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Rich Americans Renounce Citizenship to Evade Taxes

Rich Americans Renounce Citizenship to Evade Taxes
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It turns out, the U.S. government doesn’t like it if you renounce your citizenship to avoid paying taxes — even more than people don’t like paying taxes. At least, that’s what Facebook co-founder Eduardo Saverin discovered after he announced that he was giving up his U.S. passport, just days before he was set to make millions from today’s Facebook IPO. Saverin, though, is not alone. Ever since the U.S. government began to crack down on tax evasion four years ago, nearly 2,000 wealthy Americans living overseas have decided to give up their citizenship to avoid paying taxes.

Why Rich Americans Want to Leave

The U.S. is the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they live, which means that rich Americans can’t avoid paying taxes by moving to, say, Switzerland. Now, with concerns about the budget deficit clogging up Congress, the government is going after tax cheats with a vengeance. This means that many wealthy expatriates, especially those who live in Switzerland, started facing pressure from banks abroad, who didn’t want to risk being charged with aiding tax evasion. Instead of coughing up the tax money they owed, many rich expats decided that holding a U.S. passport was more trouble than it was worth.

Some say that the government assumes that any American living abroad are there for “nefarious” reasons, but in reality many are there for business or leisure. However, the fact remains that many Americans do live abroad in order to evade U.S. taxes, because they apparently agree with Mitt Romney’s friend and former Bain colleague, Edward Conard, who believes that dramatic income inequality is in everyone’s best interest — so government policy should cater to those of extraordinary wealth.

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74 comments

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10:12AM PST on Feb 5, 2013

Whats will these guys do to keep their names from defamation? Will they think of charities or educative grants to the needy, or aid agents of promises to the needy?

thx.

9:49AM PDT on Aug 26, 2012

There was a time when it was a source of pride to be an American citizen. Now the USA is hated and despised by a large proportion of the rest of thw world.

11:07PM PDT on Aug 19, 2012

Perhaps we should fine those who renounce American citizenship half of their net worth...

7:37PM PDT on May 23, 2012

Does anyone really think a politician will spend money more efficiently then an individual with his own money? I applaud them for providing a service that people want need and desire. Some, like Chuck Schumer apparently think the border fence should double as an Iron curtain to keep people in. (or else)

12:30PM PDT on May 23, 2012

Thye should never be allowd back in the country

9:14AM PDT on May 23, 2012

ROTFLMAO> There is WAYYYYYYYY more socialism in the countries they are moving too. They simply have a lower tax base.

WE don't have socialism here, thats downright laughable. Well, we do……but at the top end, the corporations etc. A HUGE segment of society can't find a job………it took me 3 years to find one myself, and at half the pay too. IN fact I likely would not have gotten that job either except my son was dating a woman in this company. Your too qualified,,,,,,,I will call you when a proper opening open. You aren't qualified enough we need someone bilingual, The list of excuses was huge. MANY people went through the same process because companies laid people off at around 50 during that time period. We will eventually recover…….in fact the economy is doing better…..even housing is bouncing back very slowly. But there are few jobs. ALL, those people, just like me, WANT to work. The difference between the right and the left is the right says tuff shit. If you can't find a job then have the courtesy to vanish so we don't have to look at you. When the right and the left can finally start cooperating again…….then we will see jobs.

3:52AM PDT on May 23, 2012

Instead of renouncing their citizenship, why don't filthy rich Amerikans just move to a foreign country that refuses to extradite them for tax evasion?!

10:46PM PDT on May 22, 2012

thanks for the post

6:16PM PDT on May 22, 2012

Well said Carlos, David, and Todd

For the other 95% of my fellow care members. Are you just having a knee jerk reaction? Stop and think for a minute, you are looking at the problem totally wrong.

Why are you cheering for punishment of success people that no longer feel America is where they can create the most success? Which will create more jobs the US government stealing his money or him investing it in a business here or elsewhere. Is this the America you want to live in?

Instead how about asking why are young entrepreneurs fleeing America and what do we need to change to make them want to stay? America used to be the land of the free where people with grand ideas came to build their dreams. Sadly that is no longer the case.

We are in a global economy and there is no reversing that either we reverse course and once again make America the land of opportunity or we take a back seat while the rest of the world catches up and surpasses us.

6:04PM PDT on May 22, 2012

What do I keep saying - tax the rich and they will take their money and run.

It's ridiculous to try and tax American citizens when they live in a foreign country where they have to pay taxes to the government of that country as well.

It's not only rich people - anyone would renounce his citizenship if he had to pay taxes to two governments!

And guess what - if you renounce your US citizenship and become a citizen of another country - it's not tax evasion. Get real!

Democrats - stop spending money you don't have! That's the answer! The rich are too clever!

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