Treading Perrier
by Isabel Ortiz.
A taxing situation:
overseas Americans answer to two taxmen instead of one.
As a
dual-national Mexican-American living and working abroad, I have grown
accustomed to certain indignities that befall overseas Americans. When I
introduce myself as American, I get extreme reactions from many people-either
positive or negative-whereas my Mexican passport tends to stir far less
emotion.
While
living in places like China, Germany, Chile, India and now France, I have
frequently been called upon to answer for a wide range of subjects-from war to
pollution to slavery-that have little or nothing to do with me. In many
of those conversations, the person on the delivering end of the one-way
conversation is not interested in my thoughts or opinions, but is just looking
for a convenient surrogate, a sort of effigy to verbally kick around for a few
minutes at a time. In those conversations, I am being punished for the
simple fact that I am an American living abroad. This is one unfortunate
but foreseeable consequence of my decision to move abroad.
More
surprisingly, however, is how we overseas Americans are punished by the Unites
States itself when we move abroad. You might expect that the U.S. would
encourage and assist us; after all, we are here putting a human face on
American culture and even American politics, often taking the brunt of an
acerbic reaction to U.S. foreign policy. Many of us, including myself,
are even working for American companies, making a real contribution to the
American economy. You would think that the U.S. government would
encourage this, but it is actually doing exactly the opposite.
The United
States is the only industrialized country on the planet that penalizes its
citizens abroad by taxing them back home on their worldwide income. The
only other countries this enlightened and progressive are Angola and North Korea.
We keep great company.
So here in
France, we pay our social charges and taxes just like French citizens and then
have to pay Uncle Sam again. A lot of U.S. companies pay their American
expats extra money to cover this burden, costing them millions of dollars each
year for no discernible reason.
The result
is that there are fewer and fewer Americans like me globetrotting for work,
even at American companies. I don't personally mind being an increasingly
rare breed, but it is sad to think of all the would-be overseas Americans who
have to stay put back in Iowa-without even having the freedom to make their own
choice about whether to live abroad-because they or their employers
can't afford to pay their taxes twice.
The
optimists say that this is all because of a few individuals in Washington who
have it out for us, people who perhaps find something disloyal in our decision
to move overseas, even if we're over here working for Boeing, Microsoft, and
McDonalds. I say these people are optimists because, in their view, if it
weren't for those few individuals in Washington who hold a grudge, we would be
treated the same way as everyone else and only be taxed once; i.e., our problem
isn't the whole American system, but rather a few individuals, who of course
won't be in power forever. At the top of this list is a Senator named
Charles Grassley.
Tax policy
is all about encouraging certain choices and punishing others. American
taxes encourage things like education, retirement savings and renewable energy,
while discouraging potentially self-destructive habits such as smoking, alcohol
consumption and fossil fuels. These priorities all seem perfectly worthy
to me. But what exactly is Congress trying to encourage and
discourage by taxing me when I am not even living in the U.S.?

But what exactly is Congress trying to encourage and
discourage by taxing me when I am not even living in the U.S.?
Do they want me to move home? Why?
If they
ultimately win and I have to go back, then I know whose doorstep I'll be
showing up on-Senator Chuck Grassley. I'm sure he has a guest room ready
for me.
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