A story that I keep seeing pop up every couple of months goes over the ever rising number of U.S. citizens renouncing their citizenship. A simple search engine query shows numerous stories over the last few years document this phenomenon. During the third quarter of 2015 a record number of 1426 U.S. citizens renounced citizenship. Thus far this year 3,221 Americans have given up their citizenship. The United States unlike most countries of the world forces its citizens to pay taxes even when living and working abroad.
The Foreign Account Tax Compliance Act (FATCA) passed in 2014 surely is not helping matters, even though it is meant to stop tax evasion. It’s pretty funny that yet another law passed meant to force people to pay more taxes would have such an effect. The passage of the FACTA has lead numerous banks to simply stop maintaining accounts for U.S. citizens.
“The U.S. Foreign Account Tax Compliance Act, which requires businesses to report all assets held by Americans, aims to recoup the hundreds of billions the U.S. says it loses each year from tax evasion. But it’s also leading global banks big and small to dump U.S. customers rather than wrestle with the complicated law. ”
The CNN Money article just gets better and better:
“Proper compliance — which means reporting everything from basic savings accounts, pension funds, investments, and more — could easily cost institutions millions each year, he estimated. And penalties are severe; businesses face a 30% tax on U.S.-sourced income if they fail to comply.”
Laws meant to take even more money from citizens are backfiring? Who would’ve guessed that one? Certainly not any progressives would see the fault in raising tax rates or adding numerous regulations. I’m sure that progs would say something about everyone needing to pay their fair share even though consumption taxes (sales tax, gasoline tax, etc.) are what is used to fund infrastructure. Loyal Party members (and the Internal Revenue Service) might also find it hard to believe that a citizen should get keep more than a minority of their income. Surely, the United States will soon complete its conversion to the United Socialist States of America (U.S.S.A) and turn into a worker’s paradise like East Germany, Cuba, Detroit, Venezuela, or Greece.
The number of U.S. citizens is still pretty small and I believe that it will increase rapidly. It’s a progressive goal to have less rich people in the United States and they may yet get what they desire. I imagine that the intent was to make us all equal rather than allowing people to leave though.
Further reading for anyone interested: