SEAT Working Papers Series - Extraterritorial Taxation #8: More Violations of Equal Protection

February 16, 2024 - Participants include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

    SEAT Working Paper Series #2023/8 Extraterritorial Taxation #8: More Violations of Equal Protection

The U.S. extraterritorial tax system violates 14th Amendment equal protection not only because it is inherently suspect (as examined in Extraterritorial Taxation #7), but also because it creates a second class of citizens and is founded and perpetuated in animus.

Available at: https://ssrn.com/abstract=4465589.

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AI Description:

In this riveting podcast, John Richardson hosts a conversation with Laura Snyder and Karen Albert on citizenship taxation and its impact. The podcast sheds light on the discriminatory aspects of extraterritorial taxation, how it often results in the violation of the 14th Amendment, creating a second-class citizenship for Americans residing abroad. Discussed from historical and legal viewpoints, the episode analyzes prominent US Supreme Court decisions and their effects on citizenship taxation, providing listeners with a comprehensive understanding of this complex issue.

The conversation probes deeper through the history of constitutional law, beginning from the aftermath of the Civil War up to modern times. The hosts discuss how laws have been misused to weaponize citizenship and infringe upon the rights of American citizens despite the Supreme Court's ruling against such practices. The inherent biases of American taxation against overseas Americans and their repercussions are also critically assessed.

Legislative impacts of acts like the Foreign Account Tax Compliance Act (FATCA) and Global Intangible Low Tax Income (GILTI) on American expatriates are evaluated in great depth. They explore the controversial perspective of treating citizenship as an insurance policy and questioning the authenticity of citizens' rights. The discussed topics paint a vivid picture of the intricate nexus between citizenship and taxpayer status, potential biases in the tax system, making it a must-listen for anyone keen to understand the complexities of American citizenship and taxation.

The conversation concludes with a thought-provoking discussion on the impending need for reform in the domain of extraterritorial American taxation, urging listeners to reevaluate their understanding of this significant constitutional matter.