Another Exponential Chart: Americans Who Renounce Their Citizenship

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Another Exponential Chart: Americans Who Renounce Their Citizenship

Submitted by Tyler Durden on 06/17/2014 12:41 -0400


The American Dream appears to be less and less appealing. Following the release of the names of individuals who renounced their US citizenship (or terminated their long-term US residency) in Q1 2014, the rate of expatriation from the USA is continuing its exponential rise...


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While the catalysts are manifold, the WSJ notes that the US tax dragnet is largely responsible...

...

read more:
http://www.zerohedge.com/news/2014-...hart-americans-who-renounce-their-citizenship
 
I've lived abroad for 16 years now and as a US citizen, I still have to report my earnings overseas and pay taxes to Uncle Sam. Of course I still have to pay taxes to the countries where I have been residing. This has to be a driving factor in the trend.
 
If you do want to renounce your citizenship, you must go to a US Embassy out side the country and turn in your passport. Losing your passport means unless another country decides to issue one, you will be unable to go anywhere. It does not excuse you from tax liablities or military service obligations. You can't later change your mind.

http://travel.state.gov/content/tra...aws-policies/renunciation-of-citizenship.html

E. TAX & MILITARY OBLIGATIONS /NO ESCAPE FROM PROSECUTION

Persons who wish to renounce U.S. citizenship should be aware of the fact that renunciation of U.S. citizenship may have no effect whatsoever on his or her U.S. tax or military service obligations (contact the Internal Revenue Service or U.S. Selective Service for more information). In addition, the act of renouncing U.S. citizenship does not allow persons to avoid possible prosecution for crimes which they may have committed in the United States, or escape the repayment of financial obligations previously incurred in the United States or incurred as United States citizens abroad.

The surge to 3,000 people giving it up last year is blamed mostly on more complicated (and expensive) tax laws on Americans abroad. The US is one of but a few countries which taxes its citizens for money they earn in other countries.

http://www.newsweek.com/why-americans-abroad-are-giving-their-citizenship-256447

The number of Americans giving up their citizenship surged to 3,000 in 2013 – three times more than the previous year. And that figure is set to increase further as strict new rules affecting U.S. citizens living and working abroad swing into action next month.

Those rules – part of Fatca (the Foreign Account Tax Compliance Act) - compel foreign banks and other financial institutions to provide information to the Internal Revenue Service about Americans holding accounts. It is worded to catch as many non-compliant U.S. taxpayers as possible - those who might be stashing away money in foreign bank accounts.

But Americans complain that it is overcomplicating their tax returns, jeopardizing their jobs and, in some cases, making it impossible to obtain a simple bank account.

“U.S. citizens abroad are being treated more like criminals than ambassadors. And now thousands of Americans are forced to give up their passports with no or little tax return benefit to the U.S. Treasury,” says Elaine Knuth, an American author who has lived abroad for more than 20 years, most recently in Qatar.

The United States is the only industrialized country in the world to tax the income of its citizens based on nationality rather than residency. Citizens who earn below $97,600 annually can claim an exclusion, but the complexity of the tax laws means that most expats need the help of an accountant – a yearly expense that can easily run into the thousands even when no taxes are owed.

The extra red tape and regulatory burden of Fatca compliance is now hindering the careers of U.S. citizens abroad, says Virginia La Torre Jeker, a U.S. tax attorney in Dubai.

“I have clients telling me that their employers will no longer consider them for certain higher-level positions – for example, any that require signature authority over financial accounts or the establishment of foreign entities in the business which are held in nominee status by a corporate officer,” Jeker says. “Many are concerned they may lose their positions due to the Fatca factor.”

The 2013 IRS Tax Payer Advocate report to Congress characterized Fatca as a confiscatory, punishing legislation. For example, even when there is no intention of error, taxpayers face severe punishment. The standard penalty for unintentionally failing to file a tax return is $10,000. But the penalty for intentionally failing to file is far more.

“I went to this U.S. expat meeting, and they warned me about all these fines – thousands of dollars or even jail time – if I do anything wrong,” says Sandy Opravil, an Indiana-born housewife who now lives in Switzerland. “I could become a criminal by mistake. It was presented in such a terrifying way. So I needed to decide who I am and where I live.”

Opravil eventually relinquished her U.S. citizenship in February 2014. “The bank told us, 'When your mortgage comes up for renewal, we can’t guarantee we’ll still be doing business with Americans.’ The message was pretty clear – you’re in an insecure position. Since I’ve been here for 30 years and all my ties are here, I decided to renounce my citizenship and live in one country.”

Employing a U.S. citizen now presents a significant compliance risk for businesses outside the U.S., says Robert W. Wood, a tax attorney with Wood LLP and a tax columnist for Forbes. “I have had clients comment that being an American executive overseas is now less attractive than being non-American,” says Wood. “American status may be a strike against a person in a job contest or contest for a promotion.”

Ignorance about Fatca is getting Americans into trouble. “There are people out there who are breaking the law without knowing they are breaking the law,” says David McKeegan, co-founder of Greenback Expat Tax Services. “The IRS doesn’t write things in a way that most people can understand it.”
More at link.

While 3,000 Americans gave up their citizenship, about 500,000 people from other countries became US citizens via naturalization last year.
 
Those rules – part of Fatca (the Foreign Account Tax Compliance Act) - compel foreign banks and other financial institutions to provide information to the Internal Revenue Service about Americans holding accounts. It is worded to catch as many non-compliant U.S. taxpayers as possible - those who might be stashing away money in foreign bank accounts.

I have a nephew who has lived in a small town in what used to be East Germany.He has a German wife and 2 kids.
He has lived there for quite a while and he will probably die there.
I doubt that there are many banks in this town,large or small.If all (the only?) bank in this town decides that it is to much paperwork to keep up with whatever the Americans are demanding and just says we won't accept Americans as customers,period,I bet he renounces his citizenship before he repatriates if those are his choices.
I have not spoken to him at all on this matter.
 
You didnt answer my question: Who is John Galt?

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John Galt's Speech mini-version [ 964 words ]


For twelve years you've been asking "Who is John Galt?" This is John Galt speaking. I'm the man who's taken away your victims and thus destroyed your world. You've heard it said that this is an age of moral crisis and that Man's sins are destroying the world. But your chief virtue has been sacrifice, and you've demanded more sacrifices at every disaster. You've sacrificed justice to mercy and happiness to duty. So why should you be afraid of the world around you?

Your world is only the product of your sacrifices. While you were dragging the men who made your happiness possible to your sacrificial altars, I beat you to it. I reached them first and told them about the game you were playing and where it would take them. I explained the consequences of your 'brother-love' morality, which they had been too innocently generous to understand. You won't find them now, when you need them more than ever.

We're on strike against your creed of unearned rewards and unrewarded duties. If you want to know how I made them quit, I told them exactly what I'm telling you tonight. I taught them the morality of Reason – that it was right to pursue one's own happiness as one's principal goal in life. I don't consider the pleasure of others my goal in life, nor do I consider my pleasure the goal of anyone else's life.

I am a trader. I earn what I get in trade for what I produce. I ask for nothing more or nothing less than what I earn. That is justice. I don't force anyone to trade with me; I only trade for mutual benefit. Force is the great evil that has no place in a rational world. One may never force another human to act against his/her judgment. If you deny a man's right to Reason, you must also deny your right to your own judgment. Yet you have allowed your world to be run by means of force, by men who claim that fear and joy are equal incentives, but that fear and force are more practical.

You've allowed such men to occupy positions of power in your world by preaching that all men are evil from the moment they're born. When men believe this, they see nothing wrong in acting in any way they please. The name of this absurdity is 'original sin'. That's inmpossible. That which is outside the possibility of choice is also outside the province of morality. To call sin that which is outside man's choice is a mockery of justice. To say that men are born with a free will but with a tendency toward evil is ridiculous. If the tendency is one of choice, it doesn't come at birth. If it is not a tendency of choice, then man's will is not free.

And then there's your 'brother-love' morality. Why is it moral to serve others, but not yourself? If enjoyment is a value, why is it moral when experienced by others, but not by you? Why is it immoral to produce something of value and keep it for yourself, when it is moral for others who haven't earned it to accept it? If it's virtuous to give, isn't it then selfish to take?

Your acceptance of the code of selflessness has made you fear the man who has a dollar less than you because it makes you feel that that dollar is rightfully his. You hate the man with a dollar more than you because the dollar he's keeping is rightfully yours. Your code has made it impossible to know when to give and when to grab.

You know that you can't give away everything and starve yourself. You've forced yourselves to live with undeserved, irrational guilt. Is it ever proper to help another man? No, if he demands it as his right or as a duty that you owe him. Yes, if it's your own free choice based on your judgment of the value of that person and his struggle. This country wasn't built by men who sought handouts. In its brilliant youth, this country showed the rest of the world what greatness was possible to Man and what happiness is possible on Earth.

Then it began apologizing for its greatness and began giving away its wealth, feeling guilty for having produced more than its neighbors. Twelve years ago, I saw what was wrong with the world and where the battle for Life had to be fought. I saw that the enemy was an inverted morality and that my acceptance of that morality was its only power. I was the first of the men who refused to give up the pursuit of his own happiness in order to serve others.

To those of you who retain some remnant of dignity and the will to live your lives for yourselves, you have the chance to make the same choice. Examine your values and understand that you must choose one side or the other. Any compromise between good and evil only hurts the good and helps the evil.

If you've understood what I've said, stop supporting your destroyers. Don't accept their philosophy. Your destroyers hold you by means of your endurance, your generosity, your innocence, and your love. Don't exhaust yourself to help build the kind of world that you see around you now. In the name of the best within you, don't sacrifice the world to those who will take away your happiness for it.

The world will change when you are ready to pronounce this oath:

I swear by my Life and my love of it that I will never live for the sake of another man,
nor ask another man to live for the sake of mine.

http://www.working-minds.com/galtmini.htm
 
Thought about it. Decided my oath to the Constitution requires me to fight here.
 
"Who is Jon Galt" is rhetorical question...BUAHAHAH HA HA...any Rand reader should know that....HA BUAHAHA
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My trolling was utmost successful.
 
HA HAHA AH AH AHA H A HA:
-rep
[h=2]Latest Reputation Received (1766 point(s) total) -- Your Reputation Power: 9[/h]

Not one of my posts were changed. Scroll up and see for your self.

P.s.

Book was pretty boring. Movies werent that good either.
 
HA HAHA AH AH AHA H A HA:
-rep


Not one of my posts were changed. Scroll up and see for your self.

P.s.

Book was pretty boring. Movies werent that good either.

Did you alter your reputation power? You don't receive 3 till you reach 2000 points and you don’t get 9 untill you reach 8000 points.
 
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