Every year, around tax time, there are a spate of hard-luck stories about how unfair the American tax system is. One subject which always comes up is about Americans who work out of the country.
The American IRS is the greediest, graspingest, most inflexible, most confiscatorial system in the world. They make paying the vig to an underworld loan shark look easy and polite.
Many people think that those who work abroad are well-to-do. Many are free-lancers, barely getting by, and the American government makes it overly difficult. There is a law which states that a person born outside the US, to even one American citizen, is also automatically an American citizen. That was the rule that allowed Ted Cruz to run for President, even though he was born in Canada.
The Internal Revenue Service has a rule that, any citizen working outside the country, must pay taxes to them. This often means that people have to pay taxes twice, and the IRS paperwork involved is intrusive, convoluted and arcane. It’s enough to cause a career bureaucrat to throw up his hands and retire.
The money-grubbing and paperwork has got so bad, that many Americans are giving up their citizenship. No taxation without representation! This used to be an easy “fill in a form, and pay a $300 fee.” In retaliation, the IRS has instituted new regulations which require a whole tree’s worth of paper, and an increased charge, north of $2000. You have to pay lots of money, not to have to pay lots of money.
The shit has hit the fan, even if it’s not obvious yet. This year, just about tax-time, something occurred which will cause waves, if not change the entire ex-pat tax scheme. A baby was born. There was no star in the East, and definitely no three Wise Men.
Megan Markel gave birth to Archie Harrison Windsor. Being born in a foreign country, to one parent of American citizenship, the Federal Government has declared him to be an American citizen. The IRS rule says that he must declare all assets, income, and increase in financial worth – and pay taxes on them.
Most 1-year-old children don’t have much of an income stream, but as a member of the British Royal Family, Archie owns a chunk of a nation, and his worth is considerable, and increases constantly. The chances of the IRS collecting a piece of that, are less than the Jehovah’s Witness Church forcing Michael Jackson to tithe 10% of his obscene income.
There’s trouble looming down the line, too. All American citizens, no later than the day after their 18th birthday, must register for Selective Service. Can you see a future King of England fighting in a foreign war? Nah, I can’t either.
The invasive, prying paperwork that either Megan or Archie would have to submit, must include full financial information about a spouse or parent, since that can affect taxes owed. This means that Prince Harry must also reveal to the IRS, all his assets, income, and investments. I can just imagine a Federal clerk opening a letter on Buckingham Palace stationery.
Re: your request for full disclosure of Harry Windsor’s financial situation
FUCK YOU! Strong language to follow.
I will not be surprised to hear of special dispensation in this case, but surely some enterprising lawyer/taxpayer team can use it as a precedent, to force changes to a Federal Department whose mascot is a shark.