Fugitive Tax-Slaves

U.S. Expats Balk at Tax Law, Reconsider Citizenship

"Withers, in Hong Kong, says that many of its clients are giving up their green cards and U.S. citizenship after filing their taxes, deeming the tax liability to be too onerous. Among them are American expatriates who see their Singaporean and Hong Kong peers paying a far-lower income tax and aren't subject to capital-gains taxes, Mr. Krause said. The foreign grantor trust is becoming a favored method for passing on wealth, said Mr. Krause of Withers. Such trusts are 'highly advantageous' to families living abroad, he said." Continue reading →

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How Edward Snowden and others can avoid $450 U.S. citizenship renunciation fee

"Snowden would only have to demonstrate with a preponderance of evidence that he has committed an act of treason. Sufficient bi-partisan accusations from notable political figures have accused him of treason that he should be able to make such a claim. The downside would of course be that an attempt to relinquish in this manner would be tantamount to a confession to the alleged crime. I wrote a blog post in February, 2011, explaining that those who relinquish citizenship should be able to avoid the new $450 renunciation fee that the State Department had begun to assess to renunciants by making a claim to have already relinquished their US citizenship." Continue reading →

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Why Are So Many People Choosing To Leave The United States Permanently?

"Traditionally, the American people have been some of the most patriotic people on the face of the planet. So why are we now seeing such an increase in the number of people choosing to leave the United States permanently? Well, the truth is that there are a whole host of reasons why people are losing faith in this country and are deciding to leave..." Continue reading →

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Son of ex-American abroad: ‘It’s like watching a house on fire’

"In the midst of all the frenetic, shallow coverage about 'tax dodgers fleeing the country', it’s nice to see that at least one newspaper ran a front-page story which honestly portrays the various motivations that Americans abroad had for leaving the country and the reasons that they ultimately cite when they take the big step of giving up citizenship. It covers all the various reasons: tax savings, flight from U.S. militarism, government harassment of political activists abroad, and the desire to become a full member of another society. Surprised you didn’t catch this one on Twitter or Google News? This article is from four decades ago." Continue reading →

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Bitcoin: Tax haven of the future

"Tomorrow’s tax havens could be fueled by new technology like Bitcoin and Litecoin — online currencies that can be used to purchase everything from coffee to illegal drugs. The problem for government coffers: There’s no mechanism to ensure that people who make money through such digital currency report the income to the IRS. In its fight against tax evasion, the U.S. is largely focused on shining a light into bank accounts held by Americans in other countries. But experts say the rise of Bitcoin, which doesn’t require a bank account, could force the U.S. to rethink its approach." Continue reading →

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Meet Liberty’s Exiles – The Loyalists in the Revolution

“On November 25, 1783, the last British troops pulled out of New York City, bringing the American Revolution to an end. But for tens of thousands of American loyalists, the British evacuation spelled worry, not jubilation. What would happen to them in the new United States? Would they and their families be safe? Facing grave doubts about their futures, some sixty thousand loyalists—one in forty members of the American population—decided to leave their homes and become refugees elsewhere in the British Empire. They sailed for Britain, for Canada, for Jamaica, and for the Bahamas; some ventured as far as Sierra Leone and India." Continue reading →

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More Americans Going Galt

"President Obama promised he would unite the world…and he’s right. Representatives from dozens of nations have bitterly complained about an awful piece of legislation, called the Foreign Account Tax Compliance Act (FATCA), that was enacted back in 2010. They despise this unjust law because it extends the power of the IRS into the domestic affairs of other nations. Wouldn’t all of us get upset, after all, if the French government or Russian government wanted to impose their laws on things that take place within our borders? The law is so bad that it is causing a big uptick in the number of Americans who are giving up their citizenship." Continue reading →

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Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom

"Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier as the government prepares to introduce tougher asset-disclosure rules. The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside, is searching for tax cheats in offshore centers, including Switzerland, as the government tries to curb the budget deficit. Shunned by Swiss and German banks and facing tougher asset-disclosure rules under the Foreign Account Tax Compliance Act, more of the estimated 6 million Americans living overseas are weighing the cost of holding a U.S. passport." Continue reading →

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A territorial tax system would help U.S. exports, jobs and prosperity

"Germany, a territorial tax country where wage levels are higher than in the U.S. and which has the highest job-creating 12-month trade surplus in the world of $248.5 billion, has its record lowest unemployment rate in 21 years. Germany doesn’t subject its citizens living abroad on top of the tax they pay their host countries, so Germans relocate abroad and capture foreign markets. Americans, unable to survive this double taxation, stay home, and the U.S. continues to lose export market share. The 'fruits' of the U.S. world-wide tax systems are a $721.8 billion 12-month world-trade deficit and $315 billion trade deficit with China." Continue reading →

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Massive jump in people who renounced US citizenship last quarter

"We come to view our nationalities rather ironically as a big piece of our core individuality. I am an American. I am a Canadian. I am an Austrian. Instead of– I am a human being. It has taken decades… centuries even… to reach this point. So the fact that more and more people are making the gut-wrenching decision to ditch their US passports is truly a powerful trend. So what’s driving it? Taxes… and the search for liberty. For many, their tax bills constitute a financial breaking point. Particularly for people who spend most of their time outside of the United States and are constantly hamstrung by worldwide taxation and information disclosures." Continue reading →

Continue ReadingMassive jump in people who renounced US citizenship last quarter