Like the hero of his latest biography, The Churchill Factor, London Mayor Boris Johnson is a dual citizen of the United States and the UK. Another sterling example of the Special Relationship at work? To the IRS, it’s just another excuse to ask for dollars—specifically, capital gains taxes on a London house that Johnson both bought and sold while living in England. The Telegraph reports:
Mr Johnson was asked about his tax affairs in an interview with the National Public Radio (NPR) in America.“The United States comes after me, would you believe it, for the — for capital gains tax on the sale of your first residence which is not taxable in Britain, but they’re trying to hit me with some bill, can you believe it?” he said.“I think, it’s absolutely outrageous. Why should I? I think, you know, I’m not a — I, you know, I haven’t lived in the United States for, you know, well, since I was five years old,” he said.
The United States is one of only two countries in the world to tax its citizens living abroad for money they make abroad (the other is Eritrea), even if they also are being taxed in that jurisdiction. If Boris should want to quit in disgust, on the other hand—well, he can’t do that either without paying his back taxes.