How The ”Fair Tax” Would End Tax Residency, Worldwide Income And Taxation Of Americans Abroad

March 17, 2022 - Participants Include:

Jim Bennett - Fair Tax

John Richardson - @Expatriationlaw

 

Albert Einstein famously remarked that:

 

"The hardest thing to understand in the world is the income tax."

 

The income tax may also be the most unfair tax.

 

Fair Tax is a leader in educating and advocating for a "Fair Tax" which imposes taxation on only consumption.

This podcast features a discussion with Jim Bennet who is one of the most focussed and prominent advocates for the "Fair Tax" in the world.

Interestingly, the enactment of the "Fair Tax" would have the unintended consequence of ending the taxation of Americans abroad.

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The concept of the income tax coupled with worldwide taxation means that "tax residents" of a country are subject to taxation on their worldwide income. This leads to enormous complexity, compliance costs, uncertainty, anxiety and unfairness.

Many countries (Canada and the United States) have both an income tax and a consumption based tax. Some countries have only a consumption tax (example Bahamas).

Because of the unfairness, discriminatory nature, complexity and cost of administering an income tax system, there is a movement toward moving toward ONLY a consumption tax system.

Nobody explains this better than Jim Bennett. I thank him for being my guest today.

Learn more about the "Fair Tax" here.