Looks Like More Wealthy Americans Are Saying Goodbye to the U.S.

Looks Like More Wealthy Americans Are Saying Goodbye to the U.S.

The country just got done celebrating its independence this past weekend. With fireworks and all kinds of parties, Americans celebrated to show their appreciation for one of the greatest gifts they have: Freedom. Most Americans are very proud of their citizenship, even if they don’t always like everything the about the laws of the land. One of the topics that is often a sore spot is taxes, especially on the wealthy. With that in mind it’s no surprise that there is another report claiming that more of America’s wealthy are choosing to give up their American citizenship in order to avoid the high cost of taxes in the United States. It sounds like a broken record.

Americans Saying Goodbye to the US

It’s not that these citizens aren’t proud of their country, but rather they just can’t come to grips with the continued effort by the federal government to take so much of their money, simply because the earn more than others. According to reports, more Americans renounced their citizenship during the first quarter of this year, than during any other recorded quarter.

Of course, the total number on record over that time period was only 1,335, which of course represents a mere drop in the bucket compared to the total number of American citizens. However, when compared to all previous years, 2015 appears to be headed for a record for the most total defections in a single year. Therefore the total number cannot be discounted as insignificant.

A Growing Trend Amongst the Wealthy

Likewise, the numbers continue to increase each year. The total number of defections has risen consecutively each year since at least 2012 and current numbers would indicate that the total for this year would surpass 5,000 people. Just last year the total number of defections was 3,415. According to several tax lawyers, there are indications that the numbers could continue to grow. Many lawyers say they have dozens of clients who ask about this option on a regular basis. In fact, according to one online survey done by a Hong Kong firm, nearly one-fourth (23 percent) of respondents said that they are “seriously considering” renouncing their citizenship because of taxes.

Losing the Wealthy a Cause for Concern

According to these same lawyers, the increasing number of defections is cause for concern, because most of the people who leave are wealthy. The reason these individuals are leaving is because the IRS requires all American citizens to report their income from anywhere else in the world and pay taxes on it, even if they didn’t earn the money in the U.S. and when they don’t even live in the country. That is a double whammy because these individuals must pay taxes in the countries where they live and earn the money, already. With so many other countries offering lower tax rates, more and more wealthy individuals are saying enough is enough and heading for the borders.

Farewell to Higher Taxes

It appears that as long as the U.S. continues to employ its international tax laws and require such stringent reporting and tax paying that more and more wealthy individuals will just decide to pack up and leave for good. It’s a scenario that could potentially cost the country millions because many defectors are counted among the nation’s wealthiest individuals.

We hope you found this article about “Looks Like More Wealthy Americans Are Saying Goodbye to the U.S.” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe to our YouTube Channel for more updates.

Considerately yours,

GROCO, GROCO Tax, GROCO Technology, GROCO Advisory Services, GROCO Consulting Services, GROCO Relationship Services, GROCO Consulting/Advisory Services, GROCO Family Office Wealth, and GROCO Family Office Services.

Alan Olsen, CPA

 

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

Proud sponsor of the AD Show.

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

Posted in

Chris Kowalik: Simplifying Retirement Education

In this episode of American Dreams, we sit down with Chris Kowalik, founder and CEO of ProFeds, to discuss her inspiring journey from serving as a Marine Corps Arabic linguist to becoming a leader in retirement education for federal employees. Chris shares her insights on simplifying complex government benefits, empowering federal workers to make informed…

Happy Holidays 2024!

Happy Holidays 2024!

Happy Holidays 2024!  As the holiday season approaches, on behalf of Alan Olsen, we at GROCO, Legacy Builders, and the American Dreams show want to take a moment to express our heartfelt gratitude to you—our valued friends, clients, partners, and subscribers. This time of year offers a unique opportunity to reflect on the moments that…

Kal Mentak

Dr. Kal Mentak: Eliminating Preventable Blindness

Dr. Kal Mentak: Eliminating Preventable Blindness This week we sit down with the Dr. Khalid “Kal” Mentak, a visionary in global eye care innovation. With over 45 technology patents and groundbreaking contributions to cataract surgery and ocular implant technologies, Dr. Mentak’s work has transformed lives worldwide. Now Dr. Mentak is spearheading a global humanitarian effort…

Bob Haney

Bob Haney, Creator of Heavenly Waffles   Interview Transcript: Alan Olsen This is Alan Olsen, and welcome to American dreams. My guest today is Bob Haney. Actually, I should correct that the chef Bob Haney, he is the founder and the creator of Heavenly Waffles. Bob, welcome to today’s show. Bob Haney Alan, thanks so much…