But there’s a US$130,000 exemption (the “foreign earned income exclusion”) and tax treaties with many countries, so not many people actually need to pay extra tax to the USA. Realistically, the only time you need to is if you earn more than US$130k and the country you live in has a lower tax rate than the USA.
What hurts much more is the “exit tax” when you leave the USA (as a green card holder after 7 years) or renounce your citizenship.
But there’s a US$130,000 exemption (the “foreign earned income exclusion”) and tax treaties with many countries, so not many people actually need to pay extra tax to the USA. Realistically, the only time you need to is if you earn more than US$130k and the country you live in has a lower tax rate than the USA.
What hurts much more is the “exit tax” when you leave the USA (as a green card holder after 7 years) or renounce your citizenship.
I’m assuming if someone had $5m just lying around to buy citizenship, their income is well beyond the $130k exemption