TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Wednesday, April 25, 2012

Americans Renunciating Their Citizenship: Canaries in the Tax Coal Mine?

WSJ ChartWall Street Journal: What's U.S. Citizenship Worth?, by William McGurn:

Last year, nearly 1,800 American expatriates renounced their citizenship, according to Treasury Department figures.What gives?

The cheap answer is to blame Barack Obama. After all, during his tenure, the number of Americans renouncing citizenship has taken a sharp upward turn, from an average of 482 per year under George W. Bush to 742 in 2009, to 1,534 in 2010 and to 1,788 in 2011. At the least, his calls for hiking taxes on the wealthy can't be doing anything to discourage this trend.

The other cheap answer is to blame the ever unpopular IRS—instead of the tax code itself. ... [W]hen it comes to the global inefficiencies of our tax code, these 1,800 ex-Americans are canaries in the coal mine.

Our tax code—and especially the onerous reporting requirements that come with it—is turning U.S. citizens into economic lepers. Many foreign banks refuse us as customers; some investment ventures no longer want us as partners; and some business opportunities that would have benefited Americans now benefit others. For successful foreigners, our global tax regime tells them this: Avoid entanglements with America.

http://taxprof.typepad.com/taxprof_blog/2012/04/americans.html

Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef016765a6a003970b

Listed below are links to weblogs that reference Americans Renunciating Their Citizenship: Canaries in the Tax Coal Mine?:

Comments

MSNBC assures me they are leaving because they are racist and hate Obama.

Posted by: lobo | Apr 25, 2012 7:17:25 PM