Comment by Yeul
15 days ago
Believe it or not but there are Americans who relinquish their passport precisely because of this reason. Patriotism is automatically assumed but we live in a globalised world.
15 days ago
Believe it or not but there are Americans who relinquish their passport precisely because of this reason. Patriotism is automatically assumed but we live in a globalised world.
The US is fairly unique in imposing an "expatriation" tax precisely to avoid this situation. The IRS taxes all of their assets as if sold on the day before expatriation.
Of course collecting taxes internationally is difficult, but anyone wealthy enough to meet the criteria will probably need to visit the US at some point.
Did you know that US has tools to claim part of your wealth even if you relinquishment the citizenship. Google "exit tax" for us citizens.
The US exit tax is a tax on your worldwide assets. The tax applies to all property that you own on the date of renunciation
Most of the times I've heard of it happening it's someone who's net worth is well below the threshold for this (indeed well below the threshold where they actually need to pay any income tax to the US government), but because of the headache of needing to file the paperwork and the fact that a lot of banks don't want to deal with US citizens due to extra requirements imposed on them by the US government (via its financial system).
Maybe the reason you haven’t heard about it is that you don’t know any billionaires?
That, and that the US is a tax haven for the super rich, so they have no reason to leave.
That seems very likely, but I'd like the names of a few billionaires to verify.