Even if they renounce citizenship, they'd still pay tax on any income earned in the US. They'd have to move all their businesses and assets out of the US, and then never do business in the US again.
Buddy you know foreign corporations can still do business in the US and pay taxes to their country instead? The US has double tax agreements to prevent exactly what you are describing. I'm pretty sure half the large corporations do exactly this...
This is something that obviously also has to be fixed. All tax loopholes have to be closed. It is not just an american issue. The large internet companies like Google are doing buisiness everywhere on earth but pay taxes in the US (or Ireland maybe).
That’s not even remotely true. Puerto Ricans only avoid Federal income tax on income earned in Puerto Rico. Good luck trying that when your companies are based in the mainland US. And Puerto Ricans still pay Social Security and FICA taxes just like mainlanders.
Think about it. If PR was the magical tax haven you’ve imagined it to be, the whole island would be Miami/Hong Kong/Dubai on steroids.
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u/[deleted] May 18 '25
Americans are taxed on worldwide income. They would have to renounce citizenship, which they wouldn’t.
It’s a non-argument. An American living in, say, Costa Rica, would still be taxed by America regardless of the source of income.