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Re:Wealthy people are renouncing American citizenship by dantheman on Thursday August 05, 2021 @11:27AM (#28075070)
It is awful - I'm glad you never had to deal with. It provides little revenue and causes a huge amount of hassle and makes living overseas way more difficult.
Re:Wealthy people are renouncing American citizenship by ricksunny on Thursday August 05, 2021 @12:12PM (#28075752)
American expat here - agreed with the other expats - it’s the filing that really, really sucks. Like really. Breaking the difficulty down in terms of priority.

1 - just trying to work through what all might possibly be owed and not owed to US as well as the country(ies) one operates in.

2 - Identifying through which paperwork to declare it, while also ensuring income / business reporting is copacetic with the tax regime of the country that same is actually earned in. As a business owner, (many operating overseas are looking after a business) I have to complete corporate accounts (which costs $$$$ and takes forever) before I can file American income tax for the same accounting year.

3 - the value of the tax liability itself is a distant third in terms of hassle than any of the above. (I’ll include in this bucket the fact that Americans are taxed on income earned abroad, putting us at enormous disadvantage for work opportunities vis—a-vis peer expats who come from other countries)

Re:Wealthy people are renouncing American citizenship by 1024core on Thursday August 05, 2021 @01:13PM (#28076598)
Why doesn't the US reduce it to a flat tax? Say, $1000/year to send you your election ballot, and evacuate you in case something goes horribly wrong.
Re:Wealthy people are renouncing American citizenship by javert on Thursday August 05, 2021 @02:57PM (#28077972)
The US government doesn't work like that. There isn't some logical person making logical decisions.

For this change to occur, many senators and representatives would have to be directly and personally incentivized to make the change.

They aren't.

Re:Wealthy people are renouncing American citizenship by mbg721 on Thursday August 05, 2021 @10:39PM (#28082713)
Moreover, they're incentivized to do the opposite. Expats aren't a sympathetic group to any major voting demographic.
Re:Wealthy people are renouncing American citizenship by kingosticks on Thursday August 05, 2021 @05:27PM (#28080110)
And how about they make this service opt-in. I was born in the US but I have had nothing to do with the place for 95% of my life and I don't want their help. Why must I fill out their paperwork every year or pay them money to opt-out (which I can't even do anymore because of the current backlog).
Re:Wealthy people are renouncing American citizenship by emodendroket on Thursday August 05, 2021 @12:15PM (#28075800)
Perhaps the revenue is not very great but if there were a blanket exception I think you’d suddenly find a lot more people gaming then system to not technically be US residents and thereby escape large amounts of liability.
Re:Wealthy people are renouncing American citizenship by ElFitz on Thursday August 05, 2021 @01:13PM (#28076606)
Most countries don’t tax citizens living abroad on foreign revenue, and just forget about them once they become residents elsewhere (unless they still have income from their country of origin).
Re:Wealthy people are renouncing American citizenship by robin_reala on Thursday August 05, 2021 @01:55PM (#28077204)
And by most here, you mean every single country in the world apart from the US, Eritrea, Myanmar and Hungary.
Re:Wealthy people are renouncing American citizenship by randomchars on Thursday August 05, 2021 @03:21PM (#28078276)
Hungary does not tax it's citizens living abroad.
Re:Wealthy people are renouncing American citizenship by robin_reala on Thursday August 05, 2021 @03:35PM (#28078452)
I was going by the table at https://en.wikipedia.org/wiki/International_taxation#Individ... but it’s entirely possible that it’s incorrect.
Re:Wealthy people are renouncing American citizenship by naniwaduni on Thursday August 05, 2021 @04:09PM (#28078992)
It looks like Hungary technically taxes nonresident citizens except in almost every case where it would matter.
Re:Wealthy people are renouncing American citizenship by simonh on Thursday August 05, 2021 @03:51PM (#28078699)
That's pretty easily dealt with through residency thresholds. We do this in the UK, counting people resident for tax purposes if they spend more than so many days in the UK in a given year. I would be very surprised if the US doesn't already do this to determine non-citizens tax status.
Re:Wealthy people are renouncing American citizenship by emodendroket on Friday August 06, 2021 @08:59AM (#28086525)
That's how state taxes are dealt with in the US and a number of people go to great pains to make sure they stay exactly the number of days in some high-tax state that lets them skirt liability. I'd be surprised if similar things didn't happen in Europe but I don't pretend to be as familiar with what goes on there.
Re:Wealthy people are renouncing American citizenship by simonh on Friday August 06, 2021 @01:44PM (#28090539)
Sure, people definitely skirt around the edge if the rules. They’ll do that wherever you set the thresholds though.