Originally Posted by Texas Proud
I did not read that much... but I would bet that the for 88 whatever is the place to look... and from what I read if you were not 'rich' then off you go.. have fun..
It is the rich (but should be higher than $2 mill) that they want to get their hands on.. a few years back some of the mega rich were just giving up their US citizenship and moving to an island that did not tax them.... and they did not stay in the US that long anyhow as they traveled the world... so it was no big deal to them and it saved them millions in taxes...
Remember... all US income is subject to US tax no matter who you are or where you are... it is only the 'world wide' income that is being saved...
Texas Proud, No I am not seriously considering leaving. I am an American, and I love my country and what it stands for both historically and today. However, I always like to know all of my options
I have paid a boatload of taxes over the years as a single high earner with no tax deductions (besides state tax!). Since I have considered retiring elsewhere, this would only even be considered if I were very happily situated in some second world paradise.
For example, if socialized medicine were to come to the US for all ages, and they continued the worldwide tax regime, this could be very bad for American expats (higher taxes but absolutely no benefits since you are paying for your own care overseas). Other countries basically allow you to opt out of nationalized medical systems by establishing non-residency without expatriation.
That is a good point about US source income. I would probably be subject to 15% withholding on dividends and interest. Unless many of the holdings were moved at the time of expatriation (and assuming no tax "event", i.e., don't have to pay deferred cap gains taxes -- which is doubtful).
If memory serves, only about 2000 people per year expatriate from the US. I am guessing the number in the other direction becoming citizens is about 1000 times higher.