A "True cost" estimate of untaxed money

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
Number Six
Hereditary Margrave of Mooloosia
Posts: 1229
Joined: Fri Aug 29, 2008 6:35 pm
Location: Connecticut, "The Constitution State"

A "True cost" estimate of untaxed money

Post by Number Six »

http://www.nytimes.com/2014/06/16/opini ... .html?_r=2

In this article economist Gabriel Zucman claims that over 7 trillion in income evades taxation, conservatively.

In a weird twist many the number of Americans who have given up citizenship in order to avoid future tax liabilities has gone up quite a bit: http://online.wsj.com/articles/more-exp ... 1402972439
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)
Kestrel
Endangerer of Stupid Species
Posts: 877
Joined: Sun Jun 05, 2011 8:09 pm
Location: Hovering overhead, scanning for prey

Re: A "True cost" estimate of untaxed money

Post by Kestrel »

No surprise, really, considering they were already living overseas. The effective tax haven they were enjoying for so many years (US Citizen with unreported income) has been shut down. Time to move on.
"Never try to teach a pig to sing. It wastes your time and annoys the pig." - Robert Heinlein
Burnaby49
Quatloosian Ambassador to the CaliCanadians
Quatloosian Ambassador to the CaliCanadians
Posts: 8219
Joined: Thu Oct 27, 2011 2:45 am
Location: The Evergreen Playground

Re: A "True cost" estimate of untaxed money

Post by Burnaby49 »

Kestrel wrote:No surprise, really, considering they were already living overseas. The effective tax haven they were enjoying for so many years (US Citizen with unreported income) has been shut down. Time to move on.
I wouldn't call it a tax haven being enjoyed by evaders in most cases, at least the ones I'm aware of. I know a number of people in this situation and they have, effectively, no more links to the United States than I do. I have an acquaintance whose mother is Canadian, father American. He was born in Texas but family moved here when he was a child. He has lived here since. Educated, married to a Canadian, and employed, and residing in Canada. His income is not "unpreported", he is a Canadian citizen who has always reported and paid taxes here. Considering our income tax rates I doubt he feels he is enjoying the benefits of a "tax haven". Now he finds himself liable for American income tax although he has never (apart from a brief childhood period) lived in the United States or earned income there. I believe he is also going to renounce his American citizenship. Fair enough I suppose but the tax rules forcing this seem stupid to me.

Canadians, and anyone residing in Canada, are taxed on income earned while they are deemed resident here. If they move out they don't fall under Canadian tax law even if they are citizens.
"Yes Burnaby49, I do in fact believe all process servers are peace officers. I've good reason to believe so." Robert Menard in his May 28, 2015 video "Process Servers".

https://www.youtube.com/watch?v=XeI-J2PhdGs