The concept that someone born within the boundaries of the United States is a citizen thereof is well settled. A recent Supreme Court decision confirms this to be the case, except under very specific circumstances [1]. However, the idea of birth tourism – where someone comes to the United States solely to confer upon their child, and ostensibly to the parents as well in some indirect way, the benefits of U.S. citizenship – is abhorrent to most citizens. Why should someone who has no real allegiance to this country – until it is useful to them – be rewarded with the benefits of U.S. citizenship simply because their parents intentionally traveled here to give birth?
President Trump believes the answer is to refuse citizenship to children born here to parents whose sole purpose in coming to the U.S. is to confer citizenship upon their child. However, I have a better way. And my way will either force these birth-tourism citizens to renounce their U.S. citizenship or become contributing members of American society.
The United States is one of the few (if not the only) countries in the world that taxes the income of its citizens no matter where that income is earned [2]. It does not matter that citizenship was conferred by birth, after which the child left the country for the majority of their life. Once they become wage earners they owe the United States Treasury an appropriate fraction of their earnings. At the very least they owe an accounting of their earnings to the IRS in the form of annual tax filings. When such birth tourism citizens attempt to enter the U.S. at some point much later in their life they should be taxed on any valuables or cash they possess (as assumed earnings), or which they will later receive. Alternatively, they can possibly be arrested for failing to submit income tax returns for the many years when they earned income but did not report it to the IRS.
American citizenship comes with a price – taxes. If you want the citizenship, be prepared to submit your IRS 1040. Uncle Sam wants YOU – to pay your taxes as a birth tourism citizen.
Oh, and when you decide to renounce your citizenship to avoid paying those taxes (which you’ll still have to pay), be sure to send the “exit” tax on your net worth at the time of renunciation [3].
We may find birth tourism much less popular if people are forced to pay “their fair share” – like the rest of us – as citizens of the United States.
Just a thought…
[[1] TRUMP, PRESIDENT OF THE UNITED STATES, ET AL. v. BARBARA ET AL.
[2] https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters
[3] https://www.irs.gov/individuals/international-taxpayers/expatriation-tax