Wealthy Americans Massively Renounce US Citizenship

According to new data compiled by Axios, an increasing number of the richest citizens in the United States have been reluctant to be Americans for some time now. Writes about it Business Insider.

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In 2020, according to the US Internal Revenue Service (IRS), 6707 Americans renounced their citizenship—a 237% increase from 2019. This is especially noticeable among some of the richest, who have been declining at higher rates since 2016.

The US passport lost most of its value in 2020. Some of the most common reasons why the wealthiest Americans are giving up citizenship include dealing with the COVID-19 pandemic, general social unrest and, perhaps most importantly, the presidential election.

In addition, due to travel restrictions due to COVID-19, the rich could not even go on vacation.

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Nuri Katz, founder of Apex Capital, a firm specializing in citizenship by investment programs (CIP), said the wealthy had to adapt to the inability to travel for work or pleasure, leading to a desire to "diversify" their lives.

Now taxes may be one of the reasons for the exodus of the wealthy from the United States. US President Joe Biden has proposed raising taxes aimed specifically at the rich to cover infrastructure costs. These include a 39,6% capital gains tax for Americans earning more than $ 1 million, which will be levied alongside the 3,8% Obamacare tax, bringing a capital gains tax of 43,4%, nearly double current level.

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A report by the Institute for Taxation and Economic Policy (ITEP) found that 1% of the largest US taxpayers would bear the burden of Biden's proposed tax hikes, each paying an additional $ 100 a year in taxes.

The status of these tax hikes is still in limbo as they did not make it to the latest infrastructure bill. But the alleged tax hike could still be a problem for some wealthy Americans and induce them to renounce their citizenship.

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