Which of the following statements about taxation for expatriates is false?
A) The problem of double-taxation is mitigated in the United States by an income exclusion of about $40,000.
B) The current maximum marginal tax rate for those working in the United States is about 35 percent.
C) International firms are subject to varying tax rates around the globe.
D) Rates are different from country to country, and they change within countries from time to time.

Question

Quizplus · Accepted Answer

The false statement is A) because the United States offers a Foreign Earned Income Exclusion, but the amount is significantly higher than $40,000. As of the last update, it's around $100,000 or more, not $40,000. This exclusion helps mitigate the problem of double taxation for expatriates by allowing them to exclude a certain amount of their foreign earnings from U.S. income tax.

Which of the Following Statements About Taxation for Expatriates Is