Monday, June 13, 2011
Following up on my previous post, Number of U.S. Expatriates Doubled in 2010
(Mar. 10, 2011): Andrew Mitchel reports
that the number of individuals renouncing their U.S. citizenship (or terminating their long-term U.S. permanent residency) and expatriating from the U.S.
continued to soar in the first quarter of 2011:
Update: Wall Street Journal Wealth Report, Are Taxes Causing the Rich to Renounce Their Citizenship?:
Why is this happening? The IRS doesn’t tell us why people expatriate, or who they are or where they go. Lawyers say most are wealthy Americans who have expatriated to all manner of countries.
One argument is that they are leaving because of President Obama and the nation’s leaders.
“There is growing concern, particularly among the wealthy, about the future financial direction of the country,” said Paul L. Caron, Charles Hartsock Professor of Law at the University of Cincinnati College of Law. “This President constantly demonizes the wealthy, who undoubtedly are concerned about the tax policy that would emerge in 2012 if a re-elected Barack Obama, unconstrained by re-election concerns, finally confronts the budgetary train wreck that he has done so much to exacerbate.”
Other attorneys who specialize in helping the Americans expatriate say the reason is that the IRS is cracking down on overseas bank accounts and offshore income.