Tag Archives: Ex pats

Yet another reason to renounce U.S. citizenship: Medicare tax on unearned income

Obama's 3.8% tax on unearned income - it's true!

The situation is indeed dismal. I don’t understand everything in the following article,  but I can see that this is going to:

1. Add more bureaucracy and cost to filing your U.S. tax return – it is not clear how this is intended to impact expats (if they are considered at all);

2. Clearly interfere with your ability to invest and plan for retirement. The U.S. has become a nation of forms and bureaucracy.

The U.S. government is aliready taxing unearned and undistributed gains when it comes to PFICs (and perhaps more). Stop for a moment and think what this means. The idea behind income taxation is that a certain percentage of what you receive as INCOME is to go to the government as your contribution toward running the government. In its most simple terms, this means that (imagine a tax rate of 20%) that if you receive $100 then $20 goes to the government. The taxpayer does not receive all of that he was paid. When it comes to taxing “unearned income”, one needs to ask the following question: Continue reading

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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.

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. Continue reading

Open letter to Mitt Romney

Dear Presidential Candidate Romney:

I am writing this open letter to you because I believe that you will be the next President of the United States of America. I respect you for your commitment to public service. I respect your patriotism. I am aligned with you when you say that “you will never apologize for America”.

I want to alert you to an issue that may force you (for all practical purposes) to have to “apologize for America”. Of course, you can change this. Although I am certain that your commitment to public service will continue irrespective of whether you become our next president, I do believe that you are America’s best option to guide the country for the next eight years. I support you. You have repeatedly said that you would “never apologize for America”. Continue reading

McKenna Globe Article – Comments on the comments

Yesterday I posted about Barrie McKenna’s article about American citizens in Canada renouncing  U. S. citizenship. Renouncing U.S. citizenship is a painful decision for many expats. Furthermore, there some expats renouncing U.S. citizenship will be hit with the exit tax. You must learn about the tax consequences of renouncing U.S. citizenship before you do it. As good as the Globe article was the number of comments was astounding. Incredibly 730 comments were posted in 24 hours. The comments were incredibly illuminating – recommend them to you. There is clear anger at the U.S. government. One of the most interesting comments came from the U Continue reading

Globe and Mail – Americans in Canada driven to divorce

Link to Article:

Americans in Canada driven to divorce from their country

This is a desperate time to be a U.S. expat. An “ignorant and arrogant” U.S. Congress (to use the language of American Citizens Abroad) along with Carl Levin, Barack Obama, Timothy Geithner and Douglass Shulman are destroying the lives of American citizens who happen to live outside the United States. It is difficult to describe the state of sheer terror that U.S. expats are living under. The bottom line is that the U.S. is threatening monetary penalties which, if implemented, will force U.S. expats to liquidate their assets (homes, RRSPs, etc.) and pay the IRS. U.S. citizenship is such a liability that there will be a number of marriages (which are already on shaky ground) that will end because the non U.S. spouse will not want to be reported to the IRS. Would you want to be married to somebody if it meant that all of your financial information would go to the IRS? To understand the exact reasons and the how this came about, I encourage you to read other parts of this blog. But, the “bottom line” is what it is. Continue reading

The psychic, financial and life costs of complying with the Internal Revenue Code

Click here to read comments about this video.

This video suggests that the compliance cost of filing taxes is $1000 per person per year. As an expat, you need to file all of the other forms. Your financial cost will be much more. But, don’t fort the stress and anxiety. What about the problem of even finding a tax professional who can do this?

In the beginning, the U.S.A. was a nation of laws. Now it is a nation of forms!

The question is simple: do you want to spend your time paying people to help you fill out forms or do you want a life?

U.S. Citizenship – It’s time for it to go!

The state of your U.S. citizenship

From The War of 1812 To The War of 2012 – America Tries Again!

In 1812, because of grievances against Great Britain, the United States attacked the British Colonies north of the 49th parallel.  These colonies  were to become Canada. The reasons for the attack included: Continue reading