Monday, April 26, 2010

Americans Renounce Citizenship Around the World

Americans who live overseas are renouncing their citizenship. They are finding it difficult to pay what is essentially double taxation; both to the United States and the host country. The United States is the only industrialized nation that treats its citizens this way.


There are 3 to 6 million Americans who reside abroad. In the last quarter of 2009, 502 citizens renounced their citizenship; doubling the number of all of 2008. Experts say there are thousands of applications languishing in embassies and consulates around the world.

The expansion of the federal government and its thirst for tax dollars are putting the squeeze on its citizens. All expatriates who have foreign bank accounts over $10,000 have to report to the I.R.S.


An ex-American reports his dilemma:


"Cutting my ties with America hasn't been easy," says Ben, who as a foreigner can now spend only 90 days a year in the U.S. "My family and friends think I am a traitor. But the financial burden was killing me."

More comments from ex-Americans:

Chicago native Ben loves his country and is proud to be an American. Yet the longtime resident of Melbourne has just relinquished his U.S. citizenship. "This is not something I did lightly or happily, but I saw no other choice," says Ben, a businessman who became an Australian citizen two years ago.

His words resonate with another American expatriate, John, a business owner based near Lausanne, Switzerland, who like Ben asked that his last name be withheld for fear of alienating his family in the U.S. "Giving up my U.S. citizenship is a genuine option," says the Ohio native, who recently received his Swiss passport and is considering relinquishing his American one. "I am at a breaking point — being American costs me time [and] money, but mostly aggravation."

Read more: http://www.time.com/time/world/article/0,8599,1983238,00.html#ixzz0mFaDXvZ2

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