Record Numbers Renouncing US Citizenship
Probably to avoid tax crackdown
By Ruth Brown, Newser Staff | Suggested by TopstepTrader1
Posted Aug 12, 2013 5:08 PM CDT
Am "enhanced" United States passport lies, at left, beside an expired pierced passport.   (AP Photo/Damian Dovarganes)

(Newser) – Many American expats are following in the footsteps of Facebook co-founder Eduardo Saverin and ditching their US citizenship, the Wall Street Journal reports. In likely related news, the US is cracking down on overseas tax evaders. The number of citizenship renouncers is not huge, but it is growing in record numbers—of the 6 million Americans living outside the country, 1,130 expatriated themselves in the second quarter of this year, more than all of 2012, and the single highest quarter ever recorded, the Hill reports.

The main reason, lawyers tell the Journal, is the Foreign Account Tax Compliance Act, which requires overseas citizens and green card holders to declare their offshore assets. For wealthy citizens living in Asian countries like Hong Kong, where the individual tax rate is a maximum of 15%, the US tax burden can seem heavy—not to mention the forms they have to fill out. "My decision was less about the actual amount of taxes I had to pay, and more about the system," says a Hong Kong investment banker who renounced his citizenship. "I'm not an ultrawealthy dude. It was the hassle with all the paperwork."

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Showing 3 of 98 comments
BenDunn
Aug 15, 2013 9:01 AM CDT
Much like what business owners here have done, they have legally reduced or eliminated their tax load paid to welfare clowns in Washington, GOOD!! Good luck welfare queens and kings!!! Pay for your own service economy!! ROFLMAO!!!!
KDickley
Aug 13, 2013 10:41 PM CDT
I saw Representative Kieth Ellison, obviously a democrat, on TV a couple days ago. He said, "the government isn't broke, it has plenty of money, it just doesn't have it yet." Which means, they just haven't found a way to take it away from us, yet.
DarkFrancis
Aug 13, 2013 9:07 PM CDT
Yr an investment banker, my man. Unless yr an investment banker in name only, yr doin' better than me, Mr 'I just got my green card and my background is media and the performing arts' Poory McPoorpants.