Category Archives: FairTax

Both the FairTax people in the United States and Americans abroad outside the United States are fighting for changes in U.S. tax policies. A move to the FairTax system (national consumption tax) would make U.S. citizenship taxation irrelevant and solve the problems experienced by Americans abroad.

FAIRTax – The Solution For America And For Americans Abroad – Jim Bennett

If You Understand It! You’ll Demand it! – Learning About The #FairTax with Jim Bennett and Steve Hayes of @FairTaxOfficial

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When it comes to the “Fair Tax”

If you understand it! You will demand it!

If You Understand It! You'll Demand it! – Learning About The #FairTax with Jim Bennett and Steve Hayes of @FairTaxOfficial https://t.co/uFRjeoCVXY via @expatriationlaw

— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) August 21, 2023

The problems that Americans abroad have with the U.S. tax system is that it is primarily an “income tax” system. All Americans deal with the complexity of the Internal Revenue Code. But the U.S. income tax system is particularly punitive for Americans abroad. This is because the U.S.taxes U.S. citizens on their worldwide income regardless of where they live in the world. The “FAIR Tax” is a consumption based tax. The consumption based tax would be applied only to sales in the United States. In simple terms: U.S. citizens abroad would no longer be taxed by the United States unless (and to the extent) that they made purchases in the United States. Their problems would vanish.

Understanding the Fair Tax

Over the last few years I have had the opportunity to host (sometimes separately and sometimes together) Jim Bennett (Grassroots Coordinator & Secretary), Steve Hayes (Chairman and President) and special guest Joe Howard on my podcast. The discussions have been fascinating and have shown the opportunities that the FAIR Tax affords ALL Americans (but especially Americans abroad).

Highly recommend these discussions (they are listed in reverse order):

Americans abroad who support the end of U.S. citizenship taxation should follow:

– @FairTaxAbroad

– Facebook.com/groups/FairTaxAbroad

John Richardson – Follow me on Twitter @Expatriationlaw

July 5/22: An Opportunity To Educate Resident Americans About The Horrors Of Citizenship Tax

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Updated July 5, 2022 …

Great discussion with Bob Paxton and Bob Scarborough:

Why #Americansabroad and @USVotersAbroad should be supporting the #FairTax and @FairTaxOfficial. Join @FairTaxAbroad! https://t.co/dvL1GfzynK

— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) July 6, 2022

An Opportunity To Educate Resident Americans About The Horrors Of US Citizenship Tax

.@USVotersAbroad: An appropriate "Independence Day" message from Steve Hayes of @FairTaxOfficial: "The Chairman’s Report July 1, 2022" Note that the "#FairTax" will end the income tax, @citizenshiptax and all the problems experienced by #Americansabroad! https://t.co/sB55yf9gaw

— Fair Tax Abroad – Solving Tax Problems of Expats (@FairTaxAbroad) July 2, 2022

First a special thanks to Joe Howard who arranged for this opportunity.

On Tuesday July 5, 2022 at 8 pm EST (20:00) I (John Richardson) will appear on the Fair Tax Power Radio Show. The Fair Tax Power Radio Show is hosted by Bob Paxton and Bob Scarborough. The show is for the purpose of educating US residents about the (1) the problems of the U.S. income tax system and (2) the solution by moving to the Fair Tax. You can learn more about the Fair Tax in my recent blog post found here and on the Fair Tax site. I suggest that you follow their Twitter feed at @FairTaxOfficial.

The Topic: How The US Tax System Disables Americans Abroad From Financial and Retirement Planning and How The Fair Tax System Would Solve This Problem

You understand the problem. You understand the pain. You understand the fear. You understand that you may be forced to renounce U.S. citizenship.

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As Goes The “Fairness Of Taxation”, So Goes Civilization: It’s Time To Consider The “Fair Tax”

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Introduction

#FairTax policy is good policy. Why @FairTaxOfficial means restoring "freedom and dignity of the individual" (as well as creating a "fairer" tax system). Imagine a world where #Americansabroad were no longer #GILTI and @citizenshiptax would be meaningless. https://t.co/NgjktVL4wu

— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) June 30, 2022

I was recently introduced to the “Fair Tax“. My introduction to the “Fair Tax” was enhanced by the opportunity to host Jim Bennet and Steve Hayes as guests on my podcast. I encourage people to listen to these podcasts here, here and here. You will appreciate the character and commitment of Mr. Bennet and Mr. Hayes.

In simple terms, the “Fair Tax” would replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of the Internal Revenue Code. These Subtitles would be replaced with one National Sales Tax (currently proposed to be 23%). A general description of how the Fair Tax is envisioned to work is available here. Because the U.S. would no longer be trying to exercise tax jurisdiction outside the United States, it would no longer have to be concerned with the complex rules of international tax, no longer have GILTI and Subpart F rules and U.S. citizens would be free to live outside the U.S. without having the problems of having to comply with two tax systems.

(Notice this means that the U.S. would be taxing ONLY domestic consumption. The U.S. would no longer be taxing income driven by events outside the United States. Because the U.S. would be taxing activity ONLY in the U.S., it would have a “territorial tax system“.)

The purpose of this post is to argue that the adoption of the “Fair Tax” is both better tax policy, but also tax policy that is consistent with the nurturing and growth of a nation that believes in (to borrow the language of Ronald Reagan) the “freedom and dignity” of all Americans. By “all” Americans, I mean Americans who live inside the United States and those who live outside the United States.