Rich Americans who renounce US citizenship to escape taxes?--Still owe taxes!

[old mark]

US government regulations on renouncing US citizenship: It must be done in person in a US embassy, not by a lawyer or other representative, and the person renouncing citizenship is still responsible for taxes, criminal prosecution of any crimes committed before leaving the US, and any military obligations. The renunciation is irrevocable, except by legal appeal process. Link here - check especially section E : http://travel.state.gov/law/citizenship/citizenship_776.html

Link to recent story on American rich who seek "escape" from the terrible Obama tax persecution (and previous "escapers", including some names:
http://www.dailyfinance.com/story/taxes/more-rich-americans-renounce-u-s-citizenship-for-lower-taxes/19560160/

Members of the family that owns Campbell's Soup have renounced citizenship in the nation that made them idle rich, as did members of the Getty family the founder of the Templeton investment group.

Recent escapees fear the IRS will investigate and audit rich more thoroughly under the Obama administration, and that taxes on inheritances and higher incomes will increase and that the IRS will stop loopholes in overseas investment and funds...One man living in Ireland was responsible for "several thousand dollars" in fines from the IRS.
BUT: US citizens renouncing citizenship WILL BE TAXED by the US for several years after they "escape" to make sure they are not hiding assets that should have been taxed when they were citizens

One person considering renunciation stated,"Things are only going to get worse for us."

All I can say is, goodbye...we are better off without all of you.

mark

[HillbillyBob]

1. Make their fortunes here or inherit them or starts of a fortune

then screw the citizens out of taxes, move the factories overseas and still get tax breaks. Then run off like pirates or cowards. I think that there should be an emigration (leaving) tax of say 20% on amts up to 1mil, 30% on up to 3 mil, 40% up to 10 mil, 60% on amounts more than that. After all they 'made' their money here it or at least a goodly portion of it should stay here.

[marmar]

2. .........

[hobbit709]

3. They should be denied an entry visa for the rest of their lives

If the US isn't good enough for them, they shouldn't even be allowed to visit for any reason once they leave.

[shireen]

4. they're worried about US taxes?

We have one of the lowest tax rates in the world. If those idiots move to Europe, they'll be paying even more in taxes.

[formercia]

5. Exactly

One CEO I know told me he moved his operation to Austria for the favorable business climate, but pays a 50% corporate tax rate.

[old mark]

6. I am sure taxes are just the excuse...they may have a lot of illegal deals

to evade taxes they are worried the "evil Democrats" will find now that Obama is making the IRS more aggressive in investigating tax shelters and foreign investments...I have NO DOUBT there is a lot there to be found.

And, you are right - we have one of the lowest tax rates of any developed nation.

These people made huge fortunes here, using American labor and profiting by selling products to Americans, and I am certain they supported the GOP against every union or government attempt to improve working conditions for their employees.

They are certainly no loss to our country.

mark

[rpd123]

7. The only place they'd want to live would have higher taxes

Ive lived in Mexico City for almost a decade and on many occasions Ive had the opportunity to interact with some of the wealthier people here (very unpleasant obnoxious people by the way). Mexico has some mind blowingly wealthy people. Over the past decade Ive watched the republicans and the democrats try to destroy public education in the US; eliminate reasonable minimum wage requirements and try to reduce public services to military and police activities.While I've been watching this , I think to myself"my God they're trying to turn the US into Mexico". Mexico is a good example of what happens to a society that does not balance private wealth accumulation and social responsibility. The public schools are scoffed at ( even though UNAM is an excellent university a world class university. major companies have ´policies not hire their graduates-just because of the stigma attached to public education) Middle class Parents pay enormous percentages of their income to send their children to private elementary and high schools and then universities so that their children have a fighting chance later on.
Here's the funny thing. The Super rich Mexicans live behind huge walls. They have to pay for 24 hour armed guards at the entrance of those walled estates. when they go out in public, they usually have an armored car with 2 or 3 armed bodyguards in front of them and the same behind them. They are not free to roam around in public and even after all of these precautions they still get kidnapped. Many times its an inside job. Of course it is. they have an army of servants waiting on them and an army of guards "protecting" them and it is only possible to have all of that because they are able to pay them a pittance of a salary (last time I checked which was probably around 5 years ago-minimum wage in Mexico was about 5 dollars A DAY)

Here's the point any rich person who thinks that life will be better in a low tax-low government environment better be prepared to live behind a high and thick wall and should you be dumb enough to want to venture outside of it, you'll need to take an army of ill-trained body guards who in the end will probably be the ones to kidnap you since "the market" has decided that they only get 20 dollars a day (yeah I giving them credit that they wouldnt pay the minimum) You'e used to a society that has, to some extent, tried to give everyone a even playing field (through higher taxes)but a large percentage of the world is not like that at all- and those can be some very ugly places, especially if you're rich.

[old mark]

8. From my limited understanding, many small countries are among the

places the rich think they want to live...I am sure anywhere in Europe, and anywhere in the world that officially speaks English would be much too "socialist" and highly taxed for them. Many of the countries they might find acceptable have conditions such as you describe-the realy realy rich live in enclaves or compounds with some paramilitary guards who may or may not be any good.

Silly when you think about-but you really don't have to be smart to be rich, and the rich prove it every day.


mark