Record Numbers Of Americans Recounce Citizenship Under Obama

Tyler Durden's picture

Obama has an odd definition of recovery.

While the commander in chief may exhibit an odd delight in his numerous TV appearances by taking "credit" for the near record stock market, the pre-revision Q2 GDP boost, or a wage-less job recovery driven by a surge in part-time jobs, the reality is that as we showed yesterday, living standards for the vast majority of the population have continued to deteriorate.

But one place where Obama's track record leaves nothing open to interpretation, is in the number of Americans renouncing U.S. citizenship. According to the latest data released by the Federal Register, the number of US citizens who no longer want to be, stayed near an all-time high in the first half of the year before rules that make it harder to hide assets from tax authorities came into force.

It is unclear just who are these Americans willing to pay substantial amounts of money to expatriate, but it is safe to assume that many of them are of the "0.01%" persuasion, ironically the same social group who has, on the surface, benefited the most from Obama's, pardon, Bernanke's policies over the past 6 years.

According to Bloomberg, some 1,577 people gave up their nationality at U.S. embassies in the six months through June. While that’s a 13 percent decline from the year-earlier period, it’s only the second time there’s been a reading of more than 1,500, according to Bloomberg News calculations based on records starting in 1998.

Tougher asset-disclosure rules effective as of July 1 under the Foreign Account Tax Compliance Act, or Fatca, prompted 576 of the estimated 6 million Americans living overseas to give up their passports in the second quarter. The appeal of U.S. citizenship for expatriates faded as more than 100 Swiss banks turn over data on American clients to avoid prosecution for helping tax evaders.


“Fatca and the Swiss bank disclosure program has intensified the search for U.S. nationals beyond all measure,” said Matthew Ledvina, a U.S. tax lawyer at Anaford AG in Zurich. “It’s shocking the levels of due diligence they are going through to ensure they have cleaned house.”

Are the citizenship deniers all tax evaders? Not all, but most of them, yes.

The U.S., the only Organization for Economic Cooperation and Development nation that taxes citizens wherever they reside, stepped up the search for tax dodgers after UBS AG (UBSN) paid a $780 million penalty in 2009 and handed over data on about 4,700 accounts. Shunned by Swiss and German banks and with Fatca looming, almost 9,000 Americans living overseas gave up their passports over the past five years.


Fatca requires U.S. financial institutions to impose a 30 percent withholding tax on payments made to foreign banks that don’t agree to identify and provide information on U.S. account holders. It allows the U.S. to scoop up data from more than 77,000 institutions and 80 governments about its citizens’ overseas financial activities.


In establishing the 2010 Fatca law, Congress and President Barack Obama in effect threatened to cut off banks and other companies from easy access to the U.S. market if they didn’t pass along such information. It was projected to generate $8.7 billion over 10 years, according to the congressional Joint Committee on Taxation.

But the most direct impact of US tax policy on the richest Americans is this: "More than two-thirds of 400 U.S. expatriates surveyed in November by Zurich-based deVere Group said they had considered giving up their passports."

Losing your US passport does not come cheap mind you: "Americans with a net worth exceeding $2 million and an average income tax of at least $157,000 over the previous five years must pay an exit tax on unrealized capital gains when they renounce U.S. citizenship."

Which also happens to be a number that is not a concern to all those intent on becoming citizens of... anywhere else.

So for all those who adamantly claimed that Obama's tax policy would not result in major defections of America's uber wealthy - people who will now no longer pay any US taxes whatsoever - we present a chart showing the number of Americans who have expatriated in the past decade.

Congratulations president Obama, because this is certainly one chart which goes from the bottom left to the upper right you can take full credit for.

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wee-weed up's picture

He's not one either!

Bloppy's picture

Luckily our Hollywood friends are pouring all of their $$$ into making sure Obama's pals are in power forever:

max2205's picture

All white rich FSA'ers?

franzpick's picture

America, a great place to visit, but you wouldn't want to live, vote, pay taxes and be regulated there.

armageddon addahere's picture

Used to be a great place to visit.

McMolotov's picture

Can't have a Plan B if you're a Hobby Lobby employee! War on women!

Pickleton's picture

Americans willing to pay substantial amounts of money to expatriate


For the life of me, I dont understand this.  I get a different country's passport and move myself and my assets there.  I'm going to pay the US what?  I'm going to pay the IRS what?  It seems to me that as soon as I'm out of the country, I've severed my economic obligations and the govt can go fuck itself.

Zerozen's picture

You can do so, but you'll become persona non grata in the U.S. Don't even think about coming back to visit friends/family or even landing on American soil.

SilverRhino's picture

Yeah fuck that ....

Hi, my name is Pedro .... viva la raza blanca!!

I'm an illegal alien ahora ese!  Chu gota problemo con migo?

Harbanger's picture

I bet many are avoiding progressive US taxes.

Relentless101's picture

Imigration policy... Check.

Devotional's picture

Hey, even I have renounced it and I ain't an American Citizen o_O

With "an" Obama in your WH you are in trouble ... just my 2 cents.

Harbanger's picture

We need Elisabeth "you didn't build that teepee" Warren to set the US on the right course.

Spastica Rex's picture

We need Mitt "MA Health Care Reform" Romney to do away with Obamacare.

God, that man is sexy for an old Mormon.

Harbanger's picture

If it means not having to look at wookie, I'l take it.  What we really need to do is export our misery, that means shipping our Libs to Europe.

Spastica Rex's picture

Mitt Romney Inc. is a people, so as long as we can keep it/him and all the other important classical liberals, I guess the rest can go to Belgium.

Harbanger's picture

He's a rich bastard.  We can't have that in America.

Spastica Rex's picture

The smart thing to do is keep the rich ones, and send the poor ones on a train ride - historically speaking.

Harbanger's picture

Are you referring to joos that couldn't afford to leave?  The smart thing to do is impossible at this point, as we've slowly become a nation of over-schooled, under-educated, spoiled bitchez.

Supernova Born's picture

Mitt likes his women to wear scratchy undergarments...or nothing at all.


Oldwood's picture

That makes me uncomfortable...

Not Too Important's picture

Jews that can't afford to leave?

The tribe doesn't want them, either. They're not all 'chosen', just the rich ones that 'pray' funny.

McMolotov's picture

The wealthy are more capable of renouncing their citizenship than most people. We who are of more modest means will have to stick to denouncing our citizenship for now.

Harbanger's picture

Just like any banana republic with an anti-capitalist movement.  The Rich get the fuck out.

Oldwood's picture

Except for the rich that actually own the place, including the government. There is lots of talk about investing on this site but we should at least acknowldge that the very best investors were the ones who bought the government while it was still cheap. It costs more to play today, but if you already own it...well there you go!

Bill of Rights's picture

' HOPE AND CHANGE " Baybeeeeeeee!

Magnum's picture

Meanwhile guy who wrote FATCA Mr Dick Harvey parades around the world giving speeches like a celebrity, but FATCA will cost far more to implement than the taxes it collects, and FATCA makes it impossible for an American small business to setup profit-generating enterprises overseas.  Everything is upside down.  I could have Cambodian citizenship & enjoy more privileges than being American.  Expect the numbers of Americans renouncing citizenship to grow.

FlyingDutchman's picture

That's exactly what it's supposed to do : a financial berlin wall, a nation making its own citizens prisoners.

Harbanger's picture

Yep.  One or two more progressive Admins and they won't let you leave with your own money.  "You didn't build that on your own" meme will lead to, therefore it doesn't belong to you.

roadhazard's picture

Not near enough by a long shot. Summer traffic sucks here in the mountains.

Harbanger's picture

For every one wealthy person that leaves, 100,000 undocumented Democrats enter.  Do the Maff.

roadhazard's picture

You'd think Repubicans would be more concerned since Regan pardoned 11 million beaners years ago. 

All together now.

gtb's picture

Where'd you get that number?

roadhazard's picture

Like it makes a difference ?

Harbanger's picture

You'd think the bleeding heart libs would like him.  But they're full of shit because it's all about making socialist progress.  But you're not unique, there isn't a single failed socialist gov in the world that ever took responsibility for their circumstance.

roadhazard's picture

"You'd think bleeding heart libs would like him."

They don't hold a candle to the right wings insane love for Regan.


Oldwood's picture

Sure, Reagan made the same deal as the left is demanding today....amnesty rights for illegals under the promise that they will close the border. Even Reagan admitted he was fooled and wished he hadn't done it. Democrats owned the entire government for the first two years of Obama, yet didn't raise immigration reform once.

Space Animatoltipap's picture

But for one well educated hard working American that leaves the US you get thousand uneducated, criminals and other low class in return. Isn't that wonderful? Perhaps study the law of karma ...

The Carbonator's picture

Its Historic!


Remember.  EVERYTHING Obozo does is HISTxORIC.

BlindMonkey's picture

Congrats!!! The first president to depopulate the US of productive whites.

lakecity55's picture

"The most evil affliction on America is YT. Using my pen and phone, YT will be removed to FEMA camps for corporeal separation."

Bumbu Sauce's picture

The wealthy flee, and TPTB establishment imports every reprobate face tattoo'd murderer from the triangle of death in Central America; in addition to Ebola.  I can't blame them for renouncing citizenship with the Kardashian ass obsessed retards that comprise the American electorate.


How bout that Sharknado sequel?


Is 2016 a team red or team blue year?

Cannon Fodder's picture

Now if I could just find another place to go, and get a passport there, I would be glad to renounce mine...

well would be glad to find another place to go and get their passport anyway.....

Realname's picture

Obama should renounce his citizenship...oh, wait...

Syrin's picture

He did.   In Kenya.