US Expat Tax – Ex-Patriot Act To Permanently Banish Some Who Renounce US Citizenship

World News

Had enough of filing and paying US income taxes? Have you thought about
moving beyond all the hassle and yearly effort just to remain compliant with US
taxes and regulations by giving up your US citizenship? The idea, though
perhaps well founded, now requires even more
careful consideration than ever before. The new and pending
Ex-PATRIOT Act will permanently banish some individuals who renounce their US
citizenship from ever setting foot on US soil again.

New legislation that is being sponsored by US
Senators Chuck
Schumer and Bob Casey known as the Ex-PATRIOT Act is moving
steadily closer to becoming US law.

 

It is malevolent, it is brusque and rude and is the sort of
knee-jerk reaction that is borne out of desperation and has come to be expected
from the US and its ever-increasing struggle to maintain control over other
peoples’ lives and, more importantly, the towering house of cards that is the
United States debt .  It’s almost Kafkaesque in its
seeming nightmarish assertion that if one chooses to renounce one’s
citizenship, then a whole host of penalties must follow – including permanent
banishment from the United States, itself.

 

The
essentials of the legislation are as follows –

 

·        –  If one is deemed to have renounced one’s
citizenship in order to avoid US taxes, they will be permanently banished from
re-entering the United States. This is an administrative and arbitrary decision
and provides no recourse for the individual.

·        –  Henceforth, if this same individual realizes capital
gains from investments in the US economy, that individual is to be taxed at a
rate of 30%. As is, no non-US citizen who does not live in the States pays any
capital gains at all.

·        –  This legislation is retroactive – and when it’s
passed it will apply to all former US citizens who had renounced their citizenship
within the last ten years.

 

In a Sunday interview with ABC News, House Speaker, John Boehner,
chimed in with his support of the bill – a big step towards its eventual
passage.

 

Every American, whether living Stateside or abroad, takes every
reasonable advantage to relieve their tax burden.  It’s not considered un-American, in fact it
is proscribed by the IRS, itself, explained on the IRS website in its
commentary on the difference between tax avoidance and tax evasion –

 

The term “tax avoidance” describes lawful conduct, the purpose
of which is to avoid the creation of a tax liability in the first place. Whereas an evaded
tax remains a tax legally owed, an avoided tax is a tax liability that has
never existed.

 

The Schumer furor is all about his taking umbrage over Eduardo
Saverin, a founder and early investor in Facebook, who renounced his US
citizenship and now resides in Singapore, before his windfall gain of some
billions with Facebook’s IPO. Saverin was not even born in the States. He is
from a wealthy family in Brazil and, during his tenure at Harvard, befriended
and helped financially back Mark Zuckerberg and his Facebook project.

 

This is a young man whom the United States should be celebrating
for his own good fortune and his contribution to our economy – Instead he’s
been castigated and threatened with banishment, penalties and vilified. This is
not the spirit of enterprise that the United States normally embraces and was
founded upon.  Rather, it comes off as
seething envy that motivates Schumer and Casey and their legislation is a slap
in the face of entrepreneurialism.  Schumer’s
posture isArticle Submission, ‘how dare Eduardo Saverin succeed beyond his wildest dreams! How
dare he continue his entrepreneurial pursuits in a place like Singapore!’  For Schumer and Casey it is shameful.  It’s the sort of behavior that should be
punished and made an example of for others who might ‘dare’ to aspire to great
things.

 

Better idea – perhaps Chuck Schumer and Bob Casey should be banished.