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Tuesday, January 14, 2014

Tax issues for U.S. citizens living in Canada

If you are a U.S. citizen living in Canada, you still have a tax obligation to the U.S. government. One of only two countries that tax their citizens no matter where they actually live, the U.S. is more active than ever in making sure expatriates pay to support their government's ambitions. To keep this from ever becoming a "taxation without representation" issue, they still allow you to vote in your last state, county and city of residence prior to leaving the country. Isn't that nice?

For those living in the U.S., it must gall them that non-residents can vote to impact policies that they will not be subject to living with. For those living outside the U.S., I can tell you it's galling to pay to support governments and programs that I get absolutely no benefit from.

The primary exception here is that when the time comes, I will be eligible for Social Security. Granted, the amount I will receive doesn't nearly match the hit I take on a yearly basis from U.S. tax law, but there you go. Until Congress stops picking the pockets of expatriates, it's just the way it is. The only people the U.S. allows to shelter their income against taxes are those who own and run corporations - and politicians.

There's an old saying that applies here: "It must be nice to be a Roman." 

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