The Impact Of The Proposed Warren Wealth Tax (and How It Ineracts With FATCA) On Americans Abroad

<p>March 7, 2012 - Participants Include:</p> <p>Virginia La Torre Jeker - <a href='http://www.twitter.com/vljeker'>@VLJeker</a></p> <p>John Richardson - <a href='http://www.twitter.com/expatriationlaw'>@Expatriationlaw</a></p> <p> </p> <p>In the 21st Century the single  most interesting thing about a person is her/her tax residency. The United States makes US citizenship sufficient for tax residency. The effect of US "citizenship-based taxation" is that the United States, imposes worldwide extraterritorial  taxation, on the non-US income of individuals who are tax residents of other countries and do not live in the United States. (The rules of the US extraterritorial tax regime are <a href='https://www.taxconnections.com/taxblog/the-united-states-imposes-a-separate-and-more-punitive-tax-system-on-us-dual-citizens-who-live-in-their-country-of-second-citizenship/'>far more punitive than the tax regime imposed on Homeland Americans</a>.) That's on the income tax side.</p> <p>In early March of 2021, Senator Elizabeth Warren proposed a US Wealth tax that would apply to the non-US assets (among other things) of US citizens living in other countries. Furthermore, it is drafted in a way that brings the assets of the non-US citizen spouse into the wealth tax net.</p> <p>In this episode John Richardson and Virginia La Torre Jeker discuss how this is intended to work. Americans abroad considering expatriation should take note of the provision that (in addition to the <a href='http://citizenshipsolutions.ca/2015/04/01/renouncing-us-citizenship-how-the-s-877a-exit-tax-may-apply-to-your-canadian-assets-5-parts/'>877A Exit Tax</a>) the Warren wealth tax, would impose an ADDITIONAL 40% (that's not  a typo)  on "covered expatriates" who renounce US citizenship.</p> <p>Virginia has supplied the following example in her blog post <a href='https://us-tax.org/2021/03/07/senator-warrens-proposed-wealth-tax-and-the-40-tax-hit-on-expatriation/%20%20%20'>here</a>, to illustrate the severity of this:</p> <p> </p> <p>"Here’s a ver