Introduction And Purpose
The 2008 notes of a law student about Justice McKenna's decision 1924 decision in #CookvTait. The basis of the ruling is more about the meaning of citizenship under principles of international law. It appears to have very little to do with tax. pic.twitter.com/Jb0zE5qTca
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) September 6, 2022
The focus of this blog has always been on citizenship, taxation and citizenship taxation. Although taxation has always been perceived as a necessary burden, citizenship has sometimes been a benefit and sometimes been a burden. James Dale Davidson, writing in “The Sovereign Individual”, expressed the view that in the 20th Century US citizenship was generally a benefit. In the 21st (digital) century US citizenship based taxation has transformed US citizenship into a burden. The numbers of people renouncing US citizenship are a testament to this new reality.
The Weaponization Of US Citizenship – Two Methods
The history of US citizenship as documented in Amanda Frost’s “You Are NOT American”, is an epic story of the “weaponization of citizenship”. I highly recommend Professor Frost’s book – “You Are NOT American” to those interested in the evolution of US citizenship.
The Weaponization Of Citizenship: From “You Are NOT American” to “You ARE American” https://t.co/ei4PadNr2x
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) September 7, 2022
Method 1: Weaponization By Claiming The Individual Does NOT Meet The Requirements Of Citizenship
Regardless of the benefits or burdens of US citizenship, it is clear that the United States has a long history of “weaponizing US citizenship”. Professor Amanda Frost in her superb book “You Are NOT American” provides many examples of how the United States has used the concept and status of citizenship to either punish or reward individuals. Generally, Professor Frost describes a history where the use (or misuse) of America’s “nationality laws” has created hardships for people. Citizenship is a part of who people are. It’s part of their personal identity. Citizenship (presumptively) gives people a place or country they can call home. Citizenship (presumptively) gives people a place where they can live without fear of removal. Citizenship matters and the loss of citizenship can be a frightening and destabilizing event in the lives of an individual. It was not until 1967 that the United States Supreme Court in Afroyim ruled that US citizenship was conferred by the Constitution, belonged to the individual and could not (at least if born or naturalized in the US) be taken by the Government. (Of course that is of little comfort to those who can’t prove their US citizenship.)
Method 2: Weaponization By Claiming The Individual Does Meet The Requirements Of Citizenship
A minority of countries in the world confer citizenship based on and only on birth in the country.
Only two countries in the world impose worldwide taxation based on and only on the fact of citizenship.
The United States is the ONLY country that does both!
FATCA assisted the United States in exporting US taxation into other countries and on to the individuals who live in and are tax residents of those countries. In short: the accusation of being a US citizen living outside the United States subjected one to the “disabilities” and “criminalization” imposed by the US extra-territorial tax regime.
The US Supreme Court, Justice Joseph McKenna, And Citizenship In The Early Part Of 20th Century