Why not to stay where we like to be, if we have enough money to pay taxes Actually clean environment, safety, healthcare, civilized society, nature and weather (for me) - it is more important than taxes (if they are reasonable of course).
When you make quite a lot of money, you get a lot more opportunities. There are so many nice places with a lot lower taxes. Open your eyes, try something new.
Indeed. As of the loyalty to the homeland bit, many of the arguments put forth here just stem of perception that life outside the homeland must be difficult and with lower standards with little expérience to back it up. The way i see it when the homeland has a policy of high taxes, its culture starts to feel of theft and parasitism and there is very little reason to feel any patriotism. As previously mentionned there are many ways for european to live within the EU, enjoy a usually nice quality of life and pay moderate taxes. For those who have kids it´s a bit more tricky as to avoid problems kids have to live and go to school where one is fiscal resident and language issues become more important as it's more difficult to settle where wife and kids don't speak the local lingo.
Also i'm afraid many of you are missing how much money is lost to taxes when u take into account compounding of one's tax savings over the years.
I more than agree this. In the long-term like 40 years, most SHOULD pay a lot of tax. At least 20% of capital gain, and also trading(brokerage+trading tax) In many case, over 40 years, tax rate(=tax/(profit before tax)) can be as MUCH as 100%. Someone whose tax rate of 50% can be OK. Even someone shows bigger than 100%, implying that he IS WINNING before tax, although he lost now after tax, in his account. So every trader should keep track of ALL TAX pay until today, in his life
A few reasons from what I'm familiar with: First, as has been mentioned, US citizens are taxed an their world-wide income. Second, just trading through a foreign business entity would likely be considered a Foreign Personal Holding Company and income would still be taxed even if you don't repatriate it. If you want to reduce taxes, you can stuff a lot of money into a solo 401(k) or even set up a pension fund for your trading business. In this way, you can peel off significant amounts of pretax dollars to a tax sheltered account. Especially if you use a defined benefit pension plan. Then move to Wyoming where the income and corporate tax rate is zero.
I am not sure, but in Wyoming, there might be NO state income tax. I wonder if there IS FEDERAL INCOME TAX, same as other US citizen, isn't it? My guess is that Wyoming want many people to move there. Lowering tax make him to come there. There might be other states where there is NO STATE INCOME TAX, isn't it? **************************************************************************** Federal tax bracket is shown at http://www.bankrate.com/finance/taxes/2013-tax-bracket-rates.aspx State income tax http://www.tax-rates.org/taxtables/income-tax-by-state / where there is NO STATE INCOME TAX , for example, Alaska, Nevada, Washington, Wyoming, Texas, Florida.
Correct, state tax rates for these are zero but you still have a federal liability. Other states have zero tax rates also. I'd love to retire in Wyoming, go fly fishing and hiking.
We can certainly conclude that the US is not the land of the free tax wise. To tax citizenship no matter where you reside is just plain crazy.
Probably it might be because someone need more money (than before) to maintain his life. Or some institution need the money to maintain its building too.