Tax Leads Americans Abroad to Renounce U.S.

[MamboJoel]

Well, I never heard about this before :

http://www.nytimes.com/2006/12/18/w...&partner=rssuserland&emc=rss&pagewanted=print

In short : Above a certain revenue (~$90000/year) Americans living abroad get taxed by the US (despite the fact that they are of course taxed by the country they live in). All other countries base taxation on residency, not citizenship.
So this leads some Americans abroad o renounce their citizenship.

It's pretty ironic that the American embassy in Paris applies more and more renounciations, while more and more French citizens leave France because of the tax burden...
In fact, when fiscality is already heavy in the country you live in and you have to add American taxes I can understand that those with dual nationalities and few links left with the US renounce to their citicenzhips.

What do americans (maybe abroad) think about that?
Well, since I'm both French and American (but unfortunately still below $90000) this is kind of a revelation to me...

 

[bathsheba666]

I thought there was usually some offset agreement between the US and other countries so the individual does not pay twice?

I thought one set of taxes were allowed to be offset against the other?

 

[Atlas14]

Well, they should be taxed if they are being given the right to vote while abroad.
I think it is great if they renounce their U.S. citizenship, both countries will benefit from such an action.

 

[bhsup]

Can Americans just renounce citizenship? I didn't realize all one had to do was say "I'm not an American anymore". If they can, then I'm pretty much with Atlas on this one. Be sure not to let the door hit your arse on the way out (of citizenship), buh bye, don't come back.

 

[Aphex_Twin]

Well, they should be taxed if they are being given the right to vote while abroad.
I think it is great if they renounce their U.S. citizenship, both countries will benefit from such an action.

Doesn't this mean that if people don't want vote they shouldn't be taxed?

 

[MamboJoel]

Can Americans just renounce citizenship? I didn't realize all one had to do was say "I'm not an American anymore". If they can, then I'm pretty much with Atlas on this one. Be sure not to let the door hit your arse on the way out (of citizenship), buh bye, don't come back.

Is this cute aggressivity related to the fact you feel offended by the ones renouncing to american citizenship, this precious gift of life ?

Short story :an american couple I know have 4 French children, and the two youngests had the opportunity to be both French and American before 18. The girl took the opportunity (she's studying in the States right now), but the 17 year old boy refused it because he said he wanted to be a politician... How cute.
And while reading this, die hard conservatives hear this lovely melody in their mind "Good thing, we don't want the stupid kid, don't come back or I'd kick your butt out".
They love music

 

[bhsup]

Pretty much, yes. Want to abandon your American birthright? Fine, don't come crawling back and asking for it to be returned to you.

 

[Scuffer]

In 1996, Congress sought to stop that flow by requiring former citizens to continue filing tax returns for a decade and forbidding Americans who renounced their passports for tax reasons from visiting the United States again.

That's a bit harsh!

 

[Ansar]

Can Americans just renounce citizenship? I didn't realize all one had to do was say "I'm not an American anymore". If they can, then I'm pretty much with Atlas on this one. Be sure not to let the door hit your arse on the way out (of citizenship), buh bye, don't come back.

I remember this happened on a episode of American Dad. Stan burned their American Citizenship & Passports and said they were now Saudi Arabians.

 

[Shaihulud]

When you have the money, getting anywhere isn't a problem. America would rewelcome those who left her just as readily as any other people with money.

 

[Rik Meleet]

If you earn that much than I feel no pity for you.

 

[JollyRoger]

If you are willing to renounce your American citizenship as part of a tax savings strategy, good riddance.

 

[.Shane.]

Can Americans just renounce citizenship? I didn't realize all one had to do was say "I'm not an American anymore". If they can, then I'm pretty much with Atlas on this one. Be sure not to let the door hit your arse on the way out (of citizenship), buh bye, don't come back.

WTF? I think all this knee-jerk e-chest thumping is ridiculous. Are you guys all flinging poo while you write this? Think about it. You're an American and you live in, say, Germany working a multi-national (I have a friend who was almost in this situation). You're a professional who earns $100k American. Now, you get taxed by Germany because you live and work there. But then the US govt says that you have to pay them also?

And we do this to decent citizens while we give a whole range of companies pull the nudge-nudge wink-wink off-shore move to avoid taxes?

Just shows who runs things in the US.

If you earn that much than I feel no pity for you.

Jealous much? Funny, I feel no pity for people who, rather than work hard to make it to the top just rip those who do.

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I guess Christmas is over. Glad to see some of you make sure you check your "good will toward men" thing at the door on Jan. 1.

The sad thing is, I bet most people who do this do so quite reluctantly. They're not saying "I hate the US", they're saying "the US has made it financially impossible to remain a citizen".

 

[Rik Meleet]

If you earn that much than I feel no pity for you.

Jealous much? Funny, I feel no pity for people who, rather than work hard to make it to the top just rip those who do.

I'm never jealous. I simply fail to see any reason why someone should earn more than 40.000 Euros per year. Above that it is simply ridiculous.

 

[.Shane.]

I'm never jealous. I simply fail to see any reason why someone should earn more than 40.000 Euros per year. Above that it is simply ridiculous.

The answer is so obvious, I'm not sure bothering to explain can help you, if you don't get it already.

 

[Goonie]

Citizenship has benefits.

They should not come free.

 

[Rik Meleet]

The answer is so obvious, I'm not sure bothering to explain can help you, if you don't get it already.

Your (ungiven) answer is a political opinion, just as mine is. Please tell me what your answer is, but please don't expect me to change my mind.

 

[.Shane.]

Citizenship has benefits.

They should not come free.

ROFL, another one misses the point. The US, unlike almost every other country, potentially taxes people on income they make, even if they work and live abroad. Which, given the general anti-tax atmosphere of the US is some kind of divine irony.

 

[silver 2039]

Its ridiculous to be taxed twice like that. Once by the country you currently reside in, and again by a country you have citizenship in. When you are not in that country you do not enjoy the various amenities nor the portection it offers thus why must you pay tax for it?

I am an American living abroad and I fourtnaley do not have to do the ridiculous double taxation thing, because technically the salary is lower, but its still ridiculous.

 

[Goonie]

Not really, since my family members who earn more than 90 000$ while living in Canada and paying Canadian taxes pay next to nothing in American taxes.

It is hardly an onerous burden. More of a formality to file them if anything.