Great News For Rich Jerks!

How to dodge income tax while retaining your right to vote.

Grand Cayman.

The trouble with being a rich jerk is that you have to pay income tax. You can dodge it by moving to the Bahamas or the Cayman Islands, two countries that have no income tax, but unless you give up your American citizenship you still have to pay income tax to the United States. That is much less of a problem for not-rich people because the United States excludes from taxation your first $126,000 earned abroad.

Donald Trump has a solution to this dilemma. He proposes no longer taxing Americans who live abroad. Because of the $126,000 exclusion, plus a housing deduction and a dollar-for-dollar exclusion for income tax paid overseas, this tax break won’t affect 82 percent of American expatriates who retain citizenship. But it’s a bonanza for the rich ones. Under this plan, rich jerks can move to the Bahamas, pay no income tax to anybody, yet still sustain the American oligarchy by voting in United States elections. Sweet! This is the topic of my latest New Republic article. You can read it here.