#1 More American Expatriates Give Up Citizenship04-26-2010, 07:40 AM
Seems like Obama taxation is doing more to run people off than the Bush Administration
WASHINGTON — Amid mounting frustration over taxation and banking problems, small but growing numbers of overseas Americans are taking the weighty step of renouncing their citizenship.
“What we have seen is a substantial change in mentality among the overseas community in the past two years,” said Jackie Bugnion, director of American Citizens Abroad, an advocacy group based in Geneva. “Before, no one would dare mention to other Americans that they were even thinking of renouncing their U.S. nationality. Now, it is an openly discussed issue.”
The Federal Register, the government publication that records such decisions, shows that 502 expatriates gave up their U.S. citizenship or permanent residency status in the last quarter of 2009. That is a tiny portion of the 5.2 million Americans estimated by the State Department to be living abroad.
Still, 502 was the largest quarterly figure in years, more than twice the total for all of 2008, and it looms larger, given how agonizing the decision can be. There were 235 renunciations in 2008 and 743 last year. Waiting periods to meet with consular officers to formalize renunciations have grown.
Anecdotally, frustrations over tax and banking questions, not political considerations, appear to be the main drivers of the surge. Expat advocates say that as it becomes more difficult for Americans to live and work abroad, it will become harder for American companies to compete.
American expats have long complained that the United States is the only industrialized country to tax citizens on income earned abroad, even when they are taxed in their country of residence, though they are allowed to exclude their first $91,400 in foreign-earned income.
I believe in Christianity as I believe that the sun has risen: not only because I see it, but because by it I see everything else.C. S. Lewis
#2 More American Expatriates Give Up Citizenship
04-26-2010, 07:58 AM
- Join Date
- Apr 2010
Can you not just reformat the stuff so that you only have 3 columns, or is the spectrum number actually important?
Last edited by georgia10; 06-16-2010 at 06:01 AM.
04-26-2010, 09:49 PM
- Join Date
- May 2008
The IRS and the Feds could care less about you moving to another country as long as you leave your money in the US and pay Fed Income Taxes. Any amount over $600 thousand is subject to an exit tax. In other words, even though you have paid Uncle Sam taxes on all of that income, the IRS is going to penalize you for moving money overseas. You also have to file an IRS form on assets held overseas when doing your income tax return. Failure will incur fines even though it was an omission rather than tax fraud.
Several days ago, a story came out that Mayor Bloomy of NYC had several hundred thousand dollars in a Bermuda bank account and other assets there. This turkey is whining about New Yorkers keeping and spending their money in the city but it's the old saying do as I say not as I do.
Income taxes have become so burdesome on Americans that living in another country at half the cost is very appealing. Middle aged and senior citizens are also getting squeezed by state taxes and fees. Living on S.S. is becoming harder and harder. Health care costs will surely rise in the next few years. In places like Panama City, a John Hopkins Hospital with many English speaking and trained doctors will put most American hospitals to shame, the cost of medical care is much lower. Mexico also has some top notch hospitals. That will be my main concern when I buy a vacation home later this year. I do not want to give up my citizenship but a second passport would be nice.
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