Clear up some myths about USA for me, please

[McIntosh]

Hello,

I've heard some myths about the US over the years. I'm hoping you guys can clear some of them up for me.

True or false?:

- Alaska
* No income tax in Alaska.
* You can still claim (in certain areas) a piece of land and make it your own. (like in the Klondyke years)
* Every year Alaskans are payed royalties for oil etc that the state earns money on.

- Montana
* There are no speed limits.

- All states
* Everybody can buy and own a gun.
* Everybody can apply to get a permit to carry a concealed gun.
* Cars cost next to nothing.
* When you own a plot of land, you REALLY own it. (instead of the quasi-communism stuff we have in Europe)
* When an American citizen moves to another country to work, he/she will STILL have to pay taxes to America. (are they exempt from paying in the country they work in, then?)

Enlighten me, please.
Thanks.

[Tiffani]

Originally Posted by McIntosh

Hello,

I've heard some myths about the US over the years. I'm hoping you guys can clear some of them up for me.

True or false?:

- Alaska
* No income tax in Alaska.
* You can still claim (in certain areas) a piece of land and make it your own. (like in the Klondyke years)
* Every year Alaskans are payed royalties for oil etc that the state earns money on.

- Montana
* There are no speed limits.

- All states
* Everybody can buy and own a gun.
* Everybody can apply to get a permit to carry a concealed gun.
* Cars cost next to nothing.
* When you own a plot of land, you REALLY own it. (instead of the quasi-communism stuff we have in Europe)
* When an American citizen moves to another country to work, he/she will STILL have to pay taxes to America. (are they exempt from paying in the country they work in, then?)

Enlighten me, please.
Thanks.

Dunno about Alaska or Montana, but in most (if not all) states it is legal to purchase a gun... states differ on their waiting periods and requirements for ownership, but generally criminals and mentally ill people aren't permitted them (there are loopholes of course as in most laws) and most states have a waiting period so you don't go shoot your wife who's in bed with her lover out of anger -- you have to wait 30 days to shoot her!

Everyone can apply for a concealed weapons permit; approval of the application is another matter entirely. But again this varies from state to state.

Cars: I guess it depends on what you mean by "next to nothing". We recently moved from the US to Australia. In the US we had bought a late-model used Hyundai Elantra with plenty of warranty left for about $8500 with CD player, power windows and doors, keyless entry, and automatic transmission. In Australia we paid $14K for a 2004 Hyundai Getz with power windows and doors, CD player, automatic transmission, and plenty of warranty (no keyless entry tho). it's a smaller car, and sort of like a wheelbarrow, for twice the money.

When you own land, you own it... what do you mean by "quasi-communist stuff"? How can you only partially own a piece of land? Unless you're still paying for it from the bank, then the bank technically owns it, but the assumption is that it's yours, just like a house. Can you be more specific about the context here? I don't really understand the question...

Americans have to pay tax on any income they earn in the US even if they live abroad. I will pay Aussie taxes on my Aussie income, but US taxes on income from investments etc. But the tax system in the US system is so confusing that it's anybody's guess, really...

[Fatbrit]

* Everybody can buy and own a gun.
Nope! Felons for one can't -- legally anyway.

* Everybody can apply to get a permit to carry a concealed gun.
Nope -- it's state specific. May require conditions (e.g. education) and usually requires a license.

* Cars cost next to nothing.
US cars are cheap -- but quality is bad and design is old. Large trucks and SUVs are particularly cheap at the moment -- you can pick up a US-made V8 truck with all the trimmings for little over $20k since gas prices hit the roof. For prices, try Edmunds.com.

* When you own a plot of land, you REALLY own it. (instead of the quasi-communism stuff we have in Europe)
Nope -- government still holds eminent domain. In addition the following may restrict use: zoning, codes, covenants, restrictions, homeowner associations. Principle that land cannot be alienated leads to easements.

* When an American citizen moves to another country to work, he/she will STILL have to pay taxes to America. (are they exempt from paying in the country they work in, then?)
US citizens are liable for tax on their worldwide income. Foreign income is exempt for the first $80k or so. In addition, tax treaties may alleviate burden.

[synthia]

Originally Posted by McIntosh

Hello,

I've heard some myths about the US over the years. I'm hoping you guys can clear some of them up for me.

True or false?:

- Alaska
* No income tax in Alaska.
* You can still claim (in certain areas) a piece of land and make it your own. (like in the Klondyke years)
* Every year Alaskans are payed royalties for oil etc that the state earns money on.

- Montana
* There are no speed limits.

- All states
* Everybody can buy and own a gun.
* Everybody can apply to get a permit to carry a concealed gun.
* Cars cost next to nothing.
* When you own a plot of land, you REALLY own it. (instead of the quasi-communism stuff we have in Europe)
* When an American citizen moves to another country to work, he/she will STILL have to pay taxes to America. (are they exempt from paying in the country they work in, then?)

Enlighten me, please.
Thanks.

* No income tax in Alaska.

There is no state income tax in Alaska. You still must pay federal income tax.

* You can still claim (in certain areas) a piece of land and make it your own. (like in the Klondyke years)

I don't know about this one, but if it is true, it won't be anywhere near anything.

* Every year Alaskans are payed royalties for oil etc that the state earns money on

That's still true, I think, but the amount has been shrinking.

* There are no speed limits

That used to be true, except that it was illegal to drive in a manner unsafe for conditions. Then they had limits because of federal rules. When the federal rules were lifted, Montana dropped the speed limits. Road deaths skyrocketed. The limits were put back on.

* Everybody can buy and own a gun.

Adults without criminal records or mental defiiciencies can buy and own a gun. The gun must be registered with the government and the owner will be given a gun permit. A background check will be run before the gun is sold, unless it is purchased at a gun show.

* Everybody can apply to get a permit to carry a concealed gun.

Some states don't have concealed carry laws at all. Florida's, for instance, is fairly new. You have to complete a training course to get a permit to carry a concealed weapon.

* Cars cost next to nothing.

Compared to some countries, this is true.

* When you own a plot of land, you REALLY own it. (instead of the quasi-communism stuff we have in Europe)

Haven't a clue what you mean because I don't know anything about European property law.

* When an American citizen moves to another country to work, he/she will STILL have to pay taxes to America. (are they exempt from paying in the country they work in, then?)

America taxes its citizens on their worldwide income. There are exclusions for those who live abroad, for a portion of their foreign income, in the $80,000-90,000 per year range, I think. Any money earned above that amount, if you qualify for the exclusion, is added to your other income and taxes are imposed. If you paid taxes to a foreign government, you can take credit for them on your US income, Ithink.

In addition, some countries have tax treaties with the US and all sorts of things are different for those covered.

[synthia]

Ah, Fatbrit. You write faster than I do.

[tcscivic12]

I can tell you that here in South Carolina in order to get a gun all you have to do is go throught a simple 10 minute background check and then you are on your way with the gun and you can keep it concealed in your vehicle loaded without a permit and you can also privately sale a handgun to anyone without having record of it also.

[Fatbrit]

Originally Posted by Tiffani

and automatic transmission.

Why o why can't Americans do stick! AT makes no sense in a small car.

[Bevdeforges]

I see you got answers to most of your questions already. I'll just add a couple "clarifying" comments...

As Synthia notes, any state you hear about where there is "no income tax" refers only to state income tax. Everyone is still subject to Federal income tax.

The gun situation also varies by state. The Supreme Court just ruled that everyone has a right to own a gun in their home, but that doesn't mean you can carry it around with you. Concealed carry permits are the province of state and/or local regulations, which vary considerably.

Cars (especially used cars) are incredibly cheap by European standards at least - however the periodic inspection standards vary by state and a car barely has to be running in order to pass most state inspections. It's entirely possible to buy a "recently inspected" vehicle only to find that it's not in operating condition.

When you own a plot of land, you do seem to have more "rights and privileges" over it than in many countries here in Europe. Property is considered something of a sacred right here, and while zoning restrictions may interfere with what you want to do with it, you do have the right to fence it off and to take reasonably strong measures to keep people off your property.

And as for US taxation, Americans are taxed on their worldwide income no matter where in the world they are resident. The exclusion of "foreign income" applies only to "earned income" (i.e. salary) plus a small additional allowance for housing costs (again, only to the extent of your "earned income"). Technically, you are also liable for US income taxes as long as you hold a green card, even if you reside outside the US (though you're actually supposed to surrender your green card if you take up residence elsewhere, so they aren't too fanatical about enforcing this).
Cheers,
Bev

[McIntosh]

OK, that cleared up a lot. Thanks.

About the property thing:
In places like Scandinavia, even if you have own a plot of land, you can't do much with it, other than build a house according to the regulations/laws.
We wanted to put up a little windmill here (about 5 feet tall) to generate electricity. That's illegal here. You can't cover yoru roof with more than X-amount of % with solar panels. (We even have carbon taxes on windmills, for crying out loud!).
Your fence/bush around the property can't be higher than XX, you can't just builæd an addition to your house. If you want to build a tool shed, you ahve to get a permit and follow another billion set of rules. Your house has to be a certain colour. The list goes on and on.

The worst might be that at any time the city or state can decide that they want your property. They will pay you for it, but THEY decide how much you'll get for it. Not a damn thing you can do about it.
This happened to some friends of mine not too long ago. They got less for it than they could have sold it for privately.
And, of course, you pay huge sums in property taxes, which I've always thoguht to be absolutely insane. I know that tax goes to roads etc in the US. But here we already pay 55-65% income tax plus 25% sales tax on everything.

Just always thought that it is very unfair that you pay for a piece of land,a nd you basically can't do much with it - AND you get to pay tax on that, too, every month.


About the US tax:

I'm still not entirely clear on this.
Say I'm an American and I move to Germany. Here I get a job and am payed by the German company that I work for.
Does this mean that I pay tax from this income to the US IRS?
Is this a good thing or not?
US taxes are lower than German ones. But if you ALSO have to pay german taxes, then you migth as well not go live there.
So, this whole thing is either a very good deal - or a very bad deal...

[MichelleAlison]

Originally Posted by McIntosh

OK, that cleared up a lot. Thanks.

About the property thing:
In places like Scandinavia, even if you have own a plot of land, you can't do much with it, other than build a house according to the regulations/laws.
We wanted to put up a little windmill here (about 5 feet tall) to generate electricity. That's illegal here. You can't cover yoru roof with more than X-amount of % with solar panels. (We even have carbon taxes on windmills, for crying out loud!).
Your fence/bush around the property can't be higher than XX, you can't just builæd an addition to your house. If you want to build a tool shed, you ahve to get a permit and follow another billion set of rules. Your house has to be a certain colour. The list goes on and on.

The worst might be that at any time the city or state can decide that they want your property. They will pay you for it, but THEY decide how much you'll get for it. Not a damn thing you can do about it.
This happened to some friends of mine not too long ago. They got less for it than they could have sold it for privately.
And, of course, you pay huge sums in property taxes, which I've always thoguht to be absolutely insane. I know that tax goes to roads etc in the US. But here we already pay 55-65% income tax plus 25% sales tax on everything.

Just always thought that it is very unfair that you pay for a piece of land,a nd you basically can't do much with it - AND you get to pay tax on that, too, every month.

The UK has strict building laws also and if you build too high, too big etc. they can come along and knock it down..............................