Taxation of USC residing abroad

[sarrebal]

Remember the company can cut your job at any time. Unless your skills are so world class that you can get another job overseas quickly, a layoff would make you illegal in that country, without a job, and without a way to move back to the US until you spend the time and money to redo the green card process.

As an executive with an expat contract, it is unlikely and they have to pay you till the end of the contract anyways.
I really want to become a USC but it shouldn't cost me that much money. Who of you wouldn't do the same if given the opportunity?
On another hand, it is really illogic to tax your citizens abroad and to be the only developed country to do so. You give your own citizens (and companies) a competitive disadvantage.

 

[Mr Vertigo]

Since the median income is less than $50,000, and one doesn't get taxed unless one makes more than $87,000, I don't think the disadvantage is quite so big. And I personally wouldn't give up US citizenship so as to avoid paying taxes. But that's why we have choices and are free to make them.

 

[Jackolantern]

As an executive with an expat contract, it is unlikely and they have to pay you till the end of the contract anyways.
I really want to become a USC but it shouldn't cost me that much money. Who of you wouldn't do the same if given the opportunity?
On another hand, it is really illogic to tax your citizens abroad and to be the only developed country to do so. You give your own citizens (and companies) a competitive disadvantage.

It surely is unfair and ridiculous to tax overseas citizens, but that's what they do, and you don't have any power to fight to change that rule unless you become a US citizen.

Note that if your income and/or net worth is above certain thresholds, the US government can still hold you liable for US taxes after surrendering your green card or citizenship, so giving up your green card won't necessarily help you. Maybe they can't enforce it if you stay outside the US, but it could present a problem if you want to return with a new green card in the future.