The U.S.system for taxing income earned outside its borders by U.S.persons is referred to as the territorial approach,because only income earned within the U.S.border is subject to taxation.

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The U.S. system for taxing income earned outside its borders by U.S. persons is referred to as the worldwide approach, where all income earned by U.S. citizens and residents is subject to taxation, regardless of where it was earned.

The USSystem for Taxing Income Earned Outside Its Borders by U