Obama will not allow his surfs to attempt to flee the land. They must be made to serve their socialist masters.
It is already law.
Code section 877A (enacted by section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008)
Federal / International Tax
US Exit Tax Guidance
November 17, 2009
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Originally published in Canadian Tax Highlights, Volume 17, Number 11, November 2009. Reprinted with permission.
Notice 2009-85 (2009-45 IRB 598), October 15, 2009, contains long-awaited guidance on the new exit tax rules in Code section 877A (enacted by section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008 to replace Code section 877’s 10-year alternative tax regime on certain US-source income of covered expatriates). The exit tax may apply to a US citizen who relinquishes citizenship and to a long-term US resident (who has held a green card for at least 8 of 15 years) who ceases to be a lawful permanent resident. A “covered expatriate” generally includes an individual who meets an income tax liability test or a net worth test and may include an individual who has not filed US tax returns. The notice may be of particular interest to a US citizen living in Canada who may be considering the renunciation of his or her US citizenship.
Code section 877A(a) imposes a mark-to-market regime on a covered expatriate: generally, all of his or her property is deemed to have been sold at FMV on the day before expatriation. Regardless of other Code rules, the deemed gain is included in that taxable year’s gross income and reduced—but not below zero—by $600,000, adjusted for inflation ($626,000 in 2009); but any loss from the deemed sale is taken into account only if allowed by another Code section. Payment of the resulting tax may be deferred until the due date of the return for the taxable year of actual disposal.
Where is that road?