Monday, January 8, 2007
In a small but growing movement, United States citizens are giving up their U.S. citizenship to save taxes, even though to do so means that they may never be allowed to reenter the United States.
See Doreen Carvajal, Americans abroad are giving up citizenship for lower taxes, International Harold-Tribune, Dec. 17, 2006, which reports that "with new tax pressures facing American expatriates due to legislation enacted in Washington this year , some international tax lawyers say they detect rising demand from citizens to renounce ties with the United States — the only developed country that taxes it citizens while they are overseas. Americans abroad are also taxed in foreign countries where they reside."
Special thanks to Prof. Joel C. Dobris of the University of California-Davis for bringing this article to my attention.