Record Number of Americans Renounce Citizenship, Taxes an Issue
Photo courtesy of U.S. Department of State, Bureau of Consular Affairs
CNN reports that the number of Americans choosing to give up their passports hit a record 3,415 last year, up 14% from 2013, and 15 times more than in 2008, when only 231 people renounced their citizenship. Experts say the recent surge is coming from expatriates who no longer want to deal with the American tax system.
Unlike most countries, the U.S. taxes all citizens on income, no matter where it is earned or where they live. One new law — the Foreign Account Tax Compliance Act — requires individuals to report certain foreign assets, and for banks to disclose all foreign accounts held by Americans. That’s in addition to another provision that mandates Americans to disclose foreign bank holdings worth more than $10,000.
In recent years, some well-known Americans have renounced their U.S. citizenship. In 2012, Facebook co-founder Eduardo Saverin renounced his citizenship. In 2013, singer Tina Turner did the same.
KJ