A spicy troll that any country could do.
A spicy troll that any country could do.
US federal tax code allows one to deduct any foreign taxes paid.
So, any country in the world could offer US citizens the option to claim their income as taxable in that country’s jurisdictions and provide them paperwork needed by US tax authorities.
Thus instead of funding the Trump government, the money would go to governments who have policies that you support (say Ukraine for example) and you would still be completely complying with US tax laws but also significantly reducing the amount of money that you give to the federal government.
This sounds like some sort of Sov-cit logic... This just results in slightly less than double taxation...
Being able to deduct foreign paid taxes just removes that amount from your taxable income. The remainder of your income would still be taxable in the US. So unless you are literally giving all of your income to another nation as tax, you would still be paying US taxes in addition to these foreign taxes.
It would only work if the other country claimed you had paid your entire earnings in foreign taxes, without actually charging you. Which would be flagged and figured out pretty quick by the IRS.
Plus Congress could pretty quickly pass a law closing any loopholes found but the announcement doesn’t have to result in that country actually doing anything beyond announcing that they are looking into it.
No your honor, I was not committing tax evasion. I was trying to "troll" the "MAGA" government.
Notice that this would be something that a foreign government could do as a troll.
Literally state that they are looking into it as an additional source of revenue and will be offering it to the American public.
I fully expect that no country would actually do that but announcing that they are looking into it.