Has anybody left the US for tax reasons?

8 years ago

The number of people that do this is actually very small. I looked into it many years ago and gave up on the idea. If you leave solely to get out of taxes, they can still tax you for up to 10 years. I moved to a state with no taxes 12 years ago. Things were so-so until Obama raised the rates. Hopefully a republican wins 2016 and implements lower rates. I would be happy with a top rate of 30% or less, under 20% would be a dream.

The key is to live in a state with no state tax and make as much as you can over $118,500(2015) which is the max income they can tax you on for social security, which for self employed is 12.4%. So everything above it is 0%. Of course you still get slammed by Obama 39.6% top rate above $413K-$464K depending on how you file.

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JoeyS

8 years ago

i'm curious.... Not meaning to hijack but what are your basic rates in the us?

In the UK here its top level is 45% which steps up to that in income threshold brackets and then you have to pay national insurance on top of that.

If you earn serious money over here in the uk, you will pretty much take home just over half of your gross. Excluding some creative accountancy of course.

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jimmcdonald909

8 years ago

Originally Posted by JoeyS

i'm curious.... Not meaning to hijack but what are your basic rates in the us?

In the UK here its top level is 45% which steps up to that in income threshold brackets and then you have to pay national insurance on top of that.

If you earn serious money over here in the uk, you will pretty much take home just over half of your gross. Excluding some creative accountancy of course.

Corporation tax is 20%..going to 18% i believe. That's pretty good.

Russia 10%

Dubai/tax havens 0%

make your choice.

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seasoned 8 years ago

Originally Posted by jimmcdonald909

Corporation tax is 20%..going to 18% i believe. That's pretty good.

Russia 10%

Dubai/tax havens 0%

make your choice.

Well, I don't know how Russia and China work. They obviously aren't the normal communism for everyone, though BOTH limit speech and actions, and have rules that are restrictive that you must follow. And that IS a tax. Dubai, and other similar areas, ALSO have various rules that can be bad, especially if you are female, not born in the culture, not a muslim, etc....

Steve
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whateverpedia

8 years ago

Originally Posted by jimmcdonald909

Corporation tax is 20%..going to 18% i believe. That's pretty good.

Russia 10%

Dubai/tax havens 0%

make your choice.

You can kiss your Bill Of Rights goodbye, particularly the 1st and 2nd amendments, if you move to either of those places.

If you do renounce your US citizenship and move to either of them and then change your mind, you can kiss any chance of returning goodbye as well.

If you're married, ask tour wife whether what she will have to endure in a place like Qatar is worth having to pay no taxes.

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Joe Mobley

8 years ago

Originally Posted by whateverpedia

You can kiss your Bill Of Rights goodbye, particularly the 1st and 2nd amendments, if you move to either of those places.

Or if you stay here.

Joe Mobley

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Joe Mobley

8 years ago

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Panama

This is not one of The World's Cheapest Destinations for travel, but it is for living. That's thanks to great affordable health care, terrific residency incentives, and generally reasonable living expenses. On the health care side, it's not unusual to pay $20 to see a doctor (or $45 for a house call), $35 to see the dentist and get a cleaning, $350 for a crown, or a shade over $10,000 for surgery at the best hospital, including a couple nights in a bed there.

Panama has the world's best pensionada program for retirees, but really you don't have to be retired or even old. You just need to show $1,000 a month in income and you can import your household goods, import or buy a car tax-free, and get a long list of discounts. These include 50% off recreation and entertainment activities, 30% off inter-city buses & trains, 25% off flights, 30-50% off the rack rate of hotels (depending on day of the week), 25% discount in sit-down restaurants, 15-20% off medical costs, 10% discount for prescription medicines, and a 25% discount on electric and water bills. They use the U.S. dollar here, the government is relatively stable, and there's a solid banking system in place. Copa Airlines is based here, so flight connections are good, and there's a lot to see and do in the country and in nearby ones.

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If a US citizen lives out of the country for 330 days in any 12 month period, their first $100,800 (for 2015) in earned income is not taxable under the Foreign Earned Income Exclusion act.

http://1.usa.gov/1LPiZS9

Joe Mobley

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seasoned

8 years ago

Originally Posted by JoeyS

i'm curious.... Not meaning to hijack but what are your basic rates in the us?

In the UK here its top level is 45% which steps up to that in income threshold brackets and then you have to pay national insurance on top of that.

If you earn serious money over here in the uk, you will pretty much take home just over half of your gross. Excluding some creative accountancy of course.

In the US there are a TON of hidden taxes Not even counting what the Danish would consider sin taxes, or the "income" taxes or the luxury taxes, or the sales taxes, or things that are LIKE sales taxes, but not called that, or all the taxes on health, etc...... etc..... etc..... How about all the taxes on various businesses, or the scam on loans that ends up raising the cost for all on homes, cars, rents, etc....

So you want to figure out how much YOU may pay? Describe who you are, what you have paid, how you have been paid, health, etc.... and maybe someone can approximate! MY GOD, I got one ailment, and the politics is costing me THOUSANDS of dollars a year! JUST FOR ONE DRUG!

Steve

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jimmcdonald909

8 years ago

Originally Posted by DIABL0

The number of people that do this is actually very small. I looked into it many years ago and gave up on the idea. If you leave solely to get out of taxes, they can still tax you for up to 10 years. I moved to a state with no taxes 12 years ago. Things were so-so until Obama raised the rates. Hopefully a republican wins 2016 and implements lower rates. I would be happy with a top rate of 30% or less, under 20% would be a dream.

The key is to live in a state with no state tax and make as much as you can over $118,500(2015) which is the max income they can tax you on for social security, which for self employed is 12.4%. So everything above it is 0%. Of course you still get slammed by Obama 39.6% top rate above $413K-$464K depending on how you file.

which states are those? Best toy focus on making more and just pay the taxes.

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alycium 8 years ago

Originally Posted by jimmcdonald909

which states are those? Best toy focus on making more and just pay the taxes.

Oregon is one example of a no tax state. I lived in Portland Oregon for a year and you don't pay taxes on food or anything like that. But, the cost of living is a bit higher, so, it really just evens out..
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jimmcdonald909

8 years ago

US citizens are taxed where-ever they live.You have to give up your citizenship.

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hardraysnight 8 years ago

Originally Posted by jimmcdonald909

US citizens are taxed where-ever they live.You have to give up your citizenship.

cheap price to pay
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seasoned 8 years ago

Originally Posted by jimmcdonald909

US citizens are taxed where-ever they live.You have to give up your citizenship.

The IRONIC thing is that this only affects the middle class! The POOR are subsidized, BY THE MIDDLE CLASS, and the RICH JUST DON'T CARE!

EVENTUALLY the US will get SO bad, that people would be GLAD to say GOOD RIDDANCE!

Even SWEDEN is starting to look like an option. They have gone SOOOOOOOOO FAR to one side, and have been SO IDIOTIC that many there are suddenly changing! They know that, if they don't SOON, Sweden will be GONE! Say GOOD BYE to the language, the country, the whole culture AND, IRONICALLY, to the attitude they once had, and love! LUCKILY, the "refugees" are turning up the temperature too quickly, and some of the frogs are getting hopping mad.

Steve
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DURABLEOILCOM

8 years ago

Originally Posted by TLondon

Any warriors here have left the US to live somewhere where they can pay less taxes? Or maybe you guys researched this? Any recommendations for the most tax friendly countries that are also fun to live in?

With the tax year coming to an end, and calculating how much cash I'm giving away, I'm considering moving somewhere else to pay less.

Has anybody looked into this? Is it possible to work outside of the US with business models like affiliate marketing (esp. Amazon Associates), eCommerce, FBA, etc.? What places have you been looking to move to?

It is a lot simpler to work harder to make extra money than to move your life to another country.

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TLondon 8 years ago

Originally Posted by DURABLEOILCOM

It is a lot simpler to work harder to make extra money than to move your life to another country.

Who's stopping you from working hard in a place where you also pay less in taxes?
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- BigFrank Banned 8 years ago
  
  I was going to respond to the wisely deleted post. I guess my reputation precedes me, so I'll just close with, "You ain't left, yet???" lol
  
  Cheers. - Frank
  
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klocsmann

8 years ago

me too, i left the US for tax reason

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hardraysnight 8 years ago

Originally Posted by klocsmann

me too, i left the US for tax reason

pity you never learnt english while you were there
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agc

8 years ago

Originally Posted by TLondon

Any warriors here have left the US to live somewhere where they can pay less taxes? Or maybe you guys researched this? Any recommendations for the most tax friendly countries that are also fun to live in?

What a utter and complete jackass move. Where else on the planet would you actually want to live which you can actually afford to live safely, where you can't afford to pay your US taxes?

Everyplace I would actually want to move to costs so much that my being able to go would mean that my US taxes are inconsequential to me. IOW, I would need to be making 1M a year to go there, and if you're making 1M a year and you're crying about paying your 450k in taxes because like living on 550k is just so unfair, then you're a punk a$$ b* who needs to be slapped back to reality.

And half these people are all long term capital gains and unearned income at 15% on top of it.

God some of these whining republicans just make me sick.

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HealthBuff 8 years ago

New Zealand !!!
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agc

8 years ago

To my point above, you can't go by the posted comparative stats because those stats assume you go there and live like a native.

Which you can't do.

You don't look like a native, and you probably can't make yourself look like a native. So you will always be a target, and will require extra security. Because the native thugs ill always recognize you, and target you. And THOSE neighborhoods don't show up in your charts of cost of living. And living a life locked in your villa and shuttling between safe places in armored transport just doesn't sound like "freedom from taxes" to me.

Roving thieves on motorbikes... at least they're not kidnapping for ransom.

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Joe Mobley

8 years ago

Originally Posted by agc

To my point above,

Which is incorrect.

Originally Posted by agc

you can't go by the posted comparative stats because those stats assume you go there and live like a native.

Which is a false assumption.

Originally Posted by agc

Which you can't do.

Which is not needed.

Originally Posted by agc

You don't look like a native, and you probably can't make yourself look like a native. So you will always be a target, and will require extra security. Because the native thugs ill always recognize you, and target you. And THOSE neighborhoods don't show up in your charts of cost of living. And living a life locked in your villa and shuttling between safe places in armored transport just doesn't sound like "freedom from taxes" to me.

Sounds like a bunch of BS justification for being afraid.

Roving thieves on motorbikes... at least they're not kidnapping for ransom.

Thankfully there is no need for gated communities in the US.

If you like the country you live in, great! If not, great!

There are upsides and downsides to staying or going? Make some decisions and adjust accordingly.

Joe Mobley

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agc 8 years ago

Originally Posted by Joe Mobley

Thankfully there is no need for gated communities in the US.

This is correct. There is no need for them. There is merely a desire for them.

Except for those who make their money by seeking out fame through the media. They actually need a place to escape the paparazzi, so they get shuttled in and out in their blacked out limos for anonymity. Which is a weird way to enjoy one's "freedom". For them, I can see living in Ibiza, Nice, Monte Carlo... not to avoid taxes, but just to be able to live like normal people.

As to leaving the US because you can afford to, and you found someplace you'd rather be, more power to you.

But leaving because you don't want to pay US taxes? That is still a jackass move. Excepting for real estate and in some states cars, you don't pay US taxes just for having money, you pay taxes for making more money.

So being middle class and crying about giving up 30-45% of what you make, in an economy where you are making more, and are able to live better for what you have left (yes, even in this job market, and so far, yes, even in this ill distributed return to feudalism), than just about anywhere else on earth is a lot of sniveling and whining.

Go ahead. Live somewhere else without taxes. You'll make less, and have to live without the basic safety we more or less take for granted in the US. This isn't bucolic Switzerland we're talking about here. Those places pay even more taxes than we do.

No... we're "avoiding taxes" so it will end up being somewhere "emerging markets" at best. Sure the rent will be lower... but just about everything else will cost more, and sporadically available if at all. But hey, don't take my word for, don't do any long hard research and thinking for yourself. Pack up the kids and go. More power to you. Joe Mobley says I'm wrong, so hey, nothing to worry about, go on and go for it. Argentina, here we come.

And if you "have" money and your money is making money while you just lay around in your jammies... wtf are you whiniing about the 15% capital gains tax for?
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whland

8 years ago

There are some beautiful countries out there. But I wouldn't move there because of taxes.

I'd move because I wanted to live there.

Right now I live where I live because I love it here.

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Has anybody left the US for tax reasons?

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