A decade ago, Bradley Krae left the United States to teach English in Shenzhen, China. He spends less money and says the has found his own version of the American Dream there.
Unlike other countries America taxes you if you live here or not. The main barrier to people living cheaper lifestyles abroad is their obligation to continue to pay American taxes for what amounts to no benefit.
A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
The main barrier to people living cheaper lifestyles abroad is their obligation to continue to pay American taxes for what amounts to no benefit.
This is a myth perpetrated by rich people. It’s similar to the handwringing about the estate tax. It’s just rich people bitching. The first $133k of foreign earned income is completely tax free. And additionally, any foreign taxes paid can be deducted as tax credits. So if you would normally owe $10k in taxes to the US government, but you paid $8k in taxes while living abroad to a foreign government, you’ll only owe the IRS $2k.
The idea that this is a substantial barrier to middle class people moving abroad for a cheaper lifestyle is just fucking comical. It’s only a problem if you are very, very wealthy. And even the very wealthy don’t end up getting double-taxed. No one who moves overseas for cost of living reasons is going to have to worry about taxes being a problem.
You still have the right to vote as a US citizen living abroad. The only taxation without representation is of people living in the US on a visa or green card.
And residents of DC, Puerto Rico, American Samoa, Guam, USVI, and the Northern Mariana Islands. Probably the rest of the territories too, but those ones have members of Congress that aren’t allowed to vote.
Its actually ironic that people in Puerto Rico don’t even get representation but if you last lived in the 50 states and then go abroad, you can mail your vote.
it’s trading one capitalist place for another. china is just a unit of measure ahead in terms of tech, social programs, healthcare, and such.
i worry that US corps will be pushed to not allow remote work from other countries when enough of us do move the hell away.
Unlike other countries America taxes you if you live here or not. The main barrier to people living cheaper lifestyles abroad is their obligation to continue to pay American taxes for what amounts to no benefit.
Isn’t there a Foreign Earned Income Exemption (FEIE) up to $130k that many US expats qualify for? Specifically:
This is a myth perpetrated by rich people. It’s similar to the handwringing about the estate tax. It’s just rich people bitching. The first $133k of foreign earned income is completely tax free. And additionally, any foreign taxes paid can be deducted as tax credits. So if you would normally owe $10k in taxes to the US government, but you paid $8k in taxes while living abroad to a foreign government, you’ll only owe the IRS $2k.
The idea that this is a substantial barrier to middle class people moving abroad for a cheaper lifestyle is just fucking comical. It’s only a problem if you are very, very wealthy. And even the very wealthy don’t end up getting double-taxed. No one who moves overseas for cost of living reasons is going to have to worry about taxes being a problem.
I thought Americans didn’t like “taxation without representation”…
You still have the right to vote as a US citizen living abroad. The only taxation without representation is of people living in the US on a visa or green card.
And residents of DC, Puerto Rico, American Samoa, Guam, USVI, and the Northern Mariana Islands. Probably the rest of the territories too, but those ones have members of Congress that aren’t allowed to vote.
You can vote overseas…
Its actually ironic that people in Puerto Rico don’t even get representation but if you last lived in the 50 states and then go abroad, you can mail your vote.