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Do immigrants live tax free for 7 years if they open a business in the US?
This is what I was told. Can anyone explain this law, or is it just an urban legend?
And IF this is true, why do they get a better deal than a natural born American? Why don't America born business owners get 7 years tax free?
8 Answers
- 2 decades agoFavorite Answer
Urban Legend. I am an immigrant and I started my own business, and I NEVER heard of that. It's just hate speech to make you hate immigrants for being hard-working and successful. Before I was naturalized, I had to pay even more taxes than now, and I had to pay social security even though I was not entitled to collect it.
- 7 years ago
Immigrants and Taxes
Legal immigrants into the U.S. commonly settle here with an official status of "resident alien," also known as a legal permanent resident or a green-card holder. These are people who have been granted the right to live and work in the U.S. permanently. Resident aliens are subject to the same tax laws as U.S. citizens. They must pay income, Social Security, Medicare and all other taxes citizens pay, and if they start businesses, those businesses are taxed like any other business.
Five-Year Wait
Resident aliens have long been required to wait at least five years before they can apply for citizenship. This waiting period, combined with a lack of understanding about the tax responsibilities of resident aliens and perhaps a certain amount of hostility toward immigrants, may provide some of the basis for urban legends that claim immigrants live entirely tax-free for their first five years in the country. Those rumors, in turn, lead to confusion about the taxes on immigrant-owned business startups.
- 2 decades ago
Urban Legend
No one lives tax free, even those who live overseas and have property here pay tax
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- extra_37Lv 42 decades ago
Not true! You are taxed on all your US source income at both the Federal and state levels. If you become a US citizen (or a resident alien), you will be taxed on your Worldwide income. Welcome to our country, now fork it over!
- 2 decades ago
from what i understand yes they can come here open a business and for 7 years not pay taxes this is why you see gas stations being sold from one family member to another after some time