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'Scary': Why US expats are tossing their citizenships - and it's not just Trump
Renouncing ones US citizenship is a complicated, expensive process. Yet in recent times particularly election years a rising number have embraced the ex in expatriate.
Its a handful of days until the US election. Expat Americans thirst for news on the presidential race. But theres one group who wants nothing to do with next Tuesdays vote; those who plan to, are in the process of, or have already renounced their US citizenship. And there are more of them than you might think, particularly in an election year like this one involving Donald J. Trump.
For Americans who want to stop being American, its a big deal to renounce their citizenship. Philosophically and nationalistically, but also practically. Why do they do it? I speak to a dozen, some on the record, most on background, some on the record at first and then freaking out. Its not so much about Trump or even his presidential rival Kamala Harris (although for some, it is). Its about what America has become.
In the US, the gap between Republicans and Democrats gets wider and wider. I resented the direction it was moving in, says Dan Moffet, 51, a credit ratings executive born and bred in Atlanta, Georgia, who has called Australia home since 2016 and renounced his US citizenship in 2022. Here [in Australia], everyone crowds towards the centre.
For others, its shhhh about tax because, as the University of Melbourne law professor Miranda Stewart explains, the US taxes on a citizenship basis, meaning Americans living abroad can be taxed by the IRS (Internal Revenue Service, the US version of the Australian Taxation Office), whereas Australia, like pretty much the rest of the world, taxes on a residence basis. That means American citizens working in Australia might end up paying tax in both countries. Sure, the US and Australia have a treaty where you get some credit for what you pay if you live here. But its complicated, and in the US, almost everything is taxable, including the family home and superannuation (also known as a 401K or pension plan in the US). And the US still has a federal death tax, albeit for estates currently worth a minimum of $US13.61 million (about $20 million). If you dont sort out whats owed and fill in the myriad forms properly, the IRS will treat you as a hostile citizen.
More......
https://www.theage.com.au/world/north-america/scary-why-us-expats-are-tossing-their-citizenship-and-it-s-not-just-trump-20240917-p5kb3y.html
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'Scary': Why US expats are tossing their citizenships - and it's not just Trump (Original Post)
canetoad
Friday
OP
sounds like it's mostly for financial reasons, plus to be done with the taint of trump
LymphocyteLover
Saturday
#2
to some extent I'm sure, but also a country where sadly they can use their wealth to influence politics more easily
LymphocyteLover
9 hrs ago
#4
IzzaNuDay
(535 posts)1. If I were single, I would be long gone from the USA
But since I am not single, always wonder what would be the one event that would have me on an one way ticket out of the USA
LymphocyteLover
(6,560 posts)2. sounds like it's mostly for financial reasons, plus to be done with the taint of trump
Jit423
(48 posts)3. Hmmm. Then there is this
Elon Musk Peter Thiel Eduardo Saverin David Sacks Max Levchin Luke Nosek
Born: S. Africa Germany Brazil So Africa Ukraine Poland
I guess if you have real wealth, the US is the best place to live?
LymphocyteLover
(6,560 posts)4. to some extent I'm sure, but also a country where sadly they can use their wealth to influence politics more easily
and try to get lower taxes