US Expat Tax - Ex-Patriot Act To Permanently Banish Some Who Renounce US Citizenship by gjjdewald


More Info
									US Expat Tax - Ex-Patriot Act To Permanently Banish Some Who Renounce US Citizenship

Had enough of filing and paying US income taxes? Have you thought about moving beyond all the hassle
and yearly effort just to remain compliant with US taxes and regulations by giving up your US
citizenship? The idea, though perhaps well founded, now requires even more careful consideration than
ever before. The new and pending Ex-PATRIOT Act will permanently banish some individuals who
renounce their US citizenship from ever setting foot on US soil again.

New legislation that is being sponsored by US Senators Chuck Schumer and Bob Casey known as the Ex-
PATRIOT Act is moving steadily closer to becoming US law.

It is malevolent, it is brusque and rude and is the sort of knee-jerk reaction that is borne out of
desperation and has come to be expected from the US and its ever-increasing struggle to maintain
control over other peoples’ lives and, more importantly, the towering house of cards that is the United
States debt . It’s almost Kafkaesque in its seeming nightmarish assertion that if one chooses to
renounce one’s citizenship, then a whole host of penalties must follow – including permanent
banishment from the United States, itself.

The essentials of the legislation are as follows –

       If one is deemed to have renounced one’s citizenship in order to avoid US taxes, they will be
        permanently banished from re-entering the United States. This is an administrative and arbitrary
        decision and provides no recourse for the individual.
       Henceforth, if this same individual realizes capital gains from investments in the US economy,
        that individual is to be taxed at a rate of 30%. As is, no non-US citizen who does not live in the
        States pays any capital gains at all.
       This legislation is retroactive – and when it’s passed it will apply to all former US citizens who
        had renounced their citizenship within the last ten years.

In a Sunday interview with ABC News, House Speaker, John Boehner, chimed in with his support of the
bill - a big step towards its eventual passage.
Every American, whether living Stateside or abroad, takes every reasonable advantage to relieve their
tax burden. It’s not considered un-American, in fact it is proscribed by the IRS, itself, explained on the
IRS website in its commentary on the difference between tax avoidance and tax evasion –

The term "tax avoidance" describes lawful conduct, the purpose of which is to avoid the creation of a tax
liability in the first place. Whereas an evaded tax remains a tax legally owed, an avoided tax is a tax
liability that has never existed.

The Schumer furor is all about his taking umbrage over Eduardo Saverin, a founder and early investor in
Facebook, who renounced his US citizenship and now resides in Singapore, before his windfall gain of
some billions with Facebook’s IPO. Saverin was not even born in the States. He is from a wealthy family
in Brazil and, during his tenure at Harvard, befriended and helped financially back Mark Zuckerberg and
his Facebook project.

This is a young man whom the United States should be celebrating for his own good fortune and his
contribution to our economy – Instead he’s been castigated and threatened with banishment, penalties
and vilified. This is not the spirit of enterprise that the United States normally embraces and was
founded upon. Rather, it comes off as seething envy that motivates Schumer and Casey and their
legislation is a slap in the face of entrepreneurialism. Schumer’s posture is, ‘how dare Eduardo Saverin
succeed beyond his wildest dreams! How dare he continue his entrepreneurial pursuits in a place like
Singapore!’ For Schumer and Casey it is shameful. It’s the sort of behavior that should be punished and
made an example of for others who might ‘dare’ to aspire to great things.

Better idea – perhaps Chuck Schumer and Bob Casey should be banished.

Bright!Tax is the go-to cloud based US income tax preparation firm most sought after by the 6 million
Americans who are living abroad. US expat tax. All CPAs. Fanatical support. Secure. Precise. Guaranteed.

Horace Reichart | Bright!Tax

To top