Civil unrest, Financial instability and a presidential election leaving many people feeling there’s little chance for improvement after November are all factors as Americans continue to renounce their Citizenship in record numbers.
Treasury Department figures from 2015 revealed that more than 4,000 American citizens decided to cut ties with Uncle Sam last year, an incredible 20 percent increase over the number of people who made the decision a year earlier.
But looking at long-term figures, the numbers aren’t all that surprising. A perfect storm of Economic Turmoil combined with increasingly confusing tax obligations and regulatory burdens for American earners have made citizenship renunciation—especially for Americans already living overseas— the obvious smart choice.
For many of the 7.6 million Americans living overseas, the final straw was the 2010 Foreign Account Tax Compliance Act (FATCA) which created huge headaches for them and the banks they dealt with.
The law requires foreign Financial Institutions to keep track of Americans with accounts in excess of $50,000 and necessitates care in dealing with such customers. Failure to comply can get the financial institutions frozen out of U.S. financial markets. That’s in addition to another law which requires Americans to disclose foreign bank holdings above $10,000.
So far this year, 1,666 Americans have already opted to shut Uncle Sam out of their pocketbooks.
Obviously the decision to renounce U.S. citizenship is a major one and would require considerable planning for living and working arrangements in the future. But for those who are able to make a workable plan, renunciation means an end to personal IRS obligations and estate and gift tax exposure.
The downsides, of course, include the possibility of becoming stateless for people unable to gain legal status under another nation and the likelihood of difficulty traveling back to the U.S.
And because the idea of ducking out of the U.S. before things worse is increasingly appealing to some folks looking for a freer life and brighter financial future, government bureaucrats are working to reverse expatriation trends with a number of tactics.
Back in 2014, the State Department hiked the price of renunciation from $450 to $2,350 in an attempt to create an incentive for tax-weary Americans to think twice before severing their formal commitment to the country. Interestingly enough, before 2010 renouncing one’s U.S. citizenship didn’t cost a cent.
The federal government also likes to name and shame each American who renounces citizenship on a quarterly basis in the Federal Registrar.
But if you’re still interested in the idea of renouncing citizenship and looking for a life elsewhere, here’s what the government has to say. Before you round up $2,350 and head to a U.S. consulate, however, read this bit of advice. It’s a complex process.
For those not quite ready to consider such a drastic measure to hedge against coming economic turmoil and the very real possibility of wealth confiscation by a panicking federal government, knowledge and preparation are still the best protections. It’s also worth noting that most leading economic experts predict that the economic turmoil likely to kick into full gear following the 2016 election will have far-reaching global consequences. So, even if Uncle Sam’s fingers aren’t on expatriates’ money, someone will be looking for it.
Simply protecting your wealth in an increasingly unstable financial world can seem daunting. And that’s just what they want you to think. But the truth is, with the right combination of preparation, self-sufficiency and sound investment, you can actually learn how to profit from all of the ways the world’s government-banking cartels are currently scheming against average people. With the right tool set, you’ll beat them at their own game every single time.
As the U.S. quantitative easing schemes have failed, central bankers here have followed the lead of their failed international counterparts in promoting “helicopter money” policies. It means what it sounds like: Basically printing money to infinity and throwing it into the air.
With the recent British exit from the European Union shaking up markets overseas and increasing U.S. uncertainty, you can bet the banksters are going to try something.
But as GS Early recently noted, most Americans won’t realize what has happened until it’s too late.
You won’t see the turmoil on the front page of any paper. And no one will really talk about the panic in the banking sector right now. Part of this is because the bankers know that worse comes to worse, taxpayers will be on the hook for any significant problems. The other part is because everyone is acting like a prize fighter who surprisingly gets floored by an underrated contender. Brush it off and pretend your legs aren’t rubbery and your head isn’t spinning; don’t let him know you’re hurt.
The result– that “taxpayers will be on the hook” part– is two-fold. First, hyperinflation will drive up consumer costs massively and destroy savings and investment accounts. In addition, lawmakers, regulators, government bureaucrats and the bankers that created the problems in the first place will all begin talking about the need for new reforms and safeguards. Oh yeah, and bailouts.
Joe America, as you might imagine, doesn’t come out on top. After having his spending power emaciated and his savings and investments gutted, he’ll be asked to pay higher fees for financial services to help financial institutions cover the cost of new regulations the government says will protect him next time. Just like they did last time. He’ll also pay higher taxes to pay the regulators who enforce the rules that drive up his banking fees.
The system, as you can see, is rigged. The upside is that if you can see it, you can beat it.
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