[W]ith new tax pressures facing American expatriates due to legislation enacted in Washington this year, some international tax lawyers say they detect rising demand from citizens to renounce ties with the United States — the only developed country that taxes its citizens while they are overseas. Americans abroad are also taxed in foreign countries where they reside.If an ex-pat renounces her/his passport for tax reasons, s/he is prohibited by law from ever entering the US again (although that law isn't typically enforced). If s/he renounces because s/he thinks the president is a stinking jackass, however, s/he's still allowed to visit. As it happens, none too few renunciants are citing "political reasons and their displeasure with the Bush administration" these days, too. Gee, I can't imagine why.
…Concern about taxes among expatriates has surged since President George W. Bush signed into law a bill that sharply increases tax rates for Americans abroad with income of more than $82,400 a year. The legislation also increases taxes on employer-provided benefits like housing allowances.
…The legal ritual of renunciation is largely unique to the United States because other countries base taxation on residency, not citizenship.
I love how President Taxcutz is actually raising taxes on Americans living abroad. I'm sure that decision has nothing whatsoever to do with the fact that most Americans living abroad are liberals whose votes can't be lost by increased taxation—and whose votes, if lost permanently via renunciation of citizenship, wouldn't matter a smidgeon to the GOP.
Thanks for the heads-up to my girlfriend Miller, who is "so outta here, dude."
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