Re: Who's the UK?
> The result is that if you are a citizen (or permanent resident) you have a lot of difficulty opening or owning bank accounts outside the US because banks just don't want to run the risk of running foul of US law.
Yes, and that's because any US citizen or permanent resident who has a pressing need to open a foreign bank account by traveling to a foreign country is more than likely doing so for US tax evasion purposes or money laundering, and not much else.
Somehow you appear to view this restriction as a defect. Most people don't.
If you have a pressing need to do business with a bank that doesn't mind being a laundromat, I can recommend a few banks in Panama.
Please stop misrepresenting US tax policies re: foreign income.
Yes, in theory, the US imposes federal tax on foreign earned income. However, that income is not taxed at the same rate as US-derived income.
First: the individual standard deduction for foreign earned income is USD $108,700 per person, per year. That means: the first $108,700 earned in foreign income each year is tax-exempt.
Second: for any foreign-earned income above $108,700, the double-taxation avoidance principle applies: a person earning foreign income can claim credit for all their foreign-paid taxes, including VAT. Given the high tax rate of EU (and most non-EU) countries, the foreign tax credit more than covers any US tax liability.
The net result is that, for foreign income, US tax liability applies only to individuals earning massive amounts of money.
In effect, foreign-earned income is tax-free in the US, although US tax law applies in theory.