In an ironic turn of events in the 21st century, it is the United States who has become front and center the very essence of fascism that for decades we blamed dictators and other tyrannical governments of being. And even more ironic to this is that former socialist and communist nations are becoming more capitalistic than America, and quickly becoming ground zero for the new paradigm of global finance and trade.
But what is perhaps most disturbing is that the United States is now one of only two countries that not only tax their own citizens who live or work outside the confines of the nation, but have passed laws that penalize foreign banks and governments who don’t fully report all personal and financial information of these citizens to the Internal Revenue Service.
Oh, and by the way, the other nation that taxes its citizens who live or work outside their own country was cited by the United Nations for using extortion, threats of violence, and fraud in the pursuit of collecting taxes from these people.
Eritrea is one of only two countries in the entire world that taxes its nonresident citizens on their global income. Specifically, Eritrea levies a flat 2% tax on the income of its citizens who reside abroad.
Nearly every other country in the world bases its tax system on residency rather than citizenship.
In fact, even the UN has weighed in. In Resolution 2023, the UN Security Council condemned Eritrea for “using extortion, threats of violence, fraud and other illicit means to collect taxes outside of Eritrea from its nationals.”
The only other country to tax its nonresident citizens globally is of course the US.
The US essentially does exactly the same thing as Eritrea to its nonresident citizens, except that it’s done on a much bigger scale and with absolutely draconian penalties.
Eritrea’s paltry 2% tax is a mere fraction of the top 39.6% federal tax rate that expat Americans have to pay—even if they earned that income abroad and never set foot in the US. (The US does allow for an exemption of a limited amount of foreign earned income, if strict requirements are met.) – International Man
America’s push for collecting taxes and personal information is so much a part of their national agenda that several foreign banks have no stopped accepting new account requests from U.S. citizens, and are in some cases, are forcing Americans who have foreign accounts to close them down completely.
In March of 2010, the Internal Revenue Service became the administrator of a law known as the Foreign Account Tax Compliance Act (FACTA) which gave the tax collection agency the power to demand personal and financial information from all banks that work within the U.S. controlled SWIFT system, which is pretty much the majority of banks in the world since at this time, foreign countries much purchase dollars through SWIFT to buy oil and other commodities in the designated reserve currency. This of course has led to a backlash, and is culminating in coalitions of countries such as the BRICS nations to create their own SWIFT alternative and alternative reserve currency system.
Fascism, like terrorism, is quite often determined through the eye of the beholder, or in this case, through the eyes of those who run an empire versus those who are relegated to being a third world country. And while the United States continues to demand its fair share of tax revenues from U.S. citizens living, working, and holding their money in overseas accounts, they are not treated as a criminal state when at the same time, the country of Eritrea is vilified by international bodies for doing the exact same thing.