Tuesday, April 17, 2012

The IRS is chasing people out of the United States

I have written before about leaving the United States.  In November I wrote about a huge increase in the number of people leaving.  Currently in the US each person's share of the national debt is $130,000.

Tax time pushes some Americans to take a hike reports another reason why people are leaving:

"'Truth, justice, and the American way' - it's not enough anymore," the comic book superhero said, after both the Iranian and American governments criticized him for joining a peaceful anti-government protest in Tehran.

Last year, almost 1,800 people followed Superman's lead, renouncing their U.S. citizenship or handing in their Green Cards. That's a record number since the Internal Revenue Service began publishing a list of those who renounced in 1998. It's also almost eight times more than the number of citizens who renounced in 2008, and more than the total for 2007, 2008 and 2009 combined.

But not everyone's motivations are as lofty as Superman's. Many say they parted ways with America for tax reasons.

The United States is one of the only countries to tax its citizens on income earned while they're living abroad. And just as Americans stateside must file tax returns each April - this year, the deadline is Tuesday - an estimated 6.3 million U.S. citizens living abroad brace for what they describe as an even tougher process of reporting their income and foreign accounts to the IRS. For them, the deadline is June.

It will be interesting to see if this trend continues.  If the national debt continues to grow and if taxes climb I think more and more people will leave.

Hat tip: Instapundit

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