Cost of Dropping Citizenship Keeps U.S. Earners From Exit

“The U.S. taxes citizens on their worldwide (archived link) income even if they live in another country. This year, Congress raised the maximum tax rate to 39.6 percent from 35 percent.  The increase is coupled with higher levies on capital gains and dividends for top earners of as much as 23.8 percent compared with 15 percent in 2012. States including California also have raised taxes on top earners. The U.S. government generally imposes an exit tax on high earners to discourage them from expatriating as a way of avoiding taxes.  If parents move to another country and leave money upon death to their U.S. citizen children, levies similar to the estate tax apply.”

http://www.bloomberg.com/news/2013-02-22/cost-of-dropping-citizenship-keeps-u-s-earners-from-exit.html

The Freedom Watch Staff

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