You can join thousands of other people and give up your American passport. But even that step has big downsides since the IRS imposes very nasty exit taxes, notwithstanding the fact that the United States is a signatory to international agreements that supposedly protect the right to emigrate without undue hassle.
But there is still one legal and effective way of dramatically reducing your federal tax burden.
(Excerpt) Read more at finance.townhall.com ...
Too bad we can’t turn our country into a tax have.
Think of how many TRILLIONS of dollars which could be put to work here in the US>
Think of how many tens of millions of people could be put back to work if that happened.
Meant to say tax haven
Why pick one country? Why not be a PT?
Permanent tourist. Practically transparent. Privacy trained. Perpetual traveler. Passing through. Etc.
The best tax havens for those living and working in the U.S. is Mexican, Guatamalan, or El Salvadorian citizenship.... apparently.
M4L
Bookmarking this puppy. Thanks for the post Kaslin.
A government nearly $18 Trillion in debt and with 1000 agencies, and all the government dependents - will need money. They don’t want to steal it from you, but they will have they have to.
My best guess - continued inflation and zero interest rates and money debasement to steal wages and savings. If the SHTF, then capital controls and confiscation of retirement plans. After that, various “one time” wealth taxes.
Then one day you will look around and think - when did we become Bolivia?
The best tax haven for American citizens?
That’s easy just be a democRAT and get a job in the Obama administration, many of them never pay taxes as Holder and the IRS close their eyes.
I’d think your analysis is correct.
The only upside I see on the financial outlook is that the Death Panels will be a big plus for Medicare and Social Security. Every year sliced off the lifespan is a big plus for their solvency.
Haven’t you heard ?
Get yourself a sleazy lawyer and apply for S/S disability. You’ll get a check til the money runs out.
A tax haven would be tax heaven.
The article points out that the US is a tax haven, just not for Americans.
CAr waSh
Yeah, but a moving target is harder to pin down. Multiple banks in multiple countries where possible. Even under multiple names.
Peter Schiff stated recently he moved his Euro pacific Capital group to San Juan in Puerto Rico, where his capital gains would be exempt from federal taxes and only subject to a 4% rate by the local commonwealth.
Been to LA lately?
Add in the fact that Puerto Rico is exempt from Obamacare
The voting booth. Vote the rats and rhinos out.
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