US Hikes Fee to Renounce Citizenship by 422 Percent to $2,350

Sunday, 31 Aug 2014 08:10 PM

By F.J. McGuire

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
The United States plans to hike the fees it charges American citizens to give up their passports as the nation also tries to stem the tide of U.S. businesses moving headquarters overseas.

The State Department has boosted the fee for renunciation of U.S. citizenship by 422 percent to $2,350 from $450.

The State Department claims the new fee is the actual cost of processing an application to lose citizenship.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

“Demand for the service has increased dramatically, consuming far more consular officer time and resources,” Under Secretary of State Patrick Kennedy wrote, according to Global News.

“Documenting a U.S. citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases,” he wrote. “The department believes there is no public benefit or other reason for setting this fee below cost.”

The wait time for an expatriation interview has increased to as much as six months in some areas, while it is as short as two to four weeks in others, a State Department spokesman told The Wall Street Journal.  He added that three-quarters of all renunciations are processed by consular offices in Canada, the U.K. and Switzerland.

In recent years, the United States has seen a 221 percent surge in Americans renouncing their citizenship, according to Forbes. “It isn’t exactly Ellis Island in reverse, but it’s more than a dribble. With global tax reporting and FATCA, the list of the individuals who renounced is up,” Forbes reported.

Meanwhile, the Canada Free Press reported that both U.S. citizens and American business want to free the home of the brave because of the double-pronged whammy of “high taxes and burdensome tax compliance” in foreign jurisdictions.

“Instead of facing the problems directly, the Obama Administration has resorted to punitive measures. The shame and blame tactic of calling out businesses who wish to relocate as “unpatriotic” was undignified. Perhaps realizing that using the same strategy with individuals would be even less well received, they went the more quiet, direct route,” the CFP’s Alan Joel wrote.

The new amount is "more than 20 times the average level in other high-income countries," according to the Isaac Brock Society, which describes itself as a group of "individuals who are concerned about the treatment by the United States government of US persons who live in Canada and abroad."

The United States has been battling a rising tide of tax inversion, commonly defined as the relocation of a corporation's headquarters to a lower-tax nation, or corporate haven, usually while keeping key operations in its higher-tax country of origin.

International Business Times reported that Burger King Worldwide Inc.'s plans to buy 51 percent of the Canadian coffee-and-doughnut chain Tim Hortons Inc. for $11.4 billion may have been about saving on taxes by moving to Canada.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

NYT's Irwin: US Economy May be in Worse Shape Than Data Indicate

Sunday, 23 Nov 2014 19:14 PM

While recent statistics have shown strength in the U.S. economy, near-record-low interest rates and declining commodity  . . .

LA Times' Martelle: Trade Reform Needed to Boost Factory Wages

Sunday, 23 Nov 2014 18:57 PM

Manufacturing wages have fallen in recent years, and globalization of labor represents a major cause, says Los Angeles T . . .

Money Manager Gunderson: Falling Oil Prices Will Lift Economy

Sunday, 23 Nov 2014 17:21 PM

Oil prices hit a four-year low earlier this month, and San Diego money manager Bill Gunderson says that's good news for  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved