WEALTH CREATORS ARE FLEEING AMERICA INSTEAD BEING DRAWN TO HER
WEALTH CREATORS ARE FLEEING AMERICA INSTEAD BEING DRAWN TO HER... WHAT A SHAME FOR THE SHINING CITY ON THE HILL.
**** WHAT A SAD STATEMENT THIS IS*** NOT FOR THE COMMON REASON EVERYONE IS TOUTING FROM THE CLASS WARFARE POINT OF VIEW THOUGH!! CASE IN POINT: Facebook co-founder renounces US citizenship on the eve of IPO Yes now with the State of America there are BETTER places in the world that you can keep your money due to the TAX POLICIES OF THIS ONCE GREAT BOUNTIFUL NATION! Instead of being the LAND OF OPPORTUNITY and THE GOLDEN SHINING CITY ON THE HILL.... PEOPLE WITH MONEY... THE CREATORS OF WEALTH AND JOBS... ARE LEAVING and are being replaced by Takers coming across the borders illegaly to TAKE and not to CREATE !! Shades of Ayn Rand, The Rich Are Leaving the U.S. in Greater Numbers Normally averaging hundreds per year, last year the U.S. had almost 1,800 citizens renounce their citizenship and move overseas. The number of wealthy Americans dropping their citizenship has grown sevenfold in the four years since a whistleblower at UBS prompted a crackdown on tax evasion, according to a separate Bloomberg report. The latest, Facebook co-founder Eduardo Saverin, stands to potentially save hundreds of millions of dollars by giving up his citizenship, and according to an immigration attorney and expert on citizenship matters, saving on taxes – especially capital gains duties – is usually the reason people make the decision. John Dorrance III, the heir to the Campell’s Soup fortune, ditched his U.S. citizenship and moved to Ireland before selling his stake in the family business, according to Forbes.
SHAME ON AMERICA FOR LOSING ITS LUSTRE.... America is no longer as attractive to highly successful people as we like to think. People say the dollar isn't what it used to be. Apparently neither is a United States passport. Last year, nearly 1,800 American expatriates renounced their citizenship, according to Treasury Department figures. What gives? Here's the real issue: When it comes to attracting highly successful people, America is just not as competitive as we like to think we are. What we need is a complete rethink. That rethink begins with a hard look at what these 1,800 citizenship renunciations are telling us. True, 1,800 is a drop in the bucket compared with either the number of Americans working abroad or the number of foreigners who are seeking U.S. citizenship. Still, when it comes to the global inefficiencies of our tax code, these 1,800 ex-Americans are canaries in the coal mine. Our tax code--and especially the onerous reporting requirements that come with it--is turning U.S. citizens into economic lepers. Many foreign banks refuse us as customers; some investment ventures no longer want us as partners; and some business opportunities that would have benefited Americans now benefit others. For successful foreigners, our global tax regime tells them this: Avoid entanglements with America. Andrew Mitchel is a Connecticut-based international tax attorney who blogs on these issues. He says that for someone who has foreign assets abroad, the cost-benefit analysis doesn't always come out in America's favor. "My advice to, say, a small-business man abroad would be to think twice about acquiring U.S. citizenship," says Mr. Mitchel. "Many of these people do not realize what that means for their businesses until they start dealing with the IRS." All these disincentives flow from a single source: Uncle Sam's insistence on taxing people and companies for what they earn outside U.S. borders. Jackie Bugnion, a director with the Geneva-based American Citizens Abroad, says the U.S. approach makes no sense at either the individual or corporate level. At the individual level, says Ms. Bugnion, the IRS imposes a "highly complex, costly double filing." Even so, it produces little revenue because most Americans end up owing no taxes at all because of exemptions and what they pay where they live. Indeed, this is one area where free-marketeers think that America should be more like Europe, which does not tax its citizens overseas. At the corporate level, taxing overseas earnings means higher capital costs for the U.S. Instead of taxing businesses only for what they earn in America, Ms. Bugnion says, Congress makes things even more complicated by trying to offset the negatives with occasional measures such as deferred taxation on profits earned and reinvested overseas. In short, America is not facing up to the big question: If you are a dynamic individual with a good business, do you want to be an American--and open up all your world-wide activities to the IRS--or might you be happy living and raising your family in a part of the world that welcomes rather than discourages success? The aforementioned IRS report suggests other countries are busy answering that question, citing a World Bank study showing that, unlike ours, "40 economies made it easier to pay taxes last year." Now the whole notion that someone would give up U.S. citizenship to get out from the IRS will be taken by some folks as evidence that he or she isn't worthy of American citizenship. Maybe not. Alas, a focus on the punitive only blinds us to the larger costs this approach is inflicting on the rest of society. Indeed, the whole reason Treasury reports the numbers of Americans renouncing citizenship instead of the State Department is because Congress--Republicans as well as Democrats--set it up that way. The aim is to "name and shame." That's the Berlin Wall approach: The idea that the thrust of U.S. tax law should be to prevent any American from benefiting from a better deal somewhere else. That a record 1,800 Americans gave up their citizenship last year suggests something else: Instead of building walls to keep talent and investment from getting out, Congress might start treating these as capital we ought to work to attract.
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