Some people are claiming that the US tax treaties will protect us, but they won't. Victoria Ferauge wrote about paying US taxes on a French bought with a French loan and paid for with a French salary and there was no tax treaty or Foreign Earned Income Exemption to protect her.
|Many expats live in Argentina|
Photo by Pablo D. Flores
But consider a far, far worse scenario: Dubai.
Dubai is an emirate in the United Arab Emirates (UAE). Here are a few interesting facts about them.
- They do not allow foreigners to claim citizenship.
- They are well-known for seizing the passports of indebted expats in Dubai (preventing you from leaving the country).
- There are a lot of indebted expats in Dubai.
So you're in Dubai, you have some debt, Tierney's bill passes and all of a sudden, your income drops dramatically. They take your passport and you are never leaving Dubai. You don't have the option of returning to the US. You can't take citizenship in Dubai to escape the US debt. You're trapped. It's happening in Dubai today; with Tierney's bill, it will only be more frequent (I've read of one couple in Dubai whose children can't go to school because the couple can't afford it but their passports were seized).
Representative Tierney genuinely seems like a nice person, but he's going to hurt Americans the world over with this one.