The Tax Reform No One Talks About

"A territorial tax system – what is that?" So inquired a White House reporter of Treasury Secretary Steve Mnuchin as he outlined President Trump's tax reform proposal. The question itself, and the baffled tone in which it was delivered, reveals much about why Americans who rely on news media for analysis of economic matters, and tax policy in particular, remain so benighted. In particular, American citizens, their families, business associates, and various other "U.S. persons" seem blithely unaware of the power claimed over them by the Internal Revenue Service. To wit, if you are an American, or married to one, or in certain sorts of business with one, the IRS demands that you file and pay taxes to the IRS every year, even if you have never set foot in the United States. This is almost never discussed in the mainstream media, presumably because politicians, journalists, and various financial talking heads simply do not understand the issue....(Read Full Article)