Taxes

One-Third of Americans Living Abroad Have Thought Actively About Renouncing Citizenship Due to Tax-Filing Requirements

It's not just fatcats feeling the pain of FATCA

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Insert Miley Cyrus joke here. ||| Treasurers.org
Treasurers.org

Tax Day is particularly bittersweet for the estimated 7-8 million American citizens living outside the United States. Not necessarily because they have to pay taxes, but that they have to deliver microscopic filings of all their overseas bank accounts and financial instruments to satisfy new Internal Revenue Service regulations introduced by the odious Foreign Account Tax Compliance Act (FATCA) of 2010. Adding injury to injury, the law's conscripting of foreign financial instutions to be IRS tax collectors has led to the predictable result of those banks no longer serving customers with American passports. Lose-lose!

Understandably, record numbers of U.S. citizens are ripping up their passports. Now a newish study of 1,546 American expats by University of Kent researcher Amanda Klekowski von Koppenfels has found that "31% have actively thought about renouncing US citizenship and 3% are in the process of doing so." Why? Primarily because "financial reporting requirements are increasingly onerous and intrusive."

Whatever, Romney! ||| The Isaac Brock Society
The Isaac Brock Society

In a direct factual refutation to FATCA supporters such as Rebecca J. Wilkins, executive director of the Financial Accountability and Corporate Transparency Coalition, who wrote with childish glee in The Hill last month that "The FATCATS are the ones with those offshore bank accounts," von Koppenfels's research shows that citizenship-renunciation is not just for the Tina Turners of the world:

Of those who have renounced or relinquished US citizenship, nearly half (43%) have annual pre-tax household incomes of under $100,000 (USD).

This is not surprising to anyone who has paid attention to this issue.

In February, I wrote that

The Republican National Committee one year ago approved a Sen. Rand Paul-led resolution to repeal FATCA; one of many indicators of whether the party will ever be worth a tinker's damn will be if it plops a FATCA repeal onto President Barack Obama's desk.

So what has the GOP-led Congress done so far? Squat-all.

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36 responses to “One-Third of Americans Living Abroad Have Thought Actively About Renouncing Citizenship Due to Tax-Filing Requirements

  1. Patriotism isn’t cheap, and they can have their renunciations when they pry them out of Chuck Schumer’s cold, dead hand.

  2. America-haters,stealing the government’s money.

  3. So is it a libertarian moment yet?

    1. No, just hang in there a moment more.

  4. http://thinkprogress.org/justi…..m-immoral/
    We need a rebuttal to his distortion

    1. Hilarious that the comments keep dredging up Denmark as their utopian Socialist society, when asked where in the world Socialism has worked, not understanding that Denmark has less regulation on business than the United States does.

      Of course most Danish people I know are inexplicably miserable when they have to pay 60%+ income tax, 25% sales tax, and four times as much for gasoline for their car (which had another 180% tax tacked onto it, meaning that Danes are forced to essentially have a second mortgage to buy a new car.)

      Despite the tax pressure, the Danish state routinely runs out of other people’s money to pay for welfare, and overall healthcare quality and other things suffer as a result. Since most Danish people cannot afford to pay twice for healthcare by going to a private clinic, they’re stuck with slow, rationed, ineffective, and expensive public healthcare.

      Recently this almost cost the life of my friend’s dad, since doctors were not taking all necessary tests or scans to determine what was in fact wrong with him.

      My whole life I heard about how people are dying in the streets of the United States because they cannot afford healthcare, but since moving here I haven’t really noticed much of that. On top of that, my private health insurance here is leagues above the quality of healthcare you get in Denmark at a much lower price.

    2. Got through half of it and couldn’t go on.

      What is with this montra of ” liberterians don’t really exist”, that the liberals are mumbling constantly?

    3. Got through half of it and couldn’t go on.

      What is with this montra of ” liberterians don’t really exist”, that the liberals are mumbling constantly?

  5. How many Americans not living abroad think actively about renouncing citizenship? I know I do.

    1. Same here. I don’t see things getting anything but worse.

      1. Add another.

        Friends of ours were at the embassy during a renunciation. They forced him to look at the flag and give his renunciation oath (or whatever the fuck they call it).

  6. What are the taxes on mars like?

    1. Astronomical, I hear.

      1. And the cost of living will take your breath away.

        1. Besides, it’s no place to raise your kids.

    2. That is an interesting question, as US taxes are based on Worldwide income, not matter where you live. I would say that Mars is decidedly not included in “Worldwide”. I would anticipate that congress will get on closing that loophole long before repealing FATCA!

      1. I have never understood how the U.S. Government can own a percentage of a citizen’s assets no matter where those assets may reside (any other country for example). By holding a U.S. passport, I am nothing more than the property of corrupt politicians, their corporate backers, and big government sloths!

        These fucking assholes don’t have any boundaries. And the electorate keeps putting these pricks in power.

        Grrrrrr!

        1. Bingo. I have read where some people are agast that not all illegals living here want citizenship. Citizenship means you and your kids and their kids become legally liable for 24 trillion dollars of federal debt.

          Why would anyone want to sign up for that when they can get the benefits without the generation slavery.

          1. Yeah I see your point. Why bother paying with generational economic slavery when you can get stuff for free?

            The illegals sound like they might be smarter than most of the people on Capitol Hill. LOL

            Its a sad state of affairs.

  7. FATCA gunna git those evil rich fatcats, and bring them down to our level!

    /the leftoid mob

  8. People living abroad are the biggest losers for democracy. Who the hell cares about what happens to some tiny fraction of people who don’t live here, or who don’t want to live here ever again? You know: other than people who care about decency and such.

    If I were in their boat, I’d just renounce and be done with it. No sense trying to appeal to people who couldn’t care less.

    1. If I were in their boat, I’d just renounce and be done with it. No sense trying to appeal to people who couldn’t care less.

      You must not have family or friends in the US you ever wish to see again.

      Thanks to another fucktard Dem, Jack Reed, you will be denied reentry to the US forever if you are believed to have renounced for tax reasons. The burden of proof is on you. Taxable income above $139,000, or a net worth in excess of $2 million and you are automatically deemed to have renounced for tax reasons. It’s fucking beautiful too. You can’t challenge the law unless you renounce, and by renouncing you lose standing.

      Republicans are frequently wrong and do awful things because they are stupid. Democrats are always wrong and only do “good” things by pure happenstance because they are irredeemably evil.

      1. Good post. If there is a better and quicker way to sum up the buggered-up US/expat tax shakedown system I haven’t heard it yet.

    2. Brian, just because someone marries a non American doesn’t mean they wish to lose their citizenship. There’s nothing “JUST” about renouncing when you don’t want to but, don’t have a choice.

  9. Here is a new idea maybe. State-mandated press/printing is a violation of freedom of press …. a liberal civil right,

    But doesn’t the mandate by the state to print and file ones return inherently violate freedom of the press ? Of course it does.

  10. I’ve been an expat for 4 years now, I consider it often.

  11. Google pay 97$ per hour my last pay check was $8500 working 1o hours a week online. My younger brother friend has been averaging 12k for months now and he works about 22 hours a week. I cant believe how easy it was once I tried it out.
    This is wha- I do…… ?????? http://www.netjob80.com

  12. There is a lawsuit against the Government of Canada for co-operating with IRS and FATCA. Plenty of CANADIAN CITIZENS LIVING IN CANADA are also U.S.A. tax slaves. These are U.S.A. citizens under U.S.A. law, but the boundary of the United States is the boundary of the United States. These persons are finding out that they are U.S.A. citizens and facing devastating financial penalties and criminal charges for failing to report bank accounts and file income taxes to IRS. Kinda like if Kenya claimed Obama as one of their citizens born overseas (in hawaii) to a Kenyan father, and then imposed income taxes and FBAR requirements on him.

    In 2013, U.S. Senator Ted Cruz found out he was a Canadian citizen under Canadian laws. Well, the people in the preceding paragraph are no more “U.S.American” than Senator Cruz was a “Canadian”.

    For info about the lawsuit go to isaacbrocksociety.ca and adcs-adsc.ca because they desperately need to raise legal fees by 1 May 2015 and it looks iffy at best.

  13. I married a Canadian, I moved here because his parents were a lot older than mine & his dad required his help. I fully intended to move back home one day but, that was not to be when our son was born with serious medical issues &we; could not get him medical insurance in the U.S. That did not mean I wanted to give up my citizenship, a country my family helped to build and where all my family still are.FATCA made it impossible for me to keep my citizenship, like it or not. We were refused a mortgage because there was an American in the household, we could not save normally &ALL; my Canadian spouses banking information was going to be scooped up and sent to the U.S. where he is not a citizen.
    FATCA is causing law abiding, 0tax owing citizens to not be able to keep their citizenship. Nina Olsen pointed this out to congress two years ago saying “some will not be ABLE to keep their citizenship. We were too low income to be able to afford to lose our home & my non American spouse makes all of our income so he was none too thrilled to be told that the financial crimes unit in another nation wanted all his private banking information just because he married me. The U.S. is causing a LOT of suffering with this misguided law. A lot of the media in the U.S. is NOT telling you the truth about FATCA.
    This is disgraceful &needs; to change asap. Even the consulate in Toronto commented when I was there “some people can’t keep it” That’s the truth.

  14. Liam . I agree that Jessica `s st0ry is really cool… on monday I got Bugatti Veyron since getting a cheque for $9519 this month and-even more than, 10 grand last munth . without a doubt its the best-work I have ever done . I started this 4 months ago and almost immediately started earning more than $80 per hour ?????? http://www.netjob80.com

  15. Re: the case of Patricia Moon reported in The Wall Street Journal. Now having given up her US citizenship, and not a “fatcat.”

    * Lived in Canada for decades
    * Received $0 in US government services over this time such as food stamps, unemployment assistance, roads, hospitals etc.
    * Made no more than $11,000 in any year
    * Never held more than $102,000 in joint accounts with her Canadian only breadwinner husband.
    * Paid all her Canadian taxes.
    * Did not owe any US tax.
    *Did not file US tax returns over the period because she did not think that she had to as she did not make that much and it did not make sense to her and no one told her before that she had to.

    #Found out that with the US FATCA law that she would have to file US tax returns and report joint financial account information of husband to the US IRS.

    #She figured that she could owe $455,000 in penalties to the IRS (but no tax, just penalties), mostly on unreported accounts. This is no joke! Actual figures as reported in The Wall Street Journal. She was financially terrorized as she thought that the US IRS would bankrupt her.

    If she lived in the US as a Canadian citizen she would owe $0 to the US and $0 to Canada – as Canada like all developed countries practice residence based taxation.

    Any US persons living overseas caught up in this must visit the message boards of The Isaac Brock Society.

  16. Most anyone in the US can not fathom such treatment as they think that the tax and penalties that you may face living in the US is the same for US persons living overseas. NOT the case. US persons living overseas are treated with the same suspicion and penalties as someone living in the US with an overseas financial account in the Cayman Islands set up with the intent of tax evasion. Would you like it if you had to report all your financial accounts to the Financial Crimes Enforcement Network including high balance, year end and details of such accounts?

    Do you have more than $10,000 in your combined accounts? Does this $10,000 figure sound like fatcat territory? All 7+ million US citizens living overseas must report their accounts or face penalties as outlined above by the Patricia Moon case. It is all Unconstitutional treatment, so says fatcalegalaction .

  17. While Americans in America think they enjoy great freedom, the above illustrates how Canadians enjoy a superior level of freedom compared to Americans; and this is the freedom to move to and live and work in another country and the freedom to leave Canada. This freedom gives Canadians, Australians, Europeans etc. a tremendous advantage over Americans in an increasingly global economy.

    This is the freedom that was fought for in the American Revolution; the freedom to be free from the constraints of an overseas country. Yet American government over the years has forgotten what was fought for so long ago, and have increasingly built up regulation and a virtual financial Berlin Wall around its citizens to keep them in by punishing harshly those who have happened to live overseas. Americans in the US live in a cage of freedom!

    The US has been charged at the UN with Human Rights violations of its own citizens in regards to its Citizenship Based Taxation. Read about this at The Isaac Brock Society.

    Any US persons living overseas caught up in all this should visit the message boards of The Isaac Brock Society.

  18. And there we have the answer to illegal immigration right before us, swap em out

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