A new tax law set up to help troops and veterans, offset by taxing wealthy Americans who give up citizenship to beat the IRS, hits some others in the wallet, Portfolio reports. Long-term, legal foreign workers who return home will see unrealized capital gains taxed—potentially damaging the perception of the US as welcoming to overseas talent, say critics.
The act is "a very draconian tax with stunning liabilities," says one consultant. Other critics add it should apply only to American tax dodgers, not foreign workers who leave the country and must relinquish green cards by US law. The measure could deprive the country of wealthy immigrants, who will most likely settle for long-term visas instead of green cards.