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Why expat Americans are giving up their passports

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311–320 of 411 posts

Re: Why expat Americans are giving up their passports

#311

Earlier quoted context omitted.

I lived in Nigeria during a period of violence when thousands died. One of my enduring memories was the reactions of the Americans living there at the time. They were so sure that the army would come and save them and when it didn't they were dumbfounded. When someone from the US eventually turned up after the violence had all died down all the US citizens were offered was the opportunity to be part of the convey out…

Movies perhaps?

It almost sounds like the insurance business. You're lured by the flashy ads. You sign the contract. Shit happens. The insurance company tries to weasel out if they can away with it. New insurers happily ignore the stories.

Re: Why expat Americans are giving up their passports

#312
post #289

Earlier quoted context omitted.

Yes, taxes are still an issue! Look at how the Mayor of London just had to pay capital gains taxes to the US because he was born there. He sold his primary residence, which is cap gains tax exempt in the UK, and the profit exceeded the threshold in the US, so he had to fork over money to the IRS. It's a complete joke and scam.

("NOT primarily about taxes" != "taxes are not an issue". My biggest complaint is precisely the expensive reporting requirements.)

Forms can be filled out. Look at Australia. If I want my retirement fund to be self-managed, I basically cannot because of inconsistencies in the tax treaty. And, what if I choose to live and work in Hong Kong or Singapore or the Cayman Islands? Why should the US have rights to tax my income above $100k if those states are tax-free? Did the US pay for my education? No. Not even my healthcare! The socialist states don't even do this.

Re: Why expat Americans are giving up their passports

#313
"...foreign banks to identify US citizens among their customers to US tax authorities. The penalty for failing to do so can be as high as 30% of all a bank's dealings with the USA."

So, could any new, small bank start accepting americans as costumers but completely refuse to deal with the USA, not even a tiny transfer, or charge a 50% fee for each transaction?

Would that be legal?

Re: Why expat Americans are giving up their passports

#314

Earlier quoted context omitted.

Army coming to rescue? Nope. Here's a story about the US specifically NOT going to rescue Americans in Yemen: http://www.bloombergview.com/articles/2015-04-22/americans-t... Have a look at this evacuation application: http://www.state.gov/documents/organization/211837.pdf Here's the key wording: "3. I understand that: (a) I will be billed for the cost of my/our transportation no greater than the amount of a full-fare…

Blows my mind that you people can't even vote when living abroad. As a Swiss, the embassy registers me in either my home canton or my last residential canton for votes (i.e. all the people referendums) and elections. They send me the voting letters to my Japanese home address. Free of charge. Things like this and the Flint water scandal make me want to never work in the US, even if it's just a year. Dealing with your…

This is absolutely false. All US citizens (who are otherwise eligible) living abroad can vote.

Re: Why expat Americans are giving up their passports

#315
post #187

I am an American living in Prague and will be among those to give up their citizenship. The new FBAR requirements and the recently pushed through changes that require foreign banks to report are really a huge burden. It is a significant legal risk to be an American overseas. The fines are insane for failiure to report, even if you owe no taxes! You can easilly land yourself with a $20 000 - $80 000 fine for having a…

What austerity are you talking about? That's not a US thing. There's been no austerity here; government spending has continued fairly normal growth once you factor out the stimulus spending. Although since that seems to be what a lot of EU governments are calling "austerity", perhaps we have had it.

You mean the 2013 budget sequestration never happened?

Tell that to the departments that are getting $1.1T less over an 8 year period.

Between the sequestration and the lack of budget increases, the US has been going through a period of federal austerity.

Re: Why expat Americans are giving up their passports

#316

Earlier quoted context omitted.

It seems rather strange to rescind citizenship because of tax issues, aren't there qualified tax advisors that can handle all of that for you? At least here in Germany they are quite affordable and usually pay for themselves because of the tax savings you get due to their advice. If you consult one you can also be rather confident that you don't accidentally forget about some new regulation.

In Germany they are commonplace because the German system is the most intricate snake nest of paperwork and bureaucracy. Love the country, but jesus christ how could the system ever be navigated by one person, let alone a foreigner?

Is Germany really as convoluted, or more convoluted, than the US case law, the patchwork of local tax legislation in the US, or the US tax code, for example? I never understood how those things could ever be navigated by one person.

Re: Why expat Americans are giving up their passports

#317
post #9

American citizens have to pay $2,350 to renounce citizenship? What kind of paperwork costs that much? (Or, why not just add more paperwork and charge $100K?) http://www.greenbacktaxservices.com/blog/renouncing-us-citiz... > 1. Consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation…

That sounds about as hard as cancelling comcast.

Except the trick of saying you're moving countries doesn't work anymore.

Re: Why expat Americans are giving up their passports

#318

I am an American living in Prague and will be among those to give up their citizenship. The new FBAR requirements and the recently pushed through changes that require foreign banks to report are really a huge burden. It is a significant legal risk to be an American overseas. The fines are insane for failiure to report, even if you owe no taxes! You can easilly land yourself with a $20 000 - $80 000 fine for having a…

Army coming to rescue? Nope. Here's a story about the US specifically NOT going to rescue Americans in Yemen: http://www.bloombergview.com/articles/2015-04-22/americans-t... Have a look at this evacuation application: http://www.state.gov/documents/organization/211837.pdf Here's the key wording: "3. I understand that: (a) I will be billed for the cost of my/our transportation no greater than the amount of a full-fare…

You're wrong about voting: americans living abroad register in their last state of residence, and can vote in those elections. It's not illegal to do so. Most states have programs specifically to assist overseas voters, and the federal government provides overseas voting support to americans living abroad through the FPCA program. No fraud is committed.

Re: Why expat Americans are giving up their passports

#319

Earlier quoted context omitted.

Due to inflation, budgets must increase each year. If you don't increase the budget in line with inflation, it's a cut in practical terms.

A prevarication is a lie in practical terms. Automatic budget increases are justified at the end of every fiscal year by spending all of the leftover money, i.e. unneeded money that was automatically budgeted is spent on crap solely to justify getting more unneeded money.

That may happen, but like the "cadillac welfare queen" is an exception, not the rule. For most departments, they run out of money before the end of the fiscal year.

Re: Why expat Americans are giving up their passports

#320

Earlier quoted context omitted.

There was a time when Germany used to be the leading country in the world where almost all major thoughts and works were produced. Whether it was Literature, Art, Philosophy, Cinema, political thinking, Germany was the place to go (and because of close interactions, Austria). Before that, it was Arab World, before that Ancient Rome, before than Ancient Greece. Today that status belongs to America. If you want to prod…

Just so I get this straight, you are claiming that America currently is the go to place for literature, art, philosophy, cinema and political thinking? I'd accept such a claim for web scale technology and some other fields but for all of the above definitely not so much.

I missed technology and science in my list of things, but yeah that too.

If we use Nobel prizes as a metric, then US beats other countries by a wide margin in everything except Literature. (Surprisingly Germany and UK, the old world leaders still come close second, but then we ARE considering nobel prizes awarded between 1901-2014). In terms of per capita, US is ranked 19th, and UK, the only large country in terms of population ranks higher.

It's true that USA is world's third largest populous country, so in terms of absolute numbers it beats other nations hands down, but there are two things which need to be considered. If EU was a single nation with single language and no immigration restrictions, then you will get the same benefit of being in EU(400+ Nobel prizes) as much as you'd get of being in America(350+ nobel prizes), that is, more integrated intellectual networks. But EU is fragmented into different nations, and despite of being an open border, the linguistic and cultural disparities do fragment the number of people you could have been connected to.

Second point is, almost all major figures in art and literature in America have lived in NYC at some point or the other. This usually means that if you lived in NYC, there are future nobel laureates living here with whom you might be interacting. So I think that not only you need to be in America in order to access the biggest network effect of anything, you need to be in one of the larger cities like NYC or SF.

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