‘Tis the season of politics!

Promises and allegations are flying fast and thick. We have various people who do fact checking on the claims made by politicians, but no one has seen the future. Republican presidential nominee Mitt Romney says that he will stick to his principles of no additional taxes on the people.

I am not saying that he is dishonest or disingenuous. Maybe he really does not want to add any new taxes on U.S. citizens and residents. I, however, am a skeptic on how he is going to be able to pull this off.

Just this week, we finally heard the rumblings from Moody’s Investors Service warning of the United States losing its AAA credit rating status if a credible solution to the U.S. debt problem is not found. If you remember, back on Aug. 5, 2011, Standard & Poor’s downgraded its rating of the United States from its AAA status. The rest of the world had already downgraded the United States a long time ago, but we kept ignoring the facts.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Last time we were downgraded, the U.S. dollar plunged further into the abyss. And we may see it happen again this time too when Moody’s downgrades America. If all my previous writings about the decline of the dollar were not enough fuel to make you move, this ought to do it.

Let’s talk a little bit about taxes in other parts of the world. The fear of increased taxes on various parts of our income and wealth has made many U.S. citizens leave America already. The highest profile case is that of Eduardo Saverin, one of the founders of Facebook who shifted to Singapore before the firm’s initial public offering to avoid the U.S. capital gains tax.

We have just heard of Bernard Arnault of France, owner of luxury conglomerate Louis Vuitton Moet Hennessy, applying to migrate to Belgium due to the unprecedented tax hike that French President Francois Hollande is proposing. Hollande wants to tax French citizens a whopping 75 percent of income above 1.2 million euros.

Yes, folks. That’s not a typo – 75 percent!

In such an environment, forgive me for being a disbeliever in the claim that the Republicans will not raise taxes.

Frankly, I am nervous about the next steps of restrictions on capital movements in and out of the United States. Already we are subjected to increasing reporting requirements via the Foreign Account Tax Compliance Act (FATCA) and other regulations on an annual basis.

I am not advocating that we renounce our citizenship and move offshore. While that would be an extreme move and worthy for some, I believe in paying a fair share of my taxes. It is not unpatriotic to want to protect your wealth and save it from the extreme tax regime that will get imposed on us.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Investing overseas is one definite and lucrative way of saving you the anguish of high taxes. While we are still taxed on global income, it eases some of the burden, as you are earning higher income and gaining wealth overseas. In the United States, it is a gamble any given year if your assets are going to rise or not. If you subtract the decline of the dollar, it will definitely leave you with very little real growth in your investment portfolio in dollar terms.

The uber-rich investors moving away from high tax regimes are a clear signal to us to be cautious and spread the wealth to diversify regulation risk and earn a higher income in non-U.S. dollar terms.