Imagine if a place like Panama had upwards of 800,000 undocumented immigrants in her country. Things would be chaotic to say the least, well that’s exactly how many drivers licenses the State of Californian has issued to illegal aliens (or undocumented persons if you are one of those PC freaks) who have legally received a DL. http://www.mercurynews.com/2016/12/28/dmv-licensed-800000-undocumen...


Now having this type of government issued photo ID which is the primary means by which North Americans use for common everyday identification is a precursor for other government benefits and free stuff. This would include but not limited to welfare, SSDI, prenatal and postnatal State health care benefits and services, emergency room visits at no cost to the patient and free education through K-12 plus college tuition assistance among other free stuff all because one has a legitimate DL yet are in the USA illegally.


This is all paid for by hard working taxpaying American Citizens including legal immigrants all who pay into the national Social Security system as well as federal and or state income tax coffers. They also pay sales, property, CA State redemption and special consumptions tax, VAT and a host of other taxes deemed appropriate by Government entities at all levels.


So as an American Citizen do you feel comfortable or even violated by all the free stuff the Federal, States and local governments give away to undocumented persons or illegal intruders who have paid little or nothing into the “system” but get to milk the cash cow?


Like most people,  I have worked very hard all my life with the anticipation to receive an equitable piece of the pie once I retired so I take issue with those who have contributed very very little or nothing yet get to indulge in the fruits of honest hard working taxpaying citizens. According to IRS statistics about 50% of all households in the USA pay very little or no taxes at all.
http://www.businessinsider.com/who-pays-no-taxesand-why-theyre-no-p...

So what does this have to do with living in Panama? Well if you legally live here as a bona fide resident expat then you have legal tax shelters available that should help you keep more if not all of your retirement income.


Having lived and worked all around the world including decades living in Panama I can certify that paying taxes to the American Government can and should be a thing of the past once you enter your retirement years assuming you meet the IRS requirements and are considered a bona fide resident of a foreign country like Panama.


You can learn more in Publication 54 of the US Tax Guide for US Citizens Abroad @ https://www.irs.gov/pub/irs-pdf/p54.pdf

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Comment by Walter R. Steiner on January 10, 2017 at 1:15pm

On a per capita basis, Panama has probably the same (or more) "illegals" than the U.S.

What about "border hoppers" or "permanent tourists"? Are they considered "legal" in Panama?

What about those that work "underground" like e.g. selling home-made stuff (!)  without paying taxes, are they more upstanding citizens than the "undocumented immigrants" that end up picking fruit at below-minimum wages?

Comment by Kelvin on January 10, 2017 at 10:56am
gato,

Censorship is theoretically a part Ning's poilcy, although the bs has crept back onto the forum page.

"Our Forum is your community forum to engage, ask and inform your neighbors of valuable and helpful community interest(s) for everyone. We encourage all members to use the forum often for everyone's benefit and enjoyment. ( Any forum post that attacks or is hurtful to any member or group of members will be deleted and the member will be terminated)."

Censorship is everywhere. Surely you wouldn't suggest pornography should be allowed. The suspects hateful insults are just as bad in my opinion.
Comment by El Gato on January 10, 2017 at 8:05am

Kelvin,

its not my blog I would let you spew whatever hateful garbage you like.

You are the person who wants "censorship" on the main page so are you a hypocrite?

I sleep well with the knowledge that The Donald is President and it is going to be GREAT!

Have a good day guy.

Comment by Kelvin on January 9, 2017 at 11:10pm
I'm not broke ass. I'm proud of what I've accomplished in my life.

Why in the world would you suggest I'm broke ass- insulter perfecto? Why do you and your types have to be so hateful?

Fucking coward- hiding in your closet. We can only guess as to how broke ass you are- since you choose to remain anonymous. It never ceases to escape me as to why you have the predilection to insult. Inferiority complex would be my guess.
Comment by El Gato on January 9, 2017 at 7:26pm

Kelvin is a broke ass gringo so he pays no taxes.

He hates anybody that has succeeded in life and is a bitter individual.

A "democrat"

Comment by Steve Gibson on January 5, 2017 at 10:24pm

Kelvin,

 I thought you had promised no more BS on this site and no more sleazy attacks on people. I pay my taxes each year BY THE LAW and I take the time to read them. I believe that America started on the premise of unfair taxation on expats from England. Correct me if I am wrong. If you want to send extra money to DC, then by all means go ahead. I can think of a lot of better uses for it. 

Comment by Kelvin on January 5, 2017 at 9:15pm
Believe it or not, there are tax laws passed by the U.S. government. If you are opposed to these laws then renounce your citizenship. Easy peasy. Tax whiners are right at the top of my list of undesirables.

I know it's hard to believe, but there are folks who want to make money and pay no taxes. I call them greedy bastards with no social conscience.

Check out if that shoe fits.
Comment by Steve Gibson on January 2, 2017 at 6:33pm

Taxes paid to Panama are deductible from US taxes.

Comment by Pantah on January 2, 2017 at 12:49pm

Steve, I think one has to pay SS taxes on the earned income that the corp pays to the tune of 12.4%. Maybe Medicare taxes too. If one sells rental property in Panama at a profit, is there a way to offset in the US to avoid double taxation?

Comment by Steve Gibson on January 1, 2017 at 7:18pm

Pantah,

  You are correct about paying US tax on sale of property in Panama if you sell if it is owned in your name. This triggers income to the IRS known as "unearned income". There is no exclusion for "unearned income" according to the IRS. If your property is owned as investment property by a Panamanian corporation and the property sells then the corporation can pay you a salary and your spouse for "administrative or maintenance fees" which would then be classified as "earned income" which carries an exemption of +/- $99K/per year per person ( married couple) if living outside of the USA for +/- 11 months per year. Of course the corporation would be responsible for taxes  on gains above the adjusted  base. So if you can't live in Panama with an income of $198K/year then this is all moot. 

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