Another Exponential Chart: Record Numbers Renounce Their U.S. Citizenship In 2015

Tyler Durden's picture




 

Another year, another record number of Americans willing to not only pay the $2,350 fee, but also appear in the US Treasury's "name of shame" list published every, quarter which reveals all the now-former US citizens who have decided to hand over their US passport back to Uncle Sam and expatriate.

According to the latest US Treasury report, a record 4,279 individuals decided to give up their citizenship in 2015, up 864 from the previous full year record of 3,415, and up a stunning 560% from the peak hit during the Bush administration years. The latest Treasury report contains the names of the 1,058 former US citizens and permanent residents who gave up their passports in the period from September to December.

Below is a recent chart of showing the number of US expats over the past 10 years:

As Forbes adds, while clearly showing a troubling trend in the soaring number of expats, the published list is also incomplete, with many not counted. Surprisingly, no one seems to know exactly how big the real number is, even though the IRS and FBI both track Americans who renounce citizenship.

The main cause for the massive increase in renunciations is believed to be the Foreign Accounts Tax Compliance Act (FATCA), which came into force in 2010. The law imposes harsh penalties for non-compliance, even if people aren’t dodging it on purpose, Andrew Mitchel, an international lawyer who analyzes IRS data, told the Wall Street Journal. 

FATCA has ramped up worldwide and requires an annual Form 8938 filing if foreign assets meet a threshold. Foreign banks are sufficiently worried about keeping the IRS happy that many simply do not want American account holders. Still, leaving America can be costly. To exit, you generally must prove 5 years of IRS tax compliance. Plus, if you have a net worth greater than $2 million or have average annual net income tax for the 5 previous years of $160,000 or more, you can pay an exit tax.

"An increasing number of Americans appear to believe that having a US passport or long-term residency isn’t worth the hassle and cost of complying with US tax laws,” Mitchel said.

At the time, President Obama hailed the law as a “global standard” in countering tax evasion. It was passed by Congress in the wake of a scandal involving UBS AG bank, following disclosures made by banker–turned-whistleblower Bradley Birkenfeld in 2009. He testified that UBS had enabled its American customers to defraud the US tax authorities. The revelations forced UBS to admit it had encouraged illegal financial activity and was obliged to pay a staggering $547 million to settle the case.

Ironically, until the recent disclosure by Bloomberg following up on our own reporting about US tax havens such as Reno, Nevada which have been converted by financial olligarch families like the Rothschilds into their own personal tax evasion backyards, little did the world know just how far US hypocricy could stretch, in that while Obama was destroying tax havens around the globe and especially in Switzerland with FATCA et al, the president was quietly converting the US into the world's biggest hot money and tax-laundering haven in the world.

Finally, while we showed the past decade of US expats above, few charts do the topic of US citizenship renunciation justice, like the one shown below, courtesy of Andrew Mitchel.

 

For those curious, this is what the Federal Register's "name shame" list looks like.

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Sun, 02/07/2016 - 18:13 | 7153729 nmewn
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"Nice job Brownie."

Sun, 02/07/2016 - 18:18 | 7153748 38BWD22
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Bummer!  I'm getting kind of jealous of all those leaving.

Our Plan B is no longer so attractive (Peru).  Their corruption is back on the upswing, street crime is rising a lot, and their taxation authorities are even more abusive than in the past.

*Sigh*

Sun, 02/07/2016 - 18:23 | 7153771 nmewn
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Ya gotta be careful with it Do Chen, you may have to "downsize" to diamonds ;-)

Sun, 02/07/2016 - 21:05 | 7154188 COSMOS
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'Their corruption is back on the upswing, street crime is rising a lot, and their taxation authorities are even more abusive than in the past....'

SOUNDS A LOT LIKE THE USSA, Dochen you are not safe anywhere.  Sweden used to be idylic but now its about the worst place on Earth.  You may want to try Easter Island.

Sun, 02/07/2016 - 21:08 | 7154200 SilverDOG
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ALL CAPITOL LETTERED NAMES.

Big black law book formal ownership transfer.

Sun, 02/07/2016 - 22:05 | 7154345 38BWD22
38BWD22's picture

 

 

Maybe Singapore?  Never been there, but I hear it's nice this time of year.  They might require a very high minimum net worth though.

No Peruvian food there either I imagine.  I would probably wind up losing weight (in my case, not good).  Hey, good food matters!

Mon, 02/08/2016 - 13:11 | 7156112 peddling-fiction
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Don´t spit or throw cigarettes on the street or you will get caned in Singapore.

Sun, 02/07/2016 - 22:42 | 7154456 Oldwood
Oldwood's picture

Mars is looking better all the time.

Sun, 02/07/2016 - 23:34 | 7154562 COSMOS
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'Mars needs women...'

Mon, 02/08/2016 - 05:16 | 7154871 XuscitizenSweden
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RE:  COSMOS  "Sweden used to be idylic but now its about the worst place on Earth......"

___________________________________________________

BS.

Sweden still beats the USofAIPAC handsdown!

Minimum 3 to 1, more likely 5-6 to 1; ie General Living Standard, Crime, Health Standard, Education Standard, Food Quality, Equality of Opportunity (Stanford Encyclopedia of Philosophy)( http://plato.stanford.edu/entries/equal-opportunity/  )........shall I continue C_ ....

 

I left the states in '78, was working in Saudi-A '79 .......

Moved to Sweden '81.

The US was a crudhole then full of fat-mouthed mongrels.

Now ..... it's a potpourri garbage dump for the 99%.

 

Last time I was in the states(2004) with the wife & kids, we stayed at the Plaza Hotel by Central Park, had the best bad-ass Cadillac to see the sights.

It had a white paint job.

Just about every motherfucker stared at us with envy; well-dressed white folks with blonde hair drove people nuts.

My teenagers were 'aghast' at jungle-no go areas; thought people were false, fat-mouthed and fat-assed.

& "fattigt och fattiga";in Swedish "poor and(with) poor people".

 

Dream On C_.

Cognitive Dissonance? Ever Hear of It?

 

btw

Swedish Citizen for 30 years now & No Regrets Whatsoever.

Mon, 02/08/2016 - 13:03 | 7156078 peddling-fiction
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Easter Island natives are not fond of newbies there (think Hawai) and even if it is part of Chile, it has special rules regarding relocation there, that they achieved through a violent protest that nearly ended badly.

Sun, 02/07/2016 - 18:35 | 7153814 RaceToTheBottom
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It would be interesting to plot not just the numbers of people but the net worth and or their salaries.
It would exand the discussion a lot.

Sun, 02/07/2016 - 18:38 | 7153824 Normalcy Bias
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Does anyone here not think that the actual number is far higher?

They lie about everything else...

Sun, 02/07/2016 - 18:48 | 7153853 CheapBastard
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<<  Their corruption is back on the upswing, street crime is rising a lot, and their taxation authorities are even more abusive than in the past. >>

 

38BW, Are you talking about Peru ... or the USA?

USA has the "Change you can believe in" effects; what  does Peru call theirs?

Ex:

 

1) Two cops shot, a crane collapse, random razor-slashing attacks and chaos and corruption at City Hall. A mosaic of snapshots of life in New York spells mounting troubles for Mayor Putz.

http://nypost.com/2016/02/06/de-blasio-gets-knocked-off-his-high-horse/

 

2) More Americans Say Crime Is Rising in U.S.

 

http://www.gallup.com/poll/186308/americans-say-crime-rising.aspx

 

 

3) Trying to Hide the Rise of Violent Crime

 

http://www.wsj.com/articles/trying-to-hide-the-rise-of-violent-crime-145...

Sun, 02/07/2016 - 18:50 | 7153860 38BWD22
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Ha ha, OK, one for you!

Sun, 02/07/2016 - 19:05 | 7153886 Cognitive Dissonance
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Soooooo each quarter the USA Corporation, also know as the United States of America, publishes a list of people no longer belonging to the US Corporation and are therefore available for purchase by rival corporations?

Cool!

How much for Heather Louise Dyke? I always wanted a Dyke after I feel in love with the Dick Van show.

Sun, 02/07/2016 - 19:27 | 7153972 lincolnsteffens
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Cog,

It is the UNITED STATES or United States that is a corporation, not the United States of America. Of course most people who think they are citizens of the United States of America because of the place of birth have been converted by fraudulent contracts into entities known as Citizens of the UNITED STATES, INC.

Sun, 02/07/2016 - 20:48 | 7154157 cro_maat
cro_maat's picture

lincolnsteffens - Exactly. There are constitutional Americans residing in the 50 states of the United States of America who are not US (District of Columbia) citizens. These are not counted or reported in the Federal Register as it would let the cat out of the bag that you don't have to become an expat to resign.

How does Apple not pay taxes but has headquarters in the USSA? The key is their choice of domicile.

Here is a question: Do corporations have more rights than human beings?

Sun, 02/07/2016 - 22:47 | 7154464 Oldwood
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Those with the greatest wealth have the greatest rights. Its really not difficult to understand. we were supposed to be a nation of laws equally assessed to all without regard to position or wealth. We have "evolved" now due to the concept of a "living" constitution rather than a literal one and also evolved into a nation of "men" who are empowered to decide who shall and who shall NOT.

Mon, 02/08/2016 - 01:23 | 7154709 PTR
PTR's picture

You been listening to BARNONE11970, Cog?

Sun, 02/07/2016 - 21:37 | 7154285 DavidisDawei
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For most US Citizens, it would be more advantageous to keep your citizenship and work outside the USA; I recall that the first $100K of income earned outside the USA is tax free - I suspect those people renouncing are the uber wealthy

Sun, 02/07/2016 - 22:06 | 7154367 Crush the cube
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I suspect most are recent combat vets, look at the last page of the attached doc closely.  They're trying to check them via the VA mental health apparatchik and giving it special funding.

Sun, 02/07/2016 - 19:19 | 7153951 lincolnsteffens
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Therein lies the problem. There are a HUGE number of countries that every few decades or so go through major government and societal upheavals like SHTF scenarios. Most of the ones that don't have a history of problems like that are in the Euro-American alliance including Australia and New Zealand. And now, ta dah! the SHTF scenario is increasing in the Western Alliance.

Where can you go where there is a calm, relatively crime free, safe banking system (cough, cough), fair tax system, no hostile neighboring countries and rule of reasonable laws that will allow you to emigrate?

Kinda narrows down the possibilities.

 

Sun, 02/07/2016 - 20:50 | 7154160 BurningFuld
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Cuba

Sun, 02/07/2016 - 22:53 | 7154480 Oldwood
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Evidently things are no so "utopic" in Cuba as many would like us to believe given the increasing number of "refugees" crossing our southern border recently. Unfortunately, whether we like it or not, or want to believe it or not, as America rots, it is taking the rest of the world with it.

It appears America is the high end of the Titanic standing above the waves, looking down on the less fortunate with some smugness, leaving only those paying attention to notice how quickly we are submerging. We should have very little comfort in still having dry socks.

Sun, 02/07/2016 - 21:39 | 7154294 DavidisDawei
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The Galapagos

Sun, 02/07/2016 - 20:11 | 7154081 bobbdobbs
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Headed to Ireland personally lots of food, water.  Also it is an island with few natural resources to draw visitors.

 

Mon, 02/08/2016 - 13:18 | 7156137 peddling-fiction
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If I were to stay in Europe, Ireland would be an option. Think island, a natural defense against "invaders".

I also was considering the Island of Madeira (Portugal) that is kind of close to the Canary Islands.

Mon, 02/08/2016 - 02:57 | 7154793 The Grim Teacher
The Grim Teacher's picture

 

I'm sure you've already considered Uruguay, great country, nice a quiet, relatively easy to get residency and a passport there. Property is not all that expensive, Montevideo is a pretty safe city, that would be my escape hatch if I were living in the USSA....

Mon, 02/08/2016 - 15:07 | 7156054 peddling-fiction
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Bolivia is looking good. Especially the city of Cochabamba.

It is the most tranquil place I have seen in Latin America. Very little street crime.

As far as taxation is concerned, it is strict, and there are "retenciones" (withholding tax) when you invoice overseas.

 

 

Sun, 02/07/2016 - 18:31 | 7153797 doctor10
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why WOULDN"T one renunciate and then take advantage of the tax haven O'bozo has created?

Sun, 02/07/2016 - 18:51 | 7153864 tarabel
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Curiously enough, he does an afternoon radio show out here in Colorado and seems like a reasonably decent sort. The Michael Brown show, for those interested in maybe checking out a feed.

Sun, 02/07/2016 - 19:00 | 7153897 Cognitive Dissonance
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Brownie is back and on the radio?

Are you sure he's the real Brownie? Because OUR Brownie wasn't capable of stringing four words together into a coherent sentence.

Sun, 02/07/2016 - 18:14 | 7153735 Dsyno
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Call me when it hits 100k exits per year.

Sun, 02/07/2016 - 18:16 | 7153742 monk27
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We won't have a country left long before that. It's more like a population exchange now...

Sun, 02/07/2016 - 18:20 | 7153759 flaunt
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That's what I was thinking... Depopulate America and repopulate with third world scum

Sun, 02/07/2016 - 18:14 | 7153736 monk27
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That "name calling" in the Federal Register, is it supposed to deter anybody ? Really ??

Sun, 02/07/2016 - 18:35 | 7153816 KnuckleDragger-X
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Your not thinking like a proper bureaucrat who thinks anything on paper MUST be important.......

Sun, 02/07/2016 - 18:15 | 7153739 franzpick
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If I hit the lottery this week, is renouncing the 1st thing to do?

Sun, 02/07/2016 - 18:21 | 7153760 nmewn
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I think I'd hire me a Greek sea captain and claim to be some put upon wayward Syrian refugee washed up on the shore of some distant island nation looking for a better life and Faaarrreee! shit.

Or maybe just buy the damned boat and say fuck it all, close call ;-)

Sun, 02/07/2016 - 21:08 | 7154199 COSMOS
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Now I like the way you think, I'll split the boat ride with you nmewn.

Mon, 02/08/2016 - 07:58 | 7155009 nmewn
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lol...you're on!

Thats kinda what we're thinkin now anyways as far as retirement, just sailing off into the sunset, wherever the wind takes us ;-)

Sun, 02/07/2016 - 18:38 | 7153825 RaceToTheBottom
RaceToTheBottom's picture

I think that what you do is back date a formation of a firm in Nevada whose business model is to buy lottery tickets and then receive the money through that firm.
Not sure if that is possible. Don't know anything.....LOL

Sun, 02/07/2016 - 19:34 | 7153997 lincolnsteffens
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Sounds like a plan. You can probably find a lawyer in Nevada willing to back date documents for a large fee. Then the problem of who to bribe in the government records office to assist. It could get very expensive.

Thel thing about the lottery is that they take  taxes out before you get any of the winnings.

Sun, 02/07/2016 - 20:55 | 7154166 cro_maat
cro_maat's picture

Unless you can prove that you are a nontaxpayer.

But it is all a moot point since the Lottery is computer generated (like the elections) and hence is as manipulated as any other ponzi scheme the USSA runs. I unfortunately do not know any of the programmers and hence do not play.

Sun, 02/07/2016 - 18:46 | 7153844 tarabel
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That might not be the best idea, since some lotteries require the players to be US citizens.

Check first, okay?

Sun, 02/07/2016 - 18:51 | 7153867 38BWD22
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Assuming outbound US citizen...:

1) Cash the damn check!

2) Wire the money to destination...

Sun, 02/07/2016 - 18:19 | 7153751 flaunt
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Part of the ongoing effort to "fundamentally transform" America into a third world nation

Sun, 02/07/2016 - 18:19 | 7153755 hound dog vigilante
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When crony socialists go after wealth, the wealth leaves.

Just imagine the exodus under President Sanders... there would no longer be a "1%" or even a "5%".  They'd leave in a heartbeat.  And what remains of the US middle class would be taxed into their graves to support the FSA.

Sun, 02/07/2016 - 18:22 | 7153766 flaunt
flaunt's picture

The idea of an exit tax is disgusting.  As if they didn't rape these people long and hard enough while they were tax slaves in America, so before they go they get one last stab in the eye... "Just in case any of you other tax livestock were thinking about following the herd."  It's truly disgusting.

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