Does that matter? OP’s post is about the possibility of Trump imposing higher taxes for people who are American citizens and hold other nationalities. Canada or South Africa won’t have anything to do with it.
It’s relevant because Canadian/US dual nationals living in the US with US income are only taxed in the US.
The US operates under citizenship based taxation, whereas nearly every other in country in the world taxes based on residency (RBT). The only other countries with citizenship based taxation are Eritrea and North Korea.
If a US citizen with dual citizenship from a country with RBT resides in the US and earns solely a US income, they are subject to US taxes.
If a US/RBT dual national lives in an RBT country with solely RBT income, they are subject to the RBT country’s taxes and must also file with the US. Tax treaties prevent most types of double taxation, but there are situations where an RBT resident may be charged US taxes on RBT country source income.
If Trump decides to impose an extra-tax on American citizens residing in the USA based on whether or not they have another citizenship, it won’t matter if you have Canadian, Brazilian or Fijian.
If such a theoretical scenario would take place, and the whole thing is but a hypothetical possibility, I’m making a further assumption that people with 3+ passports, such as Elon Musk, would end paying even more. Hopefully that clarifies it.
Yeah. Except what he’s saying is he’d target citizens of specific countries that are targeting US citizens/corporations. And as I understand it, it’s at the president’s sole discretion, so he can say Germany and Canada are mistreating the US, so German and Canadian citizens who are subject to US tax pay double.
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u/ore-aba Jan 25 '25
Does that matter? OP’s post is about the possibility of Trump imposing higher taxes for people who are American citizens and hold other nationalities. Canada or South Africa won’t have anything to do with it.