Welcome to Tax Hell, Little Earl of Sussex

by Evil HR Lady on May 7, 2019

Congratulations are in order to Prince Harry and Meghan, Duchess of Sussex, as they welcomed their yet unnamed son into the world yesterday. The new little Earl (he won’t get a Prince title like his cousins) weighed in at a healthy weighs 7lbs. 3oz and comes with a life long tax burden.

You see because his mother, The Duchess of Sussex, is still an American citizen and she lived in the United States long enough to pass on citizenship to her children, regardless of where they are born, the new little Earl will be eligible for a nice American passport.

While that can sound splendid, as having dual citizenship seems advantageous, it’s actually a tax nightmare.

All US citizens abroad are subject to the Foreign Account Tax Compliance Act (FATCA), including royalty. There’s no exception for being related to the sovereign of another nation. Nor does the United Kingdom get to simply declare the newest bundle of royal joy a UK citizen without any legal ties to the United States. And while you or I may be able to sneak a baby that hasn’t set foot in the United States past the watchful eye of the IRS, the Duke and Duchess of Sussex don’t have a chance.

To keep reading, click here: Welcome to Tax Hell, Little Earl of Sussex

{ 8 comments… read them below or add one }

grannybunny May 7, 2019 at 3:42 pm

Yes, poor Baby Boy Sussex; it must be “hell” indeed to be born into one of the richest families on Earth! 🙂

Reply

Dorothy Young May 7, 2019 at 3:56 pm

Yeah, cry me a River. I suspect this child has all the professional help he needs to minimize his tax burden — like his great-grandmother who for years accepted farm subsidies on properties she owned in the US.

Incidentally, the baby Isn’t the Earl of Essex. Protocol dictates he’ll use his dad’s first collateral title, Earl of Dumbarton.

Reply

Jenny Boxer May 7, 2019 at 7:40 pm

Of course the United States wants their money. Tax and spend, tax and spend. The current philosophy is that they’ll tax the crap out of the rich to give to the middle class well as the poor. Why work?

Reply

Frances May 7, 2019 at 10:48 pm

Sorry, but the US taxes the middle class, not the rich. The rich get tax breaks, the poor get hand outs and the rest of us are taxed to death.

Reply

Sharp Pencil May 8, 2019 at 3:36 pm

Not so. The upper 10% earned 47% of Adjusted Gross Income (AGI), and paid 69% of income tax revenue collected. The “upper 10%” begins at an AGI of $140,000/year.

However, I feel little sympathy for the 10%ers’ “plight”. If the standard deduction was raised to $140,000, and a simple 52% rate applied to the excess, the IRS should collect the same revenue.
https://taxfoundation.org/summary-latest-federal-income-tax-data-2018-update/

Reply

grannybunny May 9, 2019 at 12:44 pm

The Tax Foundation is not a reliable source. The income and tax figures you cited are not correct.

Reply

Sharp Pencil May 9, 2019 at 2:10 pm

The Tax Foundation is deemed factually accurate, with a rightist “spin” on interpretation of the facts. I’m ignoring their “take” and giving a more leftist interpretation of the summary data. If you can find countervailing data, say from the Tax Policy Center, I’d be happy to see it.
https://mediabiasfactcheck.com/tax-foundation/

Reply

MariaRose May 7, 2019 at 10:00 pm

What income will this baby be earning that needs to be taxed? I am quite sure Meghan has looked into all tax consequences of being an American citizen living abroad and the result of her children being classified as American citizens. Whatever “income” level, I am sure she has tax lawyers to take care of that problem. No one is looking at the positive fact here–which is there is a possibility of an American gaining the throne, however, slight the chance. Now I call that payback.

Reply

Leave a Comment

Previous post:

Next post: