Over the past decade or so, a growing number of Americans have become so dissatisfied with the United States that they have made the decision to renounce their citizenship and seek greater pastures elsewhere. If you’re considering giving up your passport then be prepared to dole out more money.
The U.S. State Department announced that the fee to renounce your citizenship has increased to $2,350, which is a 422 percent increase from the $450 fee listed for the past couple of years. The reason for the substantial increase is that there has been a significant demand for dumping U.S. citizenship that it has garnered a lot more time and resources for state employees.
“Documenting a U.S. citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases,” he wrote. “The department believes there is no public benefit or other reason for setting this fee below cost.”
During the first half of 2014, more than 1,500 Americans have already given up their citizenship and passports, which is the highest number since 1998. The U.S. taxes expatriates wherever they live and with rising taxes these individuals would have no other choice but to renounce their citizenship and reside elsewhere without being taxed.
Meanwhile, corporations have been participating in tax inversions in the last little while. Burger King was the latest American burger chain to merge with a foreign company – Tim Hortons of Canada – in order to save money on U.S. taxes.
Instead of creating a fairer tax system, the Obama administration has decided to condemn both corporations and individuals exiting the borders of the U.S. to save money. He accused these entities of “gaming the system” but also taking advantage of the country’s workforce, education, infrastructure and other benefits.
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