In Reply to: Expats are supposed to continue to pay US taxes posted by blindness on April 28, 2025 at 10:53:33
Trump wants to go further. One of the things these guys do is connect you with people who for example help you
convert investments from US to NZ. So you have an IRA, they will help you move it to NZ with the least amount of taxes being triggered. Trump is trying to block that so if you moved the money you would have to pay income tax on the whole thing if it's not in a Roth. If you just left it in the US you would get income tax of course but you also have to pay income tax in NZ where you would be living. What we were told is what's being proposed by the Trump admin is way beyond what other countries do.
I get that IRA's grow tax free so when you start taking the money out you pay the tax but what Trump wants to do is different. If you have say 1 million, you withdraw what you need to live on every year, the target is supposed to be 4 percent so 40K. You pay income tax on the 40K which puts you in a low tax bracket. What Trumps wants is for you to pay income tax on the entire 1 million because your're going to convert it to another country. so you're in the highest tax bracket.
Remember he's an anti tax Republican who is talking about removing income tax on people earning under 200K a year(he says). He's also saying you can't tax the rich because if you do they'll just leave. But he wants to do exactly that to people who decide they don't want to live in authoritarian rule