More Rich Americans Renounce U.S. Citizenship for Lower Taxes

2010-07-27 19:11:07

#1

Macbeth: Banned; +2,444|5584

A U.S.-born resident of Ireland recently came into some money after he and his wife sold a farm they inherited from her parents. Instead of enjoying his windfall, the man is furious at the Internal Revenue Service for penalizing him for running afoul of the agency's confusing regulations regarding the reporting of income from foreign bank accounts. He is so mad, according to his attorney, Jane Bruno, that he's considering renouncing his U.S. citizenship.

While such a move is drastic, it's also becoming increasingly common. In fact, so many people are eager to renounce their U.S. citizenship for tax reasons, that in some U.S. embassies there's a waiting list to escape from the clutches of Uncle Sam.

...
As many as 743 people with American citizenship or legal resident status renounced their U.S. citizenship in 2009 -- three times as many as in 2008 -- which resulted in a waiting list for people to say farewell to the red, white and blue at the U.S. Embassy in London, according to the Financial Times. That represents a tiny fraction of the 7 million or so Americans living abroad, but does underscore the growing unease about the Obama administration's taxation policies among the wealthy, according to experts.

...
"U.S. citizens are in a uniquely horrible position as expatriates, wherever they reside, since the U.S. is just about the only major nation which taxes its citizens regardless of their residential status," according to Tax-News.com.
...

"They are not bound to a particular location to maintain their wealth," Lesperance says, adding that many people have found they can recreate their lifestyle abroad, and in some cases -- heaven forbid -- improve it. Wealthy expatriates know that "government at all levels are going to need money" and that "things are not going to get better for us."

http://www.dailyfinance.com/story/taxes … /19560160/
So if you came into a large amount of money and the government was going to take a big chunk of it would you renounce your citizenship and move? I don't think I would since I really have no where to go.

2010-07-27 19:15:57

#2

13urnzz: Banned; +5,830|6495

Macbeth wrote:
I don't think I would since I really have no where to go.

hasn't being a member of this forum taught you, there's a whole world to go?

to answer the question, i'd consult both an accountant and an attorney, and give neither any control. i wouldn't move but i would travel. if i found a better situation than the one i'm currently enjoying, then i'd seriously consider it . . .

2010-07-27 19:20:03

#3

tuckergustav: ...; +1,590|5912|...

Well put burnzz. I have been tossing around the idea of moving out of the US anyways. So, if I were to choose to live elsewhere for any extended period of time, it would be silly to lose money to taxes in support of a place that I no longer live.

...

2010-07-27 19:25:25

#4

Jay: Bork! Bork! Bork!; +2,006|5356|London, England

Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat

2010-07-27 19:31:15

#5

tuckergustav: ...; +1,590|5912|...

This seems like a silly question...but I would rather ask it than assume one way or another...

Aren't you expected to pay taxes in a country that you are living and working anyways? So, would you be paying taxes to the US and that country?

...

2010-07-27 20:14:32

#6

lowing: Banned; +1,662|6649|USA

No one that has a choice is just going to sit by and let mooching fuckin govt. dependant liberals rob them blind, and guess what, the rich have a choice.

2010-07-27 21:24:13

#7

Catbox: forgiveness; +505|6714

Even John Kerry may want to give up his citizenship to save money lol
http://michellemalkin.com/2010/07/23/john-kerry-2/
"Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.

Isabel – Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage – was designed by Rhode Island boat designer Ted Fontaine.

But instead of berthing the vessel in Nantucket, where the senator summers with the missus, Teresa Heinz, Isabel’s hailing port is listed as “Newport” on her stern.

Could the reason be that the Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state to the south a haven – like the Cayman Islands, Bermuda and Nassau – for tax-skirting luxury yacht owners?

Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say Isabel sold for something in the neighborhood of $7 million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000."

Love is the answer

2010-07-27 21:31:30

#8

DrunkFace: Germans did 911; +427|6679|Disaster Free Zone

lowing wrote:
No one that has a choice is just going to sit by and let mooching fuckin govt. dependant liberals rob them blind, and guess what, the rich have a choice.

Everyone has a choice.

2010-07-27 21:39:16

#9

-Sh1fty-: plundering yee booty; +510|5472|Ventura, California

https://www.bigqueer.com/uploads/FuckYeah.jpg

And above your tomb, the stars will belong to us.

2010-07-27 21:44:32

#10

Jay: Bork! Bork! Bork!; +2,006|5356|London, England

Is it possible to renounce your citizenship without taking on a different citizenship? I suppose it would be difficult to move about since you wouldn't have a passport

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat

2010-07-27 21:48:52

#11

11 Bravo: Banned; +965|5235|Cleveland, Ohio

JohnG@lt wrote:
Is it possible to renounce your citizenship without taking on a different citizenship? I suppose it would be difficult to move about since you wouldn't have a passport

live in the only free country in the world........somalia

Last edited by 11 Bravo (2010-07-27 21:51:41)

2010-07-27 21:57:27

#12

Turquoise: O Canada; +1,596|6403|North Carolina

It depends on the situation, but yes, taxation could be a contributing factor. For example, if I suddenly inherited a lot of money and I was already living in Canada but had dual citizenship, then I would probably renounce my U.S. citizenship to avoid having to pay two different governments in taxes. Granted, I would probably do that for the same reason without a large inheritance if I was actually living in Canada.

Generally speaking, dual citizenship can be an expensive arrangement.

2010-07-27 22:22:16

#13

Dilbert_X: The X stands for; +1,810|6104|eXtreme to the maX

JohnG@lt wrote:
Is it possible to renounce your citizenship without taking on a different citizenship? I suppose it would be difficult to move about since you wouldn't have a passport

Tax status and citizenship are connected but not the same. Domicile is what matters.

Most countries tax authorities will argue you haven't lost your tax domicile until you prove you have taken up another.

Русский военный корабль, иди на хуй!

2010-07-28 00:23:21

#14

Varegg: Support fanatic :-); +2,206|6808|Nårvei

JohnG@lt wrote:
Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.

There is also to consider that in some countries you actually get value for your taxes ... just saying ...

Wait behind the line ..............................................................

2010-07-28 00:30:46

#15

Shahter: Zee Ruskie; +295|6773|Moscow, Russia

Varegg wrote:
JohnG@lt wrote:
Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.
There is also to consider that in some countries you actually get value for your taxes ... just saying ...

and in usa they just throw tax money away, yeah... >.<
you should all visit russia for a bit o'perspective, gents. see what they use our tax money for here.

if you open your mind too much your brain will fall out.

2010-07-28 01:20:56

#16

Mutantbear: Semi Constructive Criticism; +1,431|5963|London, England

This is serious talk?

_______________________________________________________________________________________________

2010-07-28 01:24:23

#17

Shahter: Zee Ruskie; +295|6773|Moscow, Russia

Mutantbear wrote:
This is serious talk?

well, considering what kinda OP we have here - yes, this is as serious as it could be. people renouncing their usa citizenship because of taxes are... well... completely nuts if you ask me.

if you open your mind too much your brain will fall out.

2010-07-28 03:01:09

#18

globefish23: sophisticated slacker; +334|6322|Graz, Austria

Do it like all the rich people and nouveau riche guys (F1 pilots, footballers) and "officially" live in countries like Monaco for 51% of the year, and suddenly you pay much less taxes, especially not in your original country.

Actually fits, seeing that Monaco itself was founded by bunch of pirates...

2010-07-28 04:23:08

#19

Jay: Bork! Bork! Bork!; +2,006|5356|London, England

Varegg wrote:
JohnG@lt wrote:
Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.
There is also to consider that in some countries you actually get value for your taxes ... just saying ...

While placing a yoke around your neck.

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat

2010-07-28 04:49:20

#20

max: Vela Incident; +1,652|6565|NYC / Hamburg

With nearly every country, you pay taxes where you live. But with a US citizenship, you pay taxes where you live plus US taxes. You can deduct (some) of the taxes where you live from the US ones. Even so, if you live in Switzerland you still have to pay a significant amount in extra taxes to the US

I personally know 4 US (ex-)citizens. 2 of them recently renounced their US citizenship to save on taxes. They also had other passports. One is waiting to get naturalized into Switzerland so she can drop her US citizenship. The 4th just moved to the US for work, so he obviously kept it.

_{once upon a midnight dreary, while i pron surfed, weak and weary, over many a strange and spurious site of ' hot xxx galore'. While i clicked my fav'rite bookmark, suddenly there came a warning, and my heart was filled with mourning, mourning for my dear amour, " 'Tis not possible!", i muttered, " give me back my free hardcore!"..... quoth the server, 404.}

2010-07-28 04:53:14

#21

jord: Member; +2,382|6676|The North, beyond the wall.

I believe andorra is a good tax haven...

2010-07-28 05:20:00

#22

lowing: Banned; +1,662|6649|USA

Varegg wrote:
JohnG@lt wrote:
Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.
There is also to consider that in some countries you actually get value for your taxes ... just saying ...

...........and which US subsidized country do you live it again?

2010-07-28 05:49:42

#23

Varegg: Support fanatic :-); +2,206|6808|Nårvei

JohnG@lt wrote:
Varegg wrote:
JohnG@lt wrote:
Considering that the countries I would think of moving to have higher tax rates than the US does... no, I wouldn't renounce my citizenship just to avoid US taxes.
There is also to consider that in some countries you actually get value for your taxes ... just saying ...
While placing a yoke around your neck.

Care to elaborate?

lowing wrote:
...........and which US subsidized country do you live it again?

Norway, and we manage just fine on our own thank you very much ... we have this crazy idea that a balanced budget is okay and that overspending is bad ... try it, it works ...

Wait behind the line ..............................................................

2010-07-28 05:52:54

#24

Uzique: dasein.; +2,865|6468

Macbeth wrote:
A U.S.-born resident of Ireland recently came into some money after he and his wife sold a farm they inherited from her parents. Instead of enjoying his windfall, the man is furious at the Internal Revenue Service for penalizing him for running afoul of the agency's confusing regulations regarding the reporting of income from foreign bank accounts. He is so mad, according to his attorney, Jane Bruno, that he's considering renouncing his U.S. citizenship.

While such a move is drastic, it's also becoming increasingly common. In fact, so many people are eager to renounce their U.S. citizenship for tax reasons, that in some U.S. embassies there's a waiting list to escape from the clutches of Uncle Sam.

...
As many as 743 people with American citizenship or legal resident status renounced their U.S. citizenship in 2009 -- three times as many as in 2008 -- which resulted in a waiting list for people to say farewell to the red, white and blue at the U.S. Embassy in London, according to the Financial Times. That represents a tiny fraction of the 7 million or so Americans living abroad, but does underscore the growing unease about the Obama administration's taxation policies among the wealthy, according to experts.

...
"U.S. citizens are in a uniquely horrible position as expatriates, wherever they reside, since the U.S. is just about the only major nation which taxes its citizens regardless of their residential status," according to Tax-News.com.
...

"They are not bound to a particular location to maintain their wealth," Lesperance says, adding that many people have found they can recreate their lifestyle abroad, and in some cases -- heaven forbid -- improve it. Wealthy expatriates know that "government at all levels are going to need money" and that "things are not going to get better for us."
http://www.dailyfinance.com/story/taxes … /19560160/
So if you came into a large amount of money and the government was going to take a big chunk of it would you renounce your citizenship and move? I don't think I would since I really have no where to go.

your OP question isn't very well thought out, at all...

if you renounced your citizenship, after coming into a huge amount of money, you'd have nowhere to go?

err you can go anywhere with enough money.

_{libertarian benefit collector - anti-academic super-intellectual}. _{http://mixlr.com/the-little-phrase/}

2010-07-28 06:03:56

#25

Mekstizzle: WALKER; +3,611|6619|London, England

I'd have to know how much before doing something as drastic as packing my bags and moving. If I got 2 million and 250 grand was taken out as tax, I don't think I could justify 250 grand as a basis for renouncing citizenship and moving somewhere else. Shit, still have plenty of money left. How low does one need to go?

It's the people with no lives and live to work/hoard as much money as possible that are the one's I feel sorry for.

BF2S Forums More Rich Americans Renounce U.S. Citizenship for Lower Taxes

Macbeth wrote:

lowing wrote:

JohnG@lt wrote:

JohnG@lt wrote:

JohnG@lt wrote:

Varegg wrote:

JohnG@lt wrote:

Mutantbear wrote:

Varegg wrote:

JohnG@lt wrote:

Varegg wrote:

JohnG@lt wrote:

JohnG@lt wrote:

Varegg wrote:

JohnG@lt wrote:

lowing wrote:

Macbeth wrote:

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