If We Leave European Union; Will We Get Cheaper Ducatis?

You mean income tax I assume.

The US economy is based on indirect taxation and corporation taxes, isn't it? This leaves consumers with money in their pockets to spend, thus keeping prices low via economies of scale, further encouraging consumption and, therefore, business activity to satisfy that consumption. That appears to be key to the Amercan way of thinking. Is that not correct?

 

Possibly but if you listen to the average Republican voter bleating on, you'll hear them tell you that they are paying overall taxation in excess of 100% of their income.

 

That's odd. My retired uncle lived in Canada for 15 years, with indefinite leave to remain as he lived with his son, who was married to a Canadian citizen. But when he received an initial diagnosis of mesothelioma, he came home for a scan to confirm it because it would have cost him thousands there, as he was never accepted as a citizen and had no access to subsidised healthcare in Canada. But here, because he still held a British passport, it was free.

I guess the rules are different because of the EU. But I don't really understand how you could be prevented from using the NHS. When I go to France I take a completed form E101 to allow me to access French healthcare.

 

When you come to France you have an EHIC (replaced the E101 about 5 years ago) and that gives you access to emergency treatment only. I would have to use the same in the UK as I am a French resident even though I pay UK tax and spent all of my working life serving Queen and country.

 

How is it you pay UK Tax? I am assuming you have made a claim on a P85 for Not Resident/Not Ordinarily Resident status?

Is this some weird EU thing?

 

If you have a military, NHS, Police, civil service or other pension paid for government service than that is taxed in the UK and there is nothing that I can do about it. I still have to declare it on my French tax return but tax allowances are better in France and I don't earn enough to pay French tax.

 

DTR agreements mean that you should get credit for UK Tax paid - which would reduce any French tax you pay. If you paid any.

Still, it could be worse - the American IRS taxes any of its citizens, anywhere in the world. That, I'd say, is fucked up.

 

Disagree. It is the price of having the passport and should be implemented here.

 

So an individual who was born in the USA and left by the time they were, say, a year old, never returning, needs to pay income tax to the IRS?

You are comfortable with that scenario?

 

It is fucked up.
One of my closest friends is American and I was at school with him. He did all his schooling in the UK, and has only worked in the UK. But, he has an American passport and until recently, didn't have a British one. He's been bricking it that the IRS would find out about him and demand a zillion £££ in back taxes. Being a lawyer he felt he needed to be above board. But he was advised that since he has heard nothing from them in 30 years of work, he should keep schtum and forget about it.

 

I

If they have the passport, yes.

If they don't want to pay the tax, relinquish their passport and naturalise in the country in which they live.

 

If there is benefit in having the American passport then that benefit needs to be paid for.

 

They would have to pay me to have a US passport! Never even wanted to visit the US, who would go somewhere without history? That is my personal opinion. Canada is good though, flew a microlight across half of it back in 1996.

 

I'm not certain it's that easy. If you are earning big foreign currency, the US Government may not allow you to "relinquish" your US citizenship. Naturalising in another country certainly doesn't wipe out your US Citizenship.

 

Our esteemed London Mayor Boris Johnson was born in New York and holds US citizenship. As a result of this when he recently sold a house in London making an enormous capital gain, the US authorities charged him tax on that capital gain. Boris was reported (don't know if the report was accurate) to be angry at this, and is apparently intending to renounce his US citizenship in order to avoid further American taxes.

 

Yes, that story was doing the rounds a few weeks ago.

 

If you have a passport, that confers certain rights along with which comes certain responsibilities, and that includes paying tax.

 

Harsh but I guess, it's a "goes with the territory" kind of fair.

OK, John, I'll allow your idea.

 

On the topic of Double Taxation Avoidance Agreements, see this informative Wiki article:
http://en.wikipedia.org/wiki/Tax_treaty