This is CBS Eye on the World.

Here's John Batchelor.

This is CBSI on the world.

I'm John Batchel.

I welcome Veronique du Reggie of the Mercatus Center at George Mason University.

A revelation that I was completely ignorant of,

the idea that the income tax that you pay in America, you also pay when you're not in America.

That's right. The IRS regards you as a citizen of the United States, whether you live over there,

over there, over there, and when it comes to tax time,

even if you think you don't owe any taxes, and there's some rules here, you need to file the

tax accounts and lots of documents, something that I would fail to do, so you hire an accountant,

and it becomes extremely clumsy.

However, let's get to the fundamentals.

Veronika, a very good evening to you.

There is a tax credit that you get and after that, let's say you're in a country without a tax treaty with the United States.

The tax credit is now extended to 126,000. I learned from your essay at

Creator's Syndicate. Above that, what happens to the money you owe? If you earn more than

126, what do you owe the U.S.? What do you owe the country you're in? Good evening to you.

Good evening, John. Well, so we have a worldwide tax system. So it means that basically, first you have, as you said, you have to file. So that's the first thing, no matter whether you owe taxes or not. And if you're in a country that doesn't have a tax treaty with the U.S., and you have already used the foreign earned income tax credit, but also some with some

countries, you can actually utilize a tax credit for taxes that you've paid abroad.

Well, the rest of that income that is above that level will be double taxed because it will

be taxed by the foreign country. And it will be taxed by the foreign country

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