Redefining US Citizenship Tax: Taxation Based On Circumstances Of Birth Instead Of Circumstances Of Life (applied to people who don’t live in the USA)

February 1, 2023 - Participants include:

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redomond

John Richardson - @Expatriationlaw

This short podcast is based on the following two recent posts:

Toward A Definition Of Citizenship Taxation

Bottom line: The only contextual meaning that citizenship tax can have is the US imposing tax on people who do NOT live in the United States on income earned outside the United States.

Should tax residency Be Based On The “Circumstances Of Your Birth” Or The “Circumstances Of Your Life”?

Bottom line: The reality is that "citizenship taxation" is really taxation based on "circumstances of birth" rather than "circumstances of life".

Combining the lessons of these two posts, we can reasonably conclude that US "citizenship taxation" means that:

Because of the circumstances of birth, the United States claims the right to impose taxation on income earned by people who don't live in the U.S., on income not earned in the U.S.