Awesome days and cool nights!
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.
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