Why are Americans giving up their citizenship?
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Re: Why are Americans giving up their citizenship?
#2"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live."
Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
Re: Why are Americans giving up their citizenship?
#3"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live." Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
Yes, being a US citizen requires you to pay the US tax, even though you live in a different country, work in that country and already pay tax in that country.
It's been like that for a long time already, pretty rediculous of you ask me!
Re: Why are Americans giving up their citizenship?
#4"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live." Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
France was also trying to do that recently, since the government there spends way more than they can hope to "steal" from their citizens. They thought it was a good idea to try to tax citizens living abroad (on top of the taxes paid abroad).
If they ever did that, I can tell you a number of French citizens living abroad would just drop their French passport without hesitation.
Re: Why are Americans giving up their citizenship?
#5This has been the case for some time and has been getting worse year after year. It is pretty shameful the extent to which the US tries to attach itself to the income and wealth of people who are not even living in the country solely because they are American citizens. In some cases, compliance with US tax laws (even though not in the US) are in direct conflict with laws in jurisdictions where people actually reside. In essence, a US citizen is indentured to the US state regardless of where they live.
US law should not have jurisdiction beyond the border. It is creating a growing amount of complications for US citizens that are not within US jurisdiction but which can be held criminally liable for not following US laws even when those laws are in conflict with local laws where they actually live. The indifference of the US government to the consequences to US citizens of their overreach is typical these days.
Re: Why are Americans giving up their citizenship?
#6"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live." Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
Yes, although there is a high deductible (~$80k, as I recall). It's never been something I needed to worry about, but FATCA most definitely will be. I don't know the answer to your last question, but I've never personally heard of another nation with similar policies.
Re: Why are Americans giving up their citizenship?
#7This doesn't make sense to me. If you give up your citizenship, then presumably you have citizenship elsewhere, so why not just open a bank account under your foreign citizenship? How is the bank to know?
The only thing I can think of is that maybe people are avoiding taxes in the US and their adopted country as well. After all, many countries Americans move to have such high tax rates that after deductions, their US tax liability would be quite small.
Re: Why are Americans giving up their citizenship?
#8"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live." Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
According to Wikipedia Eritrea also has a citizenship based tax system. They do however use the metric system over there.
Re: Why are Americans giving up their citizenship?
#9"Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live." Huh?? Just because you are a US citizen, you have to pay taxes to the US wherever you live? Is any other country in the world having such policies?
US citizens living abroad are able to avail themselves of services through embassies and consulates for ordinary problems and call upon the USMC etc. for assistance with extraordinary ones.
Re: Why are Americans giving up their citizenship?
#10So the US has no concept of tax residency?