nun

One sure fire way to annoy Americans is to relinquish US citizenship. I believe that Saverin will be paying the expatriation tax and will continue to pay any US tax due, but that gets lost in the volume of the outrage. Saverin will also find it much easier to invest his money outside the US as a non-US citizen. I have also considered expatriation, not to avoid paying US tax, but to make my taxes less complicated and to make my financial life easier in the UK.

http://www.nydailynews.com/news/mone...icle-1.1079936

rpjs

I love that our esteemed Senator Schumer has proposed a law to punish the filthy tax-dodger that, er, already exists. Not that that sort of thing has ever discouraged Chuck in the past.

Bob

Do wonder in days past, why folks would try to get to the US to reduce their tax bill...

nun

There is already a 30% tax on income, gains etc paid to NRAs, but US tax treaties usually modify that, so the Schumer law is undermining US treaty obligations.

The thing is it would only come into force if you are expatriating for "tax reasons". So if you go ahead, expatriate and end up paying the greater 30% tax surely that shows that you did not expatriate for tax reasons.........also the greater 30% tax rate will reduce the capital gains that you'll have to pay in your country of residence as you'll have a greater FTC.

Giantaxe

I think this is the perfect riposte to the ever-increasing burden imposed by the IRS by FATCA etc on people who have no intention of trying to avoid their US tax obligations. The outrage is both predictable and hilarious.

scrubbedexpat099

I think it is more to do with the shock horror that somebody would not want to be a USC.

materialcontroller

Why? The overwhelming majority of people in the world do not want to be USC's either.

scrubbedexpat099

I think most USC's assume otherwise.

nun

Agreed. It's American Exceptionalism and the "shining city on the hill" thing. If you ever challenge those two holy grails Americans become very defensive and then very aggressive. Its not particular to Americans, if you gave up your UK citizenship some in the UK would react in a similar way, but probably not to the same extent.......it's a hyper sensitive subject for the Americans.

sir_eccles

It's a similar reaction one sees when the US flag is mistreated in anyway. There are certain people (more than you would normally expect it seems) that take the flag code very seriously.

oxonlad

This forum is filled with people, not from the USA, who feel otherwise. A US Passport still is - and will be for the foreseeable future - the most valuable document you can possess in the world. Period.

kimilseung

The $680.00 (or whatever it is now) is more than it is worth to me right now. Full stop.

I think Boiler is right, it is perceived as an insult to America, more important to some than lost tax.

oxonlad

I fully support Saverin's right to take his money elsewhere - American should not be turned into a financial prison. So I suppose I understand both sides of the coin.

materialcontroller

Go on then, I'll bite. What advantages does a US passport have over other, lesser, ones?

robin1234

You are spared the temptation of going to Cuba on vacation?