Libertarians and conservatives, by contrast, explain that expatriation is the result of an onerous tax system that imposes high tax rates and requires the double taxation of foreign-source income.

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The tax dodge using foreign-source income also favours companies that do business in high-tax countries: it is not obvious that the American government should support the treasuries of those countries (or, indeed, those of the handful of Caribbean islands where 95% of the sham firms are located).

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For good measure, the House bill also gets the ball rolling on tax increases on foreign-source corporate income.

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This money is the country's second largest legal source of foreign income after oil revenues.

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Banks would be required to report to the IRS any interest they pay to foreigners, but not so the US government can collect tax, but in order to let foreign governments tax this US-source income.

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Moreover, by not requiring it to be reported to the IRS, lawmakers on Capitol Hill have effectively blocked foreign governments from taxing this U.S.-source income.

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Foreign athletes and entertainers generally must pay U.S. income tax on their U.S.-source income.

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