Record number renounce U.S. to avoid income tax
Would you renounce your U.S. citizenship if it meant you didn’t have to pay an income tax?
More Americans than ever are saying “yes” to that proposition, according to the Internal Revenue Service.
A Reuters article says 1,800 people either renounced their citizenship or relinquished their ‘Green Card’ in 2011, the highest number since the IRS began publishing a list of those who’ve quit Team U.S.A.
The number that walked away in 2011 is eight times larger than those who renounced their citizenship in 2008, Reuters reports, and more than 2007, 2008 and 2009 combined.
Why are people doing it? Probably taxes.
The United States is one of the few countries to tax citizens living abroad. An estimated 6.3 million Americans living overseas have until June to file income taxes, but some apparently find the liability is greater than the benefit.
Longstanding federal law requires U.S. citizens to list offshore bank accounts, but a new law — 2010’s Foreign Account Tax Compliance Act — asks foreign banking institutions to provide the IRS with financial information that some Americans may have “forgotten” to provide. This new law likely explains the 2011 spike.
The IRS publishes the names of those who’ve decided not to pay up, a practice referred to as “name and shame” by lawyers representing the expatriates.
There’s an “exit tax” for the very rich who choose to leave. Reuters says Ted Arison, the late founder of Carnival Cruises, and Michael Dingman, a former Ford Motor Co. director, both paid to no longer be considered American.
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106 comments Add your comment
ha
April 18th, 2012
10:28 am
where’s my CHANGE?
Rubber and Glue
April 18th, 2012
10:30 am
Welcome to the Bushanation, where 50% of the population still pay NO taxes, but receive 99% of the benefits. We are officially a bloated, over governed nanny-state as a result of the Bush’s Administrations.
Bush was (is) an incompetent boob who was never re-elected.
Danny
April 18th, 2012
10:35 am
Rubber and Glue, right! but you don’t hear the Republicans saying anything about that, they wanted to keep it hush hush. They come in office tear the country down, get a democrat to fix it (Bill Clinton, Obama) campaign under their credit and if they get elected they do the same thing all over again. Clinton balanced the budget and we were in surplus, Republican came in for 8 years and ran it into the ground. Now the economy is slowly coming back and they Republicans who haven’t done one thing to help our country want to take credit for nothing. The only thing they did was be in the way and sabotage progress and spread lies so that they can keep their cushion and continue to exploit the middle class for their own benefit.
hotinatlanta
April 18th, 2012
10:38 am
If you renounce, you should not be able to EVER get it back! Shameful!!! I guess you want all the privileges and rights but none of the responsibility like the rest of us. The lady featured in this article (Ms. Eysselinck) is a trader to her country (in my eyes). Her father proudly served in the US Air Force and, even though she did not owe any taxes, she doesn’t want to pay her fare share. Ms. Eysselinck – where do you think the money came from to pay your father’s salary, pay for your family benefits, etc.? TAXES!!! If you renounce – you should be kicked out of the US. If you live abroad, you should not be allowed to come back here!
Truth Seeker
April 18th, 2012
10:40 am
The GOP often states that half of Americans do not pay taxes. In truth, about half of Americans do not pay a federal income tax. Other taxes, such as payroll taxes and state, local and sales taxes are not included in the statement. As a percentage of the federal governments income, the highest income earners pay the highest percentage of taxes. We have a progressive tax system, and the higher your income the higher your payments. However, I am concerned that 50% of Americans are paying virtually no income tax. I am not concerned that our highest earners pay more taxes. There is another concern too. Prior to the Great Depression the gap between low income and high income in America grew to what was considered a remarkable rate. Many historians say this was a key factor in the Great Depression. Over the last 30 years since we lowered the top income tax rate from >70% to about 30% the gap has grown dramatically. I am not a Democrat, but Obama is correct in attempting to tax our highest income earners. As a matter of historical record they are paying the lowest share in modern history. Unfortunately, Obama will not pair his call for higher taxes on the rich for fiscal responsibility for the government. These go hand in hand, and neither side of the political spectrum is willing to compromise so we continue with the insane path of lower taxes and higher spending.
NORRY
April 18th, 2012
10:40 am
I personally know someone who has come to the US, applied for Social Security, and then went back to their home country to live. They receive nothing from their home country, they live off the monthly SS check. All paid by the US taxpayer. Nice deal.
Richie
April 18th, 2012
10:43 am
If 1800 is a record breaking number we have no problem! This is definitely not a real story just fillings. Out of 200+ million people losing 1,800 is so immaterial!!
common man
April 18th, 2012
10:46 am
Baby–there is a difference between income tax and capital gains tax. Just because the “1%” pay a lower income tax rate it is more than made up for in capital gains taxes.
Edward– be thankful that there are ignorant GOP supporters out there who fight for this country so that you have the freedom and to post your retarded leftest views in this website.
wendell
April 18th, 2012
10:47 am
In the 39 months since Barack Obama took the oath of office as president of the United States, the federal government’s debt has increased by $5,027,761,476,484.56.
Although he has served less than a term, Obama is now the first American president to see the federal government’s debt increase by more than $5 trillion during his time in office.
tax baby
April 18th, 2012
10:50 am
Baby – per the tax policy center, the breakout by houshold income effective federal tax rates for 2007(last year avalable) are: lowest 1/5 paid 4%, the next 2/5 paid 10.6%, the 3/5 paid 14.3%, the 4/5 paid 17.4% and the top 5/5 paid 25.1%. Please explain how the rich/top income earners are paying far less than the middle class when the statstics seem to prove the top earners on average are paying the largest percentage of THEIR income in federal taxes.