"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Monday, February 10, 2014

Number of Americans Who Are Renouncing Their U.S. Citizenship Soars

2013 Expatriations Increase by 221%
  • The Marxists in the Democrat Party scream to re-distribution the wealth of the rich.  But the truly rich can give up their citizenship and flee to low tax nations like Singapore or hide their billions in "non-profit" charity trusts.
  • Socialist tax increases really go after the middle classes - the small businessman who owns a plumbing company or Burger King franchise and is unable to flee America.
  • Thought for the Day  -  Where is that flat income tax the GOP has been bullshitting us about for decades?  I will die of old age before I see a flat tax passed by the "small government" GOP House.

The corrupt Treasury Department published the names of individuals who renounced their U.S. citizenship or terminated their long-term U.S. residency (“expatriated”) during the fourth quarter of 2013.

The number of published expatriates for the quarter was 630, bringing the total number of published expatriates in 2013 to 2,999.  The total for the year shatters the previous record high of 1,781 set in 2011 and is a 221% increase over the 2012 total of 932.

The U.S. is almost the only country in the world that requires its citizens that live permanently in another country to continue to file tax returns and pay taxes in the country of citizenship.  Most people, especially those living abroad, are unaware of the unique way in which the U.S. taxes its citizens and long-term residents. 

Many believe that income earned from foreign sources is not subject to U.S. tax, and that while residing overseas there is no need to file U.S. tax returns.  This is not an unreasonable belief, considering that most countries in the world operate in that way.

In the last several years, there has been increased publicity surrounding U.S. citizens who have actively attempted to hide assets overseas.  The U.S. government discovered that UBS, Switzerland’s largest bank, actively aided its American clients in hiding assets from the I.R.S. 

In 2009, UBS entered into a deferred prosecution agreement with the U.S. Department of Justice which required, among other things, that UBS cease to provide services to U.S. clients with undeclared bank accounts.  UBS additionally agreed to pay USD $780 million in fines and later agreed to disclose to the U.S. government the identities of more than 4,000 U.S. account holders suspected of evading taxes. 

The Department of Justice also publicizes its successful tax prosecutions, including prosecutions of many individuals that have attempted to hide assets overseas.

The I.R.S. has also highly publicized several offshore voluntary disclosure programs where U.S. persons can disclose previously unreported income and assets, and pay (potentially) reduced penalties with the implied agreement that there will not be a criminal prosecution.

See more at Intltax.typepad.com

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