More American Expatriates Give Up Citizenship - NYTimes.com I wouldn't do it, because I might at some point want to return to live in the U.S. But, as you can see from the article, more people are renouncing their U.S. citizenship- most for very practical reasons relating to inconveniences that you have to work around while living abroad, if you're a U.S. citizen (some of which are mentioned in the article). There is also the taxes owed the U.S. Government if you're self employed [(15.3% of your total income from self-employment notwithstanding the foreign earned income exclusion (which applies only to U.S. income taxes)]. Then, there are the reporting requirements imposed on U.S. Citizens- that come with significant penalties for failure to comply- such as reporting the existence of foreign bank accounts, foreign trusts, etc., etc., that can cause some people to begin to think, after living abroad for many years, that the benefit is not worth the cost. __________________ I don't think political renunciations are too popular, now, but there are many things about U.S. policy that could make one consider it, such as the whole concept of "projecting power" around the world, which entails the expense of maintaining almost 800 permanent military bases. U.S. military spending, in total, is almost equal to the combined military budgets of all the other countries on the planet. It's not likely we'll ever completely leave Iraq, unless we have to, having a policy of, "once we go in, we never come out", the only exception I can quickly think of being Vietnam, where we were pushed out. We're still in Germany, after 65 years.... It is possible to make a case for the proposition that the policy of establishing permanent military bases around the world directly led to 911, where our building of the Prince Sultan Airbase, in Saudi Arabia, was intolerable to some of those who view that part of the world as most sacred of all. http://www.globalsecurity.org/military/facility/prince-sultan.htm
I for one, would rather die than renounce my country. My Forefathers bled and died for this country and I am PROUD to call it home! God Bless The USA!!!
V: I can see why many Americans would chose to do so, and have met MANY who have done so(mostly Americans living in Sweden, Australia, New Zealand, Mexico and some who now live in Argentina and Costa Rica) A former neighbor just moved back to the states. He had to pay a BIG sum of tax when returning, even though he hadn't been in the country in more than 5 years... I thought he was joking, but no, it was true. By Swedish law, you do not have to pay ANY tax if you re not using the "things" that tax money is used for: Roads, hospitals, fire dept, police, schools etc. I do not understand this whole surveillance/control-thing your country has... Have been asked if I would mind renouncing my Swedish citizenship at any point. I would not have a problem to do so for a couple of reasons: 1: In case there would be a benefit to do so, I wouldn't hesitate. For example: I can have two citizenship's at a time, and if Sweden is in the way of any important stuff, then it has to go. (This might come in handy in a few years depending on certain plans..) 2: It takes roughly 2 weeks to get it back if needed/wanted.
OMG that was pretty funny.... at the bottom of your statement... "If you're lucky enough to be Irish....You're lucky enough.."
I know a number of Americans who moved to Cancun 20+ years ago and stopped filing taxes in the US. Now they are facing retirement and are very much wishing they could get Social Security checks, but by not filing taxes they dropped out of the SS system. Now they are very frustrated with themselves. Even a modest SS check goes a long way in Mexico. The point being, yes we have to pay that self employment tax, but, in theory, we will get something for doing so, we get to stay in the system and keep the right to collect Social Security when we retire. If I'm not mistaken renouncing your US Citizenship does not get you out of any tax debt you have incurred with the US govt. So I think that means that lots of ppl who just want to get out of the system will not formally renounce their citizenship. Personally I don't think having to file a tax return each year is much of a burden. My taxes took all of 3 hours to get ready this year...well, 3 hours to get my stuff ready to send to the wonder accountant.
"Off topic" but perhaps of use to some of those RG's referring to, here's what the Social Security Administration says about eligibility to receive payments- Ten years of work in jobs from which payroll taxes were taken, and those years' earnings credited to your account, is all it takes for these benefits to "vest". When you apply, they will ask you to explain any years in which you did not contribute. If you are employed, abroad, you are not normally required to contribute anything in U.S. payroll taxes: this work will not count towards U.S. retirement benefits- unless there is a tax treaty between the U.S. and the country you're working in which provides for this- but it doesn't obligate you to pay taxes in the U.S., either, unless your income exceeds the the foreign earned income exclusion applicable to any tax year in question; then, you will owe income taxes. People who were self employed abroad are in another category, and would have been obligated to pay "self employment taxes" in the U.S. each year they had self employment income, as well as any income taxes due for that year if they had income above the excludable amounts. I'm not a "tax repair" specialist, but I have had friends who, panicking about this, had filed returns covering numerous years in which they had not filed: they never had any kickback out of IRS, who I guess were grateful for the compliance, if belated. (The people I'm referring to had been employed abroad, not self-employed, and had income of less than the excludable amounts, therefore owed no taxes, as far as I could see. I think those who owe, didn't file, and didn't pay, will need the assistance of an expert to repair their situation, if they choose to.) Furthermore, the people I'm speaking of being friends had not had, at any point in time, a foreign bank account balance exceeding the equivalent of $10,000 USD, so were not threatened with possible action for having failed to file annual reports of foreign bank accounts, during their time of living abroad.
I am a proud American, and would never give up my citizenship, but I have friends who are out of control with their views of the US and if you say one negative thing about their mother land, you are damned. I wish people would see the the US isn´t #1 anymore..and there are lots of faults that don´t make me a bleeding patiot anymore.
IF an American citizen renounces his/hers citizenship, can you get it back later? I still neither understand nor support that Americans, living abroad, paying taxes in whatever country they live in, STILL have to pay taxes to the US. If you are not there to use the services, then why should you pay? My pension back home in Sweden is simply "put on hold" until/if I ever decide to return... Many thing surprise me regarding USA - its very interesting to learn new things and the more I speak to and hang around Americans, the more I notice a significant difference between the reality and the "advertisement" that we get about U.S back home ("The American dream" etc.) I assume this goes for any and every nation? - They sell you "paradise" but you get "normality". For us Swedes its such a simple and painless procedure to renounce and get it back, that we aren't really worried about it all. Im happy the way our system is - its simple Now, if its NOT possible, as an American, to get your citizenship back, then I can fully understand that some people hesitate.
It's a big deal to renounce your U.S. citizenship, you have to go before a Consul to do it, I doubt it's easy to get back. There are some people walking this earth who have lost their citizenship for whatever reason (they are often refugees) and have no citizenship in any country at all, they are Stateless. This makes it complicated for them to travel, they need to get a special passport for people with no state. It's rare but it happens. Also most countries will always take their own citizens back in, regardless of the docs they hold or their status or legal situation. Both the U.S. and Mexico will always allow their own citizens to enter, even if they don't have a passport or ID. But Cuba routinely refuses entry to its own citizens, which I find amazing. You'd think Cuba would want more friends in the world, but they seem content to say no to their own citizens. There are cases of people who've left Cuba and moved elsewhere, then have gotten booted from the country they live in only to have Cuba refuse them entry. Talk about being screwed, when no country will take you where do you go? Oh, I know, you go illegally to Mexico...
