The fact that …
The combination of @citizenshiptax and #FATCA are the enforcement mechanisms of this proposed @USWealthTax. The Warren "Ultra-Millionaire Tax Act of 2021" https://t.co/sMjgTP9uny via @TaxConnections
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) March 5, 2021
Leads to the obvious question of …
Could @gabriel_zucman comment on how much of the revenue generated from the Warren Wealth tax would be based on non-US assets owned by individuals (who although US citizens) have @taxresidency in other countries with no connection to the USA. Is this theft from other countries? https://t.co/qAwHtIQ2UG
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) March 17, 2021
The fact is that Senator Warren is proposing to impose her wealth tax on property located outside the United States, purchased by individuals who live outside the United States, who have no connection to the United States other than (perhaps) the circumstance of having been born in the United States. Yup, it’s true.
On March 18, 2021, FATCA will turn on 11. The Senator’s proposed wealth tax explicitly states that FATCA is to be used to enforce this tax! Finally an (il)legitimate use for FATCA.
In the 18th Century Adam Smith wrote “The Wealth Of Nations”. In the 21st Century Senator Warren is proposing to impose a wealth tax on “The Wealth Of OTHER Nations”.
Discussion And Analysis
This is the second of what I expect to be a multi-part series on Senator Warren’s proposed wealth tax of 2021. As the above tweet makes clear, the practical utility of the tax depends on US citizenship-based taxation (to whom it applies) and FATCA (how are non-US assets located). In my first post, I referenced Senator Warren’s statement that: