And thanks to laws such as “FATCA,” that burden just became far more onerous.
While dumping citizenship may seem unpatriotic or smack of tax avoidance to some critics, tax lawyers blame the byzantine complexity of American tax regulations. The rules “are confusing, complex, and so complicated that even Americans with good intentions can easily find themselves running afoul of the law,” said Jeffrey Neiman, a former federal prosecutor who was involved in the government’s offshore banking probe and is now in private practice in Fort Lauderdale, Fla. “This very well may explain why we are seeing a record number of Americans renouncing their United States citizenship.”
The good news, by the way, is that Senator Rand Paul has introduced legislation to repeal the worst parts of FATCA.
But that’s not going to happen while Obama’s still in the White House, so let’s focus on the Americans who are “going Galt.”
I have mixed feelings about these rich people. Many of them did nothing to help the fight for liberty while they were U.S. citizens.
And notwithstanding my post about where I would go if America suffers a Greek-style fiscal collapse, I suspect I’ll stay in the United States and fight until my last breath. So I get a little bit irked that they escape and leave the rest of us to deal with the mess created by our political elite.
Nonetheless, I strongly believe that all individuals have the right to protect themselves from predatory government.
And when you add up the various forms of double taxation in the internal revenue code (particularly the death tax), it makes little sense for families with high net worth to stay in the United States when there are many jurisdictions around the world that will welcome them with open arms.
In other words, let’s not blame the victims and castigate Americans who redomicile in jurisdictions with better tax policy. Let’s fix the awful internal revenue code with a flat tax.
P.S. I’m ashamed to admit that France has a more pro-liberty policy on tax migration than the United States.
P.P.S. But that may not last too long. Other nations are looking to copy America’s disgraceful worldwide tax approach.
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