SEAT Working Paper Series - Extraterritorial Taxation #16: Understanding Cook vs. Tate - Unraveling the Transformation of US Citizenship and Taxation

May 21, 2024 - Participants include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

 

Extraterritorial Taxation #16: Cook Is Ripe for Revisiting

This paper contains three concurrent timelines detailing the step-by-step expansion of U.S. extraterritorial taxation as well as of citizenship and equal protection, since the 1924 U.S. Supreme Court decision Cook v. Tait. These timelines underscore how Cook is ripe for review.

Available at: https://ssrn.com/abstract=4466275

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AI Description:

"Understanding Cook vs. Tate: Unraveling the Transformation of US Citizenship and Taxation

In this absorbing episode, join our host John Richardson alongside guests Laura Snyder and Karen Albert as they discuss the intriguing changes in US citizenship and taxation. Delve into Laura Snyder's working paper series, focusing particularly on the 16th paper which explores extraterritorial taxation and revisits the pioneering Cook vs. Tate case. Discover how this landmark 1924 US Supreme Court decision underpinned the US extraterritorial tax system and understand its continued relevance in the evolving landscape of citizenship and taxation.

Be enlightened as Laura Snyder delivers a concise summary of Cook vs. Tate, emphasizing that it was a defining case more about citizenship rather than taxation. Listen to Karen Albert as she navigates through the expansion and complexity of the US tax system post-1924, shedding light on the changing perceptions of foreign income and assets. This insightful episode is essential for anyone interested in understanding the impact of legal decisions on present-day citizenship and taxation issues and the evolution of legal interpretations against different historical contexts.

Dive deeper into the intricacies of American tax laws, especially concerning U.S. citizens residing abroad. Explore historical discrimination precedents like the Plessy v. Ferguson decision in 1896 and understand its lasting impact on lawmaking. Transition into the United States v. Caroline Products Company case in 1938 that introduced the era of ‘levels of scrutiny'. Acknowledge the evolution of equal protection through landmark court cases like Hirabashi v. United States and Bowling v. Sharp.

Focusing on tax laws, the hosts raise valid questions on their susceptibility to constitutional challenge and express concern over the limited societal understanding of constitutional, human, and tax rights in America. The episode wraps up with a spirited discussion on the application of equal protection principles in the arena of tax laws.

Join the conversation as the hosts delve into taxation, equal protection, and their influence on modern-day US citizenship. Hear about historic cases like gay marriage intersecting tax benefits and equal protection. This discussion will challenge listeners to contemplate the potential dangers of tax laws breaching equal protection rights.

Understand the significant transformation of citizenship's constitutional standing, from being a nexus of obligations to a nexus of rights. Reflect on the relevance of Cook v. Tate and the need for re-examining the current citizenship taxation system. This conversation is a gateway to a fresh perspective towards the taxation of overseas Americans, sparking hope for a future where the voices of Americans living abroad are valued in policy-making."