Why More U.S. Expatriates Are Turning In Their Passports
Time recently published an article talking about how more Americans abroad are giving up their citizenship mostly due to heavier taxation.
On a related note, I recently wrote a piece interviewing Andy Coyne from Association of Americans Resident Overseas (AARO) for the April newsletter of My American Market (pages 4-5), and taxation is one of the main topics.
This is certainly a controversial issue, giving up U.S. citizenship. Have any of my readers done this or are considering doing this? Why or why not?
excerpts from the Time article:
John says that since he moved to Europe 25 years ago, U.S. tax regulations have become more and more burdensome. “Every time I turn around, I get smacked in the face with some new restriction as a result of being a U.S. citizen abroad,” he says. And because the U.S. government requires other countries to abide by its banking and financial rules when dealing with expatriates, Americans living abroad are often denied services because of the increasingly complex legalities and logistics involved in serving U.S. customers. Many U.S. expats report being turned away by banks and other institutions in their countries of residence only because they are American, according to American Citizens Abroad (ACA), a Geneva-based worldwide advocacy group for expatriate U.S. citizens.
“We have become toxic citizens,” says ACA founder Andy Sundberg. Paradoxically, by relinquishing their U.S. citizenship, expats can not only escape the financial burden of double taxation, but also strengthen the U.S. economy, he says, adding, “It will become much easier for these people to get a job abroad, and to set up, own and operate private companies that can promote American exports.”