Tags: Homeland Security | Immigration | US | citizenship | passport | taxes

Fortune: Record Numbers Give Up Citizenship to Avoid Tax Hit

Fortune: Record Numbers Give Up Citizenship to Avoid Tax Hit
(AP Photo/Frank Gunn)

By    |   Monday, 06 March 2017 11:01 PM

A record 5,409 Americans renounced their citizenships last year, including 2,364 in the final quarter – primarily because of the nation's tax system, Fortune magazine reported.

The spike is more than 26 percent increase from the 4,279 who handed in their passports in 2015, federal records show, Fortune reported.

According to Fortune, the source of the uptick is a law that requires overseas banks to tell the IRS about their American customers.

"To some degree it is President [Barack] Obama's fault," tax lawyer Andrew Mitchel told Fortune. "It was Obama and the Republican Congress that passed a law in 2010 that forced foreign banks to disclose U.S. citizens."

When the law was passed, it was likely aimed at wealthy Americans who wanted to hide their money in secret Swiss bank accounts, Fortune reported. But the law now affects nearly any of the 7 million Americans who Mitchel says live abroad—many of whom are people of modest means.

"These people are terrified they will go bankrupt because of the United States," Mitchel told the magazine. "They just want to get out of the U.S. tax system."

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
US
A record 5,409 Americans renounced their citizenships last year, including 2,364 in the final quarter – primarily because of the nation's tax system, Fortune magazine reported.
US, citizenship, passport, taxes
185
2017-01-06
Monday, 06 March 2017 11:01 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved