Why Americans are losing out on global opportunities?
Being a U.S. citizen is one of the most powerful things for an individual. So given that fact, you’d expect an American citizen to have the best opportunities in the world. It turns out that it isn’t exactly true at all. Americans are one of the most discriminated nationalities when it comes to hiring people outside of the US. That isn’t because many companies hate America by any means, it’s due to the laws created by the US government that forces companies to discriminate against American citizens. In the growing rivalry with China, it’s important that Americans have global opportunities to be able to increase diplomacy for the United States.
The Price of Citizenship
Being an American citizen may feel good with all the visa free traveling you can do and being a person of one of the world’s most powerful nations. Until you realize that the United States is the only country other than Eritrea that taxes its citizens no matter where in the world they live. So as a U.S. citizen you will still be taxed even if you chose to live on Mars which is a very silly thing. While lecturing other countries about human rights, the U.S. has committed human rights violations itself which goes against the Freedom of Movement clause in the UN Declaration of Human Rights by choosing to tax its citizens abroad no matter where they are and use means of extortion and threats to do so. More foreign companies are rejecting American applications to avoid upsetting them and creating miserable lives for them. Foreign financial institutions are mainly refusing to accept American clients due to high compliance costs of U.S. persons and how it is a bigger burden on them. Being an American citizen gets rid of your right to live wherever in the world you want besides the U.S.
Modern Day Slavery
This is another modern day slavery where you are taxing someone no matter where they live even if they don’t use any social programs from the U.S. or American roads. The U.S. government using extortion and threats to get citizens to pay up is another proof that the U.S. tends to be a hypocrite because we tell other countries to respect their citizens while we do the totally opposite. Lots of Americans overseas are finding it difficult to raise capital for their startups or have the opportunities to invest overseas due to this form of slavery. In the U.S. the government can’t search your bank account without any form of court order while they are able to search any American’s bank account overseas showing that the Constitution doesn’t apply to Americans overseas. Slavery is never okay and Americans fought a civil war over this, but yet the U.S. government supports a form of slavery which forces double taxation upon citizens even though they are already paying taxes to another country. I left the U.S. for Canada as a student due to cheaper tuition and better opportunity in the tech startup world. I am also a dual citizen of both U.S. and Canada so it all seems good. But the U.S. has given students high amounts of debt and with taxation abroad they have started taxing students that try to find cheaper solution to get education which is one of the human rights violations the U.S. keeps on committing all the time. People also leave the U.S. due to other countries having cheaper healthcare and the U.S. wants to penalize them with taxes. Yet these overseas Americans have no one to represent them and no one advocating for their interests so it’s simply taxation without representation which is the same case we fought against Britain for to gain our right to independence.
Impact of Citizenship-based Taxation
The thing about a citizen of another country abroad is that they are able to advocate for diplomatic relations for their home nation and it’s the best way to achieve peace. Our biggest arch-rival China has companies that have offices around the world and hire Chinese there to advocate for diplomacy of Chinese investments and to make sure that they can keep on running the offices to keep it in line with the company’s ambitions. More Chinese citizens becoming successful entrepreneurs and creating jobs in other economies are becoming well aware. The reasons why Americans are at a disadvantage here is due to citizenship based taxation. By taxing your citizens abroad no matter where they live, you lose the ability to have them advocate for the U.S. diplomatically and you lose the ability to see American influence expand since there will rarely be an American entrepreneur out of America creating jobs for many others. So currently China will have more of a playing field to push its influence forward and get rid of America’s global influence.
How To Respond To This Issue
There are many solutions. The best one is to raise awareness about this and show the public the consequences of this as I’ve mentioned. If we act too late, we’ll lose to China and it’ll be ourselves that we’ll regret. Write letters to your representatives and tell them why getting rid of FATCA, citizenship-based taxation, FBAR reporting requirements for overseas Americans will be a good thing and feel free to borrow some key points I’ve made here or use some of your own points for making a good argument. Of course we are seeing Americans renounce their citizenship as well and cut ties to the U.S. to invest in other countries which means that the U.S. will miss out and those nations will benefit. The only way to escape this crazy taxation in which the U.S. government has gone totally insane is to renounce your American citizenship and have a second citizenship to back you up.
Why is this issue so important?
This issue may be one of the most important issues for Americans that are deeply concerned about the waning of America’s influence. This citizenship taxation will end up being one of the keys for preventing diplomacy between Americans in other nations that are there to also advocate for America’s interests. It is also a bit cruel to enact tax using threats and extortion by a country that you no longer live in. This is also a good opportunity for your kids and for yourself to open access to global opportunities as many companies overseas are denying U.S. citizens any sort of job in other countries (besides the U.S.) due to citizenship-based taxation as well as FATCA and FBAR that gets imposed on overseas Americans costing companies and foreign financial institutions (FFIs) lots of money in compliance costs.
My Take On This
I am a U.S. citizen that is behind an AI project based in Canada. In a China-U.S. race it would be crucial for me to be on the side of the U.S. but I won’t just magically remain loyal to the U.S. if they use means of extortion and threats to come after the money I earn in another country. No one wants to invest in my firm as a U.S. citizen, no one prefers to hire U.S. citizens as an employee, and with the U.S. government harming the U.S. citizens overseas, I don’t think I will be a U.S. citizen for long. I have given myself time and patience. I will wait until April 2019 to see if there is any changes to this. If I see no changes then I’ll gladly renounce my U.S. citizenship. By the time we turn the fund into an active business, we will consider opening a R&D center in China since their citizens can collaborate openly with us and come to Canada to work on researching good technologies for our project while the U.S. citizens won’t be able to do so due to citizenship taxation. By no means am I threatening America in any way. All I’m saying is that the U.S. citizens are at a major disadvantage when it comes to global hiring for companies and influencing the world by advocating for American interests. This will influence us to also not consider any job application of a U.S. person and eventually ship some research jobs to China where they don’t have this crazy law that can give us lots of headaches and compliance costs for our employees. With all this, Congress you have 6 months left!