Citizenship vs Residency-based Taxation #tax #expatlife

Summary

The transcript discusses the unique taxation approach of the United States, which stands out globally by practicing citizenship-based taxation rather than the more common residency-based system. Most countries like Canada, the UK, Australia, and European nations do not tax citizens who move abroad and no longer meet residency requirements. In contrast, the US requires all citizens and green card holders to file tax returns and potentially pay taxes, regardless of their place of residence, making it one of only two countries with this distinctive taxation policy.