United States is the only country in the world that taxes based on citizenship not residence. The point of taxes is to pay for public services that are rendered to a citizen. Citizens that do not live in the United States are entitled to very limited services and therefore should not pay taxes. The $95,100 foreign income exclusion is not enough since the value of the dollar is dropping and citizens that make more than this outside the US are double taxed which defeats the purpose of double taxation treaties. If this were to continue more and more Americans will renounce their citizenship. In 2011, 1800 Americans renounced their citizenship. This is 7 times the rate as in 2008. This figure will just continue to rise if something is not done soon.
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