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Record number renounces US citizenship: IRS   [Copy link] 中文

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Post time 2012-4-17 19:33:26 |Display all floors
Tue Apr 17, 2012

Nearly 1,800 Americans have in 2011 renounced their citizenships or turned in their so-called Alien Registration Cards to avoid sharing more information than necessary with the US government.

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Post time 2012-4-17 19:34:03 |Display all floors
“Disclosing joint accounts I hold with my wife and anyone I ever want to do business with - that’s just too much,” said Peter Dunn, a dual US-Canadian citizen currently residing in Canada, quoted by Reuters on Monday.

Americans living and working abroad are, according to the Foreign Account Tax Compliance Act, not only forced to pay taxes to the Internal Revenue Service (IRS), the US agency responsible for collecting taxes, but also obligated to report all their bank accounts and retirement funds to the agency.

Failure to report these details to the IRS means breaking US law, for which the penalty is up to USD 50,000 or 50 percent of any undeclared accounts held overseas.

“My wife’s account is none of their business,” said Dunn, who is married to a Canadian.

Dunn, who had earlier in the month renounced his US citizenship, said that the policies of the IRS were “driving us away.”

Marylouise Serrato, head of American Citizens Abroad, a Swiss-based organization, has also reported that many Americans are being pushed away from their citizenship due to the act.

“Americans abroad are terrified. We’ve had people pay tens of thousands of dollars in fines,” Serrato said.

“Up to this point, we never heard of anyone renouncing, or if they did, they didn’t talk about it,” said Serrato, adding that “Now, we’re seeing a lot of people speak openly about it and comes to us for information.”

The IRS had in 2011 recorded as many as 1,788 Americans renouncing their US citizenships. The number is a record high since the IRS began publishing such data in 1998. Overall, the IRS records some 1,100 renunciations a year.

An estimate of 6.3 million US citizens live abroad.
Diane Abbot (British MP): Anglos love playing divide and rule
David Cameron (British PM): Anglos caused most of the world's problems!

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Post time 2012-4-17 20:17:30 |Display all floors
The law was required as so many executives and drug dealers were exploiting loopholes in the tax system. They were laundering money, committing tax fraud and avoiding prosecution. Bank accounts in Swirzerland, the Bahamas and other Countries have been around as a dodge for over 30 years. Unfortunatly, many now suffer due to the actions of a few bad apples.
All Peter Dunn was required to do was list his accounts, not pay taxes. There are set limits of who is to report the accounts. He could've remedied the situation easily by having separate accounts, not joint. Sure it sucks eggs but thats life.
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Post time 2012-4-17 20:32:56 |Display all floors
As far as I am aware, Australians living and working outside the country don't have to pay taxes in Australia unless they earn money in Australia.

The US system seems rather strange, and I am not surprised that many US citizens abroad, are renouncing their citizenship to avoid paying the extra taxes for little benefit.

Oh, and that's basically what it's about, so no need to extrapolate it to be a rejection of western politics or capitalism or something like that.
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Post time 2012-4-17 20:37:58 |Display all floors
emucentral Post time: 2012-4-17 20:32
As far as I am aware, Australians living and working outside the country don't have to pay taxes in  ...

I don't really see it as that strange.

If you are a US citizen, there are benefits that come with that.  You can go to any US consulate and receive help if needed.  So, why wouldn't you have to pay into that system if you still want to retail full rights as a US citizen?



  
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Post time 2012-4-17 20:47:36 |Display all floors
JFenix Post time: 2012-4-17 20:37
I don't really see it as that strange.

If you are a US citizen, there are benefits that come with ...

Because when you live abroad you contribute to the image and, therefore, the economy of your country. Because most people living abroad only need their consulate during a disaster (natural or man-made). Because, if you REALLY live abroad, you do not use the services of your own country.

Anyway, why are Usanians paying taxes ? They do not have any healthcare system...
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Post time 2012-4-17 20:54:33 |Display all floors
MisterPanda Post time: 2012-4-17 20:47
Because when you live abroad you contribute to the image and, therefore, the economy of your count ...

You pay taxes for security first and foremost.

Taxes pay for not only national defense, but for police, firemen, etc.  It pays for your public defenders in court (if you fit the income requirements).

Taxes pay for all the infrastructure, roads, highways, primary education, etc.

It pays for medical care for the needy and many other social programs.

If you don't want to contribute into the system, than why be a citizen?
  
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