High Taxes, Abusive Enforcement Causing Businesses, Citizens to Flee America
The United States has much higher corporate tax rates than other industrialized countries do, and increasingly, the IRS uses more aggressive enforcement tactics than foreign tax authorities use.
The United States stands alone among industrialized countries by requiring U.S. businesses to pay taxes on profits from overseas operations and investments — in addition to the taxes paid to foreign governments.
Ordinary citizens permanently living and working abroad also must pay U.S. and foreign taxes and face burdensome dual filing requirements and abusive penalties. U.S. tax laws can impose penalties of more than $1 million on unpaid taxes of as little as $20,000.
U.S. bank reporting requirements to combat terrorism and tax evasion are so much more burdensome than those in European countries are, and they impose such terrible penalties for unintentional reporting errors that foreign banks will not permit smaller U.S. companies and citizens to open checking accounts.
More and more businesses and citizens will still want to leave America. And Congress appears not to have the courage to take on America’s KGB — the IRS.
See this article for more on how US tax policies are sabotaging its global economic competitiveness.
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