Another Exponential Chart: Americans Who Renounce Their Citizenship

Tyler Durden's picture

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...

 

 

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

Helping boost the exodus, experts say, is a five-year-old U.S. campaign to hunt for undeclared accounts held by Americans abroad.

 

Since 2009, the government campaign has collected more than $6 billion in taxes, interest and penalties from more than 43,000 U.S. taxpayers. Federal prosecutors have filed more than 100 criminal indictments, including the high-profile case of Beanie Babies inventor Ty Warner, who last year pleaded guilty to tax evasion involving secret Swiss bank accounts.

 

The tax dragnet has also swept up many middle-income Americans living abroad, prompting some to give up their U.S. citizenship.

 

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"The increase is due to current and future changes in tax law and enforcement," said Freddi Weintraub, a New York attorney

 

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"We have reached the point where middle-class American citizens abroad are being forced to renounce—especially if they have assets and are moving toward retirement—because of taxes, paperwork and huge potential penalties," said John Richardson, a Toronto lawyer with dual U.S. and Canadian citizenship.

 

As word spreads, experts said, more Americans are likely to consider surrendering their citizenship.

 

Unlike other developed nations, the U.S. government taxes citizens on income they earn anywhere in the world.

 

 

Source: International Tax blog