Why people are renouncing U.S. citizenship: Readers Digest Version

RT @FATCA_Fallout Renouncing US Citizenship — Trend, Overreaction or self-defense? onforb.es/Z0RIub bit.ly/TPAUOV #FATCA—
U.S. Citizen Abroad (@USCitizenAbroad) December 13, 2012

Nobledreamer’s comment to this article about renouncing U.S. citizenship is worth a post and that is exactly what this post is. One of  best descriptions of the problem I have seen. It’s in language and a format that anybody can understand it. Thanks!

The second American revolution – Who are the Patriots?

Those of you have been to the Boston area will know that is is a museum to the American Revolution. In Lexington, Massachusetts there is a Museum called Munroe Tavern. After the tour, one can listen to a video documenting the start of the American Revolution. The video begins with the question:

“Who were the Patriots?”

Were the Patriots the oppressed colonists or were they those who were loyal to British Crown? There is a saying that:

“One man’s freedom fighter is another man’s terrorist.”

I am sure that both  sides (of what essentially was the first American Civil War) felt that they were Patriots. I am not sure what it means to be a Patriot. That said, I don’t believe that blind obedience to the laws of a nation makes one a Patriot. Blind obedience would make one a “law abiding citizen”. It would not make one a Patriot. Although Patriotism may include obedience to the laws of a country, obedience would not make one a patriot. Ron Paul in his campaign for President once said that the Patriot Act was not patriotic.

Letter of a Canadian businessman to his dual U.S./Canada citizen son on the occasion of his high school graduation

“Good citizenship” and “Your citizenship”

The Isaac Brock Society recently featured a discussion  about how and when to advise young people about the potential problems of U.S. citizenship and whether they should consider renouncing U.S. citizenship. As parents, teachers, mentors and friends we should pass on to our young people the benefits of our (in varying degrees) knowledge, wisdom and experience. We do this because we want to equip them with the skills they need to make the best life decisions that they can.

The books:  “Letters of  A Businessman to His Son” and “Letters of A Businessman to His Daughter“, by G. Kingsley Ward, are wonderful examples of  this principle.  They are chock full of practical advice and thoughts on -  the only business that really matters – “The Business of Life”.

I have been inspired by Mr. Ward. Here is the letter (with many factual modifications to protect the young person in question) that I wrote  on  the occasion of  that young person’s  High School graduation.

U.S. citizens “Born Free” renounce U.S. citizenship to live “Form Free”

Some things never seem to change – specifically the need to “Live Free”

Just came across an interesting blog post called “My thoughts on U.S. citizenship for young people“, the author encourages young people to renounce their U.S. citizenship as early as possible. Certainly “young adults” over the age of majority should be educated about the obligations, liabilities and  opportunities of U.S. citizenship. Any decision to renounce citizenship is important and needs to be made in an educated and calm state of mind.

I would guess that the author’s sentiments are largely the result of his life having been taken from him by the IRS assault on dual citizens. This can be understood only by those who have lived this nightmare.  Incredibly the “IRS jihad” has been against some of America’s most patriotic citizens. Their scars will be permanent. It’s not what you take from them. It’s what you leave them with.

The author then explains, why for “young people”, renouncing U.S. citizenship, is an important investment in their future.  Here is an excerpt:

Another expatriation driven by U.S. tax complexity and the time it takes – Expatriation is on the rise!

A second lawyer notes that expatriation is on the rise. #FBAR #FATCA hodgen.com/another-expatr…—
Renounce U.S. Citz (@renounceus) April 12, 2012

Another U.S. person living outside the U.S. expatriates. Choose between having a life and being a U.S. person! hodgen.com/another-expatr… #FATCA—
Renounce U.S. Citz (@renounceus) April 12, 2012

US citizen renounces, rejoices, receives CLN (Certificate of loss of nationality) Could it be because of #FBAR #FATCA isaacbrocksociety.com/2012/04/10/my-…—
Renounce U.S. Citz (@renounceus) April 12, 2012

An interesting  post appeared today on Phil Hodgen’s blog. It appears that expatriation is on the rise. (Who could have known?) Note that the reasons have nothing to do with the payment of tax. They have everything to do with the the inability to live a normal productive life as a U.S. person living outside the United States.

What follows is an excerpt from his post:

The agony of U.S. citizenship for U.S. citizens living outside the U.S.

U.S. citizens cry out in agony! But, the U.S. government “Silence is Deafening“

The cries are getting louder and louder! Inside the U.S. only Taxpayer Advocate seems to be listening. Outside the United States, American Citizens Abroad continues to soldier on. In Canada, the home of (probably) the largest number of U.S. citizens (many of who are also Canadian citizens) the Government of Canada is listening. Finance Minister, Jim Flaherty, has been consistent in his position that FATCA is intrusive and unnecessary and the Canada will not collect FBAR penalties. He has been consistent with the sentiments expressed in his public letter of September 16, 2011. U.S. citizens in Canada are in a far better position than U.S. citizens in other countries. Furthermore, Mr. Flaherty has been responsive to citizen’s concerns, recognizing that Canadians are desperate for help. The evidence is building.  The IRS Jihad against U.S. citizens abroad is intentional murder.  Many U.S. citizens are  renouncing U.S. citizenship to protect themselves from the U.S. government. Take the above poll which is from a previous post describing how renunciations of U.S. citizenship are soaring under Obama. Consider the following wisdom from a U.S. citizen living in France.

Citizenship renunciations soar under Obama – Renouncing As An Act Of Self Defense

To Be, Or Not To Be: That Is The Question: – Whether tis nobler in the mind to suffer The slings and arrows of outrageous fortune …

Expatriating Acts – The Status Of Your U.S. Citizenship

Updated on January 16, 2013

As the Government of Canada gets closer and closer to signing an IGA with the U.S. the issue of who is a “U.S. person” is becoming more and more important. Panic is starting to set in. Those of you who became citizens of another country prior to 1986 may not be U.S. citizens. Whatever you do: do NOT ask an accountant or tax preparer (they don’t have the expertise) or even a tax lawyer (they have a financial interest in your citizenship). The proper person to ask is a U.S immigration and citizenship lawyer.

Those who think of themselves as #americansabroad may not be US citizens. Before thinking #FATCA, think citizenship renounceuscitizenship.wordpress.com/2011/11/13/exp…—
U.S. Citizen Abroad (@USCitizenAbroad) January 16, 2013

More on US citizens who became Cdn and are long term citizens of Canada isaacbrocksociety.ca/2012/09/07/moo… – Do not presume you must file US taxes—
U.S. Citizen Abroad (@USCitizenAbroad) January 16, 2013

Enjoy this old post.

Listen to the stories of these two people born in the United States. One of these is Professor Maurice Williams who wrote an interesting letter to Obama. Read the following blog post. These two people may or may not be U.S. citizens.

Renouncing U.S. Citizenship – A Growing Trend

Many people are coming to the conclusion that U.S. citizenship is at best undesirable and at worst dangerous. In the past – people came to America in pursuit of liberty and justice.  There are some who still do. What is new is the large number of people who are interested in “ceasing to be a U.S. citizen”. More and more people are renouncing U.S. citizenship.

But Wait – Maybe You Are Not A U.S. Citizen After All

I started this blog because I believe that there are U.S. expats who believe that they are U.S. citizens when in fact they are not. Even if you were born in the United States, you may not be a U.S. citizen. It is possible that there are people who entered the OVDI program who are no longer U.S. citizens. This is first of a series of posts where I will discuss reasons why you may no longer be a U.S. citizen.   There are many U.S. expats who would be very happy to be in your shoes.

Exit tax triggered by renouncing U.S. Citizenship

You need to find one!

More and more U.S. expats are voting with their feet and opting to renounce U.S. citizenship. Renouncing your U.S. citizenship may or may not make sense for you. If you are considering renouncing your U.S. citizenship, the question that most people ask before taking any step is:

“What are the tax consequences of renouncing U.S. citizenship?”

The following is an excerpt from a comment on the Americans Driven To Divorce article on the Globe and Mail site:

“And for the correction: the definition of “wealthy” is based upon total assets and having paid and average of $150,000 of tax over the past 5 years ( not annual income ). Since most do not trigger that threshhold, the entire process is really not that burdensome at all.”

Do you see any mistake(s) in this? I believe that there are (is).