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More Americans burn their bridges

May 3, 2012 @ 8:31 am (Updated: 8:33 am - 5/3/12 )

spaceneedle
We're hearing that Chinese dissident Chen Guangcheng DOESN'T want to stay in China after all. He really wants to come to the United States(AP Photo/U.S. Embassy Beijing)

Now we're hearing that Chinese dissident Chen Guangcheng DOESN'T want to stay in China after all, but really wants to come to the United States. I was happy to hear that, because we don't hear that as much as we used to -- someone desperate to come to the United States.

We USED to have people smuggling themselves in shipping containers from China, or ram shackle boats from Cuba. But now -- even the Mexicans have stopped coming.

And even worse, more born and bred Americans are leaving!

Today I saw the second article in a month about American expatriates who are renouncing their citizenship because they're fed up with US tax laws, which force US citizens pay US taxes no matter were they live.

Here's how Russia Today -- the Russian digital TV network -- covered this story:

"America may be known as the land of opportunity, but for increasing numbers, it's an offer they're not willing to take. Last year alone, an estimated 7 million people renounced their U.S. citizenship," said the report.

The number is a little exaggerated -- the official figure for 2011 is closer to 1,800, but still, it stings. Because it's permanent -- these are people who have completely given up on America as the world's beacon of freedom.

Even Superman last year -- remember?

"The latest issue of the action comic superhero features the man of steal renouncing his U.S. citizenship," said a report.

Clark Kent remained a citizen, but still -- it's like we're not special anymore.

There is ONE reassuring thing, at least, unlike China, we're willing to let you go without warning you that your wife might get beaten up.

Although we do charge a renunciation fee of $450, and if your assets are more than $2 million we charge you an exit tax.

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Comments (22)


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  • Chuck Gould wrote...
    Most Americans giving up citizenship to avoid taxation overseas must be high income individuals
    May 3, 2012 7:59 am
    If you are an American living overseas,well over $90,000 of your foreign income is tax exempt.

    $90,000 is a pretty fair salary in the US. In some of the lesser developed countries, it's still possible to earn substantially less than $90,000 US and still live like royalty.

    Many people renouncing their citizenship to avoid paying US income tax must be relatively high income individuals. It also shows where their priorities are. "Screw the US! They're not going to get a dime of tax money out of me!"

    Of course, when the doors blow off the fragile political structure on Lower San Taxhaven, and there's machine gun fire in the streets- I wonder how many minutes it will take for these same folks to be banging on the gates of the Embassy and claiming to be an American?

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  • ron prevost wrote...
    Has Gregoire heard of this $450 renunciation fee ?
    May 3, 2012 8:14 am
    Sounds like the only new tax she hasn't thought of to pay the state budget. ........................ But more to the point, even in the best of times there are Americans who give up their citizenship for any number of reasons. ,, One is that some countries that grant tax exemptions for artists and writers, for example require you become a citizen of THAT country - and I do believe our laws preclude then retaining American citizenship. ....... From the expats of the 20's, to migration to Israel, to a song writer to Ireland, it happens. ........... Actually, 1800 per year is a surprisingly LOW number - but, then, the Celtic Tiger has lost its teeth lately.
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  • istj04 wrote...
    Exit tax and "Renunciation Fee"??
    May 3, 2012 9:07 am
    So, let's see-if I close my bank accounts, leave the country, and BURN MY PASSPORT, I get charged by the United States???? How exactly DO they find me to do this? And where exactly IS the law that requires people to be a "citizen" of ANY INDIVIDUAL COUNTRY, America or otherwise? Talk about over-reaching! Its no wonder Americans are fleeing AND giving the country the finger on the way out!
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  • ron prevost wrote...
    there is an extra charge
    May 3, 2012 10:56 am
    of $150 for the finger.
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  • okisoji wrote...
    heh
    May 3, 2012 9:50 am
    man of 'steal'?
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  • SeattleNative wrote...
    @Chuck: it has little...if anything...to do with being a "high income individual"
    May 3, 2012 1:10 pm
    Imagine you live in another country. Maybe Germany. You've married a German citizen. You work there, and you plan to live out your life there.

    But being that you are still a US citizen, you're required to pay taxes on the income you earn overseas.

    Why on earth would anyone want to pay taxes in Germany AND taxes in the US, when you're getting zero benefit from those US taxes?

    It seems to me that it would be the middle class that would be hit particularly hard...

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  • Chuck Gould wrote...
    Seattle Native, you might look into the specifics of your example.....
    May 3, 2012 2:06 pm
    A United States citizen, living overseas, can earn over $90,000 (it might be up to about $95,000 these days) in foreign income *without paying any US income tax* on that income. Why would you renounce your citizenship, specifically to avoid US income taxes (one of the examples cited in Dave's post), if you are not subject to those taxes?

    The first $90-95,000 of any foreign income earned by a US citizen employed by a firm in Germany is exempt from US income taxes. Therefore (despite some frantic nitwit calling names to the contrary) it only makes sense that the group renouncing citizenship to avoid US income taxes on overseas income must consist of people earning more than $90,000 per year.

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  • Rick (4) wrote...
    @Chuck
    May 3, 2012 3:45 pm
    But you are NOT except from paying Social Security and Medicare taxes on that income. If you do not plan to use these items why continue paying for them???
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  • Chuck Gould wrote...
    Rick (4) and Social Security taxes....
    May 3, 2012 7:16 pm
    The Social Security Administration sends checks to beneficiaries all around the world. I could be wrong, but I think that if you pay into the system it continues to count toward an old-age entitlement no matter where you are living or where you earned the money. Do you have some information that suggests you can't collect Social Security if you paid into the system from a foreign country? People working for a foreign company in a foreign country do get a big bite taken for Social Security, however- it's undoubtedly the same as if you are self employed in the US as there is no matching contribution from the employer. So it would be about 15%- no small amount.

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  • sportsguru wrote...
    SeattleNative
    May 3, 2012 2:33 pm

    Germany is not a good example, I worked and lived in Germany and almost married a German National, Germany taxes you at about 40-45% of your income for the middle class folks, with those kind of taxes, you can't wait to get back to America.

    You can complain about the american tax system all you want but try living in germany and get a whiff of there tax system,lol.

    I am not discounting your argument, but using Germany was not a good example.

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  • SeattleNative wrote...
    It appears that many are now renouncing...
    May 4, 2012 8:50 am
    ...because of banking and tax regulations put in place during this current administration:

    http://www.reuters.com/article/2012/04/16/us-usa-citizen-renounce-idUSBRE83F0UF20120416

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  • sportsguru wrote...
    They can go kick rocks
    May 4, 2012 11:45 am

    I don't have any respect for ex-patriots, I have lived through a lot of administrations that had policy's that I felt that didn't benefit me and I adjusted and survived it and actually served under a president that I didn't vote for or believed in, but I survived and dealt with it.

    I love the fact that we have someone that don't have a problem doing something that is unpopular like allowing someone to hide there money behind a foreign national spouse like they use to do in Germany and other countries

    There is another poster on this blog who I actually really like and our politics are as different as night and day, but he want's to become an ex-patriot as well just because his guy didn't get the republican nomination?

    I can tell he is a good dude, but I have to take point's off for wanting to be an ex-patriot because his guy didn't win a nomination.

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