Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Why More and More Americans are Abandoning Their US Citizenship
The Daily Reckoning ^ | 07/03/2012 | Eric Fry

Posted on 07/04/2012 7:11:39 AM PDT by SeekAndFind

leadimage

07/03/12 Laguna Beach, California – In November, millions of Americans will trudge to their local polling places to cast votes in the hope of improving their lives here in the USA. Between now and then, a few hundred Americans will vote with their feet in the hope of improving their lives outside the USA.

Last year, nearly 1,800 Americans surrendered their citizenship. In a nation of 300 million folks, 1,800 émigrés is hardly a rush for the exits. But the recent trend is, nevertheless, intriguing.

Number of Americans Per Year Who Renounced Their US Citizenship

As recently as four years ago, only 200 people checked out of America for good. Back then, surrendering US citizenship would have seemed as unthinkable to most Americans as declining a free vacation to Hawaii to pay for a vacation in Newark. It would have seemed as crazy as:

Giving up citizenship would have seemed as incomprehensible as…go ahead, create your own simile.

Bottom line: Surrendering US citizen was absolutely unthinkable. But not anymore. Now it is “thinkable,” albeit still relatively rare. The absolute numbers are still tiny, but the trend conveys a very large message: Discontent is on the rise.

Increasingly, the used LeSabres and Augusta Municipals are winning the contest. And probably not because they are so alluring, but rather because the “Aston Martin” is starting to sputter like a used moped and “Augusta National’s” fairways are starting to sprout more weeds than its deep rough.

To be clear, your California editor remains an American citizen with a valid American passport…and no pending petitions in any American embassies to surrender his citizenship. His observations, therefore, are not personal…but they are heartfelt.

When Americans begin abandoning the “Land of the Free” to seek greater freedom elsewhere, it is time to sit up and pay attention; it is time ask yourself, “Why? Why are they leaving? What’s wrong?”

Is it just a “tax thing” or are other forces in play? Is it because folks don’t like:

Who knows the exact reason why 1,800 Americans chose to leave last year — nine times as many as left four years earlier. Certainly, each one of them had their reasons. But like a corporate insider that sells his own stock, there’s one thing you know for certain about his motives: he is not selling because he believes the stock will go up. Maybe he doesn’t believe the stock will go down, but no one sells a stock they believe will go up.

Likewise, Americans who bail on their country may not think things are going to get any worse any time soon, but they clearly do not believe things are going to get better. So far, the pitter-patter of footsteps heading for the exits is barely a murmur…but the murmur is getting louder.

Eric Fry
for The Daily Reckoning

Author Image for Eric Fry

Eric Fry

Eric J. Fry, Agora Financial’s Editorial Director, has been a specialist in international equities for nearly two decades. He was a professional portfolio manager for more than 10 years, specializing in international investment strategies and short-selling.  Following his successes in professional money management, Mr. Fry joined the Wall Street-based publishing operations of James Grant, editor of the prestigious Grant's Interest Rate Observer. Working alongside Grant, Mr. Fry produced Grant's International and Apogee Research —  institutional research products dedicated to international investment opportunities and short selling. 



TOPICS: Business/Economy; Society
KEYWORDS: americans; citizenship; expats; renouncecitizenship; uscitizens
Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

1 posted on 07/04/2012 7:11:48 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind
A considerable spike since 2009.

I wonder what the driving force behind that is?

2 posted on 07/04/2012 7:20:16 AM PDT by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Going to live in another country is one thing....giving up your U.S. citizenship is another,
Good riddance.


3 posted on 07/04/2012 7:21:33 AM PDT by nuconvert ( Khomeini promised change too // Hail, Chairman O)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

This is mainly Americans working abroad. Part of this trend is because the US is the only country which taxes income earned in foreign countries. I think one of the more recent driving issues is that now foreign banks have been given extremely burdensome new reporting requirements for Americans working abroad to the point where many are now refusing to provide service to US citizens.


4 posted on 07/04/2012 7:21:51 AM PDT by microgood
[ Post Reply | Private Reply | To 1 | View Replies]

To: EGPWS

We are a nation of 315 million. These numbers, less than 2,000 a year are statistically meaningless. The numbers are infinitesimal.


5 posted on 07/04/2012 7:24:59 AM PDT by kabar
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

6 posted on 07/04/2012 7:28:21 AM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: EGPWS

I wonder what the driving force behind that is?


I suspect it has to do with double taxation on income.

When I was working in Switzerland in the 80’s I had to still file with the IRS every year and report foreign earned income. At that time I believe anything over $75,000 per year was taxed again by the US federal government.


7 posted on 07/04/2012 7:31:24 AM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: nuconvert

But where to go? Europe is a basket case, the ME a smoldering mess, no decent place in Africa (including SA), and leftist governments in most of S. America.


8 posted on 07/04/2012 7:32:00 AM PDT by expat2
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

Its not like American citizenship means anything anymore.


9 posted on 07/04/2012 7:34:24 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hotlanta Mike; EGPWS

I am willing to bet that ALL of these Citizen renuoncers are WEALTHY folks (AKA the 1% ).

The USA is one of only 2 countries I know ( the other one being a small African country I can’t remember ) that taxes you based on your citizenship REGARDLESS of where you earned your income.

Germans who work in America and make money here are NOT taxed in Germany for the money made here. But Americans who make money in Germany are taxed IN GERMANY *AND* America.

There was a time when an ex-pat could open a Swiss account and deposit their money there without having to inform the IRS. Not anymore. America bullied Switzerland to inform the IRS of ALL American bank accounts and the Swiss CAVED.


10 posted on 07/04/2012 7:36:29 AM PDT by SeekAndFind (bOTRT)
[ Post Reply | Private Reply | To 7 | View Replies]

To: cripplecreek

RE: Its not like American citizenship means anything anymore.

Aren’t we still the land of the free and the home of the brave?


11 posted on 07/04/2012 7:37:30 AM PDT by SeekAndFind (bOTRT)
[ Post Reply | Private Reply | To 9 | View Replies]

To: expat2

RE: But where to go?

Does Facebook co-founder Eduardo Saverin know something we don’t?


12 posted on 07/04/2012 7:39:14 AM PDT by SeekAndFind (bOTRT)
[ Post Reply | Private Reply | To 8 | View Replies]

To: kabar

FWIW,there is an entire system of statistics of rare events, which (probably) would show that the increase in abandonment of citizenship are “significant,” and worthy of further study.


13 posted on 07/04/2012 7:40:12 AM PDT by Chaguito
[ Post Reply | Private Reply | To 5 | View Replies]

To: kabar

FWIW,there is an entire system of statistics of rare events, which (probably) would show that the increase in abandonment of citizenship are “significant,” and worthy of further study.

http://en.wikipedia.org/wiki/Poisson_distribution for example.


14 posted on 07/04/2012 7:41:31 AM PDT by Chaguito
[ Post Reply | Private Reply | To 5 | View Replies]

To: Chaguito
I don't think it is significant. There are plenty of factors and variables that could contribute to this "trend."

For example, the U.S. adds one international migrant (net) every 36 seconds. Immigrants account for one in 8 U.S. residents, the highest level in more than 90 years. In 1970 it was one in 21; in 1980 it was one in 16; and in 1990 it was one in 13. In a decade, it will be one in 7, the highest it has been in our history. And by 2050, one in 5 residents of the U.S. will be foreign-born.

Perhaps our growing immigrant population will result in some wishing to return back to their home country. We recognize dual nationality, but perhaps their home country does not forcing them to make this decision.

One would have to analyze who is in the 1,800 and see where they came from, their age, their income, etc. At this point, I see these data as virtually meaningless.

15 posted on 07/04/2012 7:49:21 AM PDT by kabar
[ Post Reply | Private Reply | To 14 | View Replies]

To: SeekAndFind
Aren’t we still the land of the free and the home of the brave?

That's debatable but I'm thinking more of the non citizens taking a larger and larger piece as the line between citizen and non citizen becomes blurred.
16 posted on 07/04/2012 7:50:16 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Chaguito

I would have to agree with you. If you take the net worth of those former American citizens and look at it in the long term it will have a serious effect on the USA’s bottom line.

If the trend continues to increase then the effect becomes more obvious over the short term.


17 posted on 07/04/2012 7:52:34 AM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: SeekAndFind
The USA is one of only 2 countries I know ( the other one being a small African country I can’t remember ) that taxes you based on your citizenship REGARDLESS of where you earned your income.

It's just never enough.

Other people have a right to an individuals labor and the US being a nation of rights and all....

18 posted on 07/04/2012 7:53:14 AM PDT by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 10 | View Replies]

To: SeekAndFind

“....Aren’t we still the land of the free and the home of the brave?...”

Ummmm.....no. That all died in Nov. 2008 and is so passe’.

The recent SCOTUS decision on odongocare put the final nail in the coffin. Also, old odongo had to do a world-wide tour to apologize to the entire wide world for our “braveness” over the recent course of modern history, but its all cool...he got everything straightened out for us. /s
But hey, there are a few of us trying to throw the rotten, slimy, commie bums out of office in about 126 days or so in order to try to restore a modicum of freedom to the common American. The brave part, well, the republicans are still working on that one....they’ve got a long way to go, but a couple of us on here still have some balls.


19 posted on 07/04/2012 7:53:52 AM PDT by lgjhn23
[ Post Reply | Private Reply | To 11 | View Replies]

To: kabar

The US imports a much larger percentage of third worlders than in 1970 and immediately go on the dole. How is that affecting America in a positive way?


20 posted on 07/04/2012 7:55:19 AM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
[ Post Reply | Private Reply | To 15 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson