The Foreign Account Tax Compliance Act (FATCA), which was enacted under Obama, deputizes overseas financial institutions to snoop on and collect taxes from Americans, making banks reluctant to take on U.S. clients.
If you’re an American living and working abroad, you report your income in that country and pay taxes to that government. You must then pay U.S. taxes on the same income. Yes, there is an exclusion for foreign earnings of about $100,000. And yes, you get a tax credit for the foreign taxes paid. If you’re lucky, filing the U.S. return is simply a time-consuming hassle. But depending on your income level and location, the tax credit may be too small to let you avoid paying extra taxes to the IRS. And if your assets are above $300,000, there are additional forms to file and taxes to pay.
A long list of policy positions and explanations that will give candidates ideas to use for their own positions.
[T]he tax will hit Seattle residents who have very little, if any, wages or salaries, like my 98-year old co-plaintiff Dorothy Sale. Why? Because in a clumsy and blatant attempt to defy state law, our city council imposed the illegal tax on total income, which includes both net income and capital gains. In other words, anyone selling their home could be hit by both the current 1.78% excise tax Seattleites currently pay and one of the highest city income taxes in the country.