Posted on 06/29/2008 4:41:06 PM PDT by Coffee200am
A lot of people probably can't understand why someone would voluntarily give up American citizenship -- but if someone wanted to do that, they'd now incur financial penalties for it.
Congress just passed a new law that will stop your capital -- or at least a good portion of it -- at the border, should you decide not to be a U.S. citizen anymore. Is it, perhaps, in preparation for the possibility that Americans might rebel at the debt and taxes incurred by their government by leaving for lower-tax locales?
You probably didn't notice this little provision inserted into the Heroes Act of 2008, passed by Congress on June 17. The headlines in the press release about the law were about the increased benefits for veterans and families of deceased military.
But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act, which states that anyone voluntarily giving up his or her citizenship will be taxed on all of his assets as if he or she had sold them -- paying capital gains on assets that have increased in value, even though they have not been sold.
That's right. While everyone in the media is focused on keeping aliens out of America, Congress has voted to lock its citizens - or at least a good portion of their assets -- into America! Maybe they're thinking that patriotism won't be enough to keep the smart money from recognizing the coming increases in the tax burden.
Patriotism and Debt
We expect our elected leaders to be patriotic, to wear flap pins on their lapels? But how patriotic is it for our elected officials of both parties to drag our country into debt?
This year the Federal budget deficit will be a record $400 billion. That astonishing number will be added to our existing $9 trillion national debt. It's money that our government spends in excess of what it collects in taxes.
Government officials say they're shocked at the record number of American consumers who are filing for bankruptcy. Yet those same politicians are spending America into an effective bankruptcy -- building a burden of current debt and promises of future debt that can never be repaid. Now, how patriotic is that?
Patriotism and Taxes
Do you consider it your patriotic duty to pay your taxes? Do you feel unpatriotic because you spend some time trying to figure out how to reduce your tax burden, by maximizing deductions whenever possible?
If that's not unpatriotic for you, is it unpatriotic for wealthy people, or corporations, to try to reduce their tax burden? Where do you draw the line? Perhaps it's most unpatriotic for our elected officials to construct a tax system that doles out benefits to special interest groups, pitting one group of Americans against another.
What's really unpatriotic, in my opinion, is trying to divide Americans through the politics of envy. Our country has moved forward because of our optimism and our belief that any American can build a better financial future. It has been our nature to honor those who have been successful, and seek to emulate them, not to destroy them because they have more assets or income.
Of course, that presupposes that the successful people accept their patriotic responsibility to give back to the society that made their success possible. And the facts show that Americans are the most charitable and generous people on the planet.
Think of Warren Buffett and Bill Gates, literally giving away their fortunes to help humanity. Or think of the people who filled sandbags along the Mississippi this month to save the homes of strangers.
When a government encourages the best in its citizens, by its policies and its example, patriotic citizens rise to the occasion. And when a government burdens its citizens, it inspires dissent and departures.
The Beatles famously left Britain, and Bjorn Borg left Sweden, when their governments raised taxes to such high levels that even these national icons departed. Are American lawmakers preparing for that kind of scenario with this new law?
Now in America, you can love it, or leave it -- but you can't take it all with you. And that's the Savage Truth!
So, how does this affect people moving from their expensive homes in the U.S. to their dream homes in the Caribbean, Mexico or the Mediterranean?
I hate to be fatalistic, but I don’t see our government getting smaller ,maybe brief periods of slowing down, but never actually getting smaller.
In 30 years:
Can you imagine that we will NOT have government provided health care?
Can you imagine us NOT having a “progressive” (soak the middle and upper classes) tax system?
Can you imagine people NOT being arrested for saying something that is deemed as not politically correct?
We are just spiraling down the toilet bowl of socialism.
They really need to get a girlfriend or boyfriend to take care of their "urges."
Jim Rogers recently moved to Singapore, and predicted something like this would happen.
So why not just remove all your wealth - then denounce citizenship? I mean, they can’t steal what they can’t touch.
Estonia? Interesting choice. Love their flat tax approach to life. A nice place on the Baltic sea...a little wine...a good Cuban cigar...oh yeah, I could do that.
Bump
I love my America! I want to go down with this beautiful ship!
Dear Senator Harkin,
As a native Iowan and excellent customer of the Internal Revenue Service, I am writing to ask for your assistance. I have contacted the Department of Homeland Security in an effort to determine the process for becoming an illegal alien and they referred me to you.
My primary reason for wishing to change my status from U.S. Citizen to illegal alien stems from the bill which was recently passed by the Senate and for which you voted. If my understanding of this bill's provisions is accurate, as an illegal alien who has been in the United States for five years, all I need to do to become a citizen is to pay a $2,000 fine and income taxes for three of the last five years. I know a good deal when I see one and I am anxious to get the process started before everyone figures it out.
Simply put, those of us who have been here legally have had to pay taxes every year so I'm excited about the prospect of avoiding two years of taxes in return for paying a $2,000 fine. Is there any way that I can apply to be illegal retroactively? This would yield an excellent result for me and my family because we paid heavy taxes in 2004 and 2005.
Additionally, as an illegal alien, I could begin using the local emergency room as my primary health care provider. Once I have stopped paying premiums for medical insurance, my accountant figures I could save almost $10,000 a year.
Another benefit in gaining illegal status would be that my daughter would receive preferential treatment relative to her law school applications, as well as "in-state" tuition rates for many colleges throughout the United States for my son.
Lastly, I understand that illegal status would relieve me of the burden of renewing my driver's license and making those burdensome car insurance premiums. This is very important to me given that I still have college age children driving my car.
If you would provide me with an outline of the process to become illegal (retroactively if possible) and copies of the necessary forms, I would be most appreciative. Thank you for your assistance.
Your Loyal Constituent, Xxxxxx Xxxxxxxxxx Burlington , IA
http://almostaverageamerican.blogspot.com/2007/06/i-want-to-be-illegal-immigrant.html
I think the pluses far out weigh the minuses.
Welcome to Free Republic autumnraine!
You're right. Something's going on with this that's not obvious... maybe a dollar crash?
As a native Iowan and excellent customer of the Internal Revenue Service, I am writing to ask for your assistance. I have contacted the Department of Homeland Security in an effort to determine the process for becoming an illegal alien and they referred me to you.
My primary reason for wishing to change my status from U.S. Citizen to illegal alien stems from the bill which was recently passed by the Senate and for which you voted. If my understanding of this bill's provisions is accurate, as an illegal alien who has been in the United States for five years, all I need to do to become a citizen is to pay a $2,000 fine and income taxes for three of the last five years. I know a good deal when I see one and I am anxious to get the process started before everyone figures it out.
Simply put, those of us who have been here legally have had to pay taxes every year so I'm excited about the prospect of avoiding two years of taxes in return for paying a $2,000 fine. Is there any way that I can apply to be illegal retroactively? This would yield an excellent result for me and my family because we paid heavy taxes in 2004 and 2005.
Additionally, as an illegal alien, I could begin using the local emergency room as my primary health care provider. Once I have stopped paying premiums for medical insurance, my accountant figures I could save almost $10,000 a year.
Another benefit in gaining illegal status would be that my daughter would receive preferential treatment relative to her law school applications, as well as "in-state" tuition rates for many colleges throughout the United States for my son.
Lastly, I understand that illegal status would relieve me of the burden of renewing my driver's license and making those burdensome car insurance premiums. This is very important to me given that I still have college age children driving my car.
If you would provide me with an outline of the process to become illegal (retroactively if possible) and copies of the necessary forms, I would be most appreciative. Thank you for your assistance.
Your Loyal Constituent, Xxxxxx Xxxxxxxxxx Burlington , IA http://almostaverageamerican.blogspot.com/2007/06/i-want-to-be-illegal-immigrant.html I think the pluses far out weigh the minuses.
Did you write this? It's brilliant.
I wish. But I heard it on the radio and tracked it down on the net.
We will be racing towards massive socialism in 2009. We already have large government programs. The Democrats aim to double or triple the size and scope of government and install themselves are permanent masters of our fate. The end of economic freedom is near.
Fedgov has become an evil all-consuming monster with no conscience.
LOL! Thanks. I needed that!
A knight of the British Empire who speaks with a Tennessee accent. Loaded. Renounced his citizenship in 1968 because of taxes. Now holds dual Bahamian and UK citizenship.
As for citizenship, since I'm not ethnically Korean, it would take longer for my citizenship application to be accepted than it would if I was applying to become an American citizen (and would probably be rejected anyway--Koreans are pickier than we are).
Libertarian ping! To be added or removed freepmail me or post a message here.
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