The information in this column is not intended as legal advice, but to provide a general understanding of the law. Any readers with a legal problem, including those whose questions are addressed here, should consult an attorney for advice on their particular circumstances. It is not fair that I have to pay a 40 percent tax on the income I earn, and then my kids will have to pay another 55 percent on what I own when I die.
Many people think about giving up their citizenship, but very few do it.
Not only will you be moving away from your friends and family, but you may not even be able to avoid taxes by doing so. For starters, you can give up your citizenship in a number of ways, including declaring allegiance to another country, serving in a foreign army or in certain types of foreign government employment, or voluntarily renouncing your citizenship by signing a declaration of renunciation. This means you will continue to be subject to U.S. taxes for 10 years under special, unfavorable rules. The IRS will also consider the extent of your ties to the United States, the tax laws of the country you have chosen as your new home, whether you continue to own assets here, and whether your spouse is still a U.S. citizen. Moreover, if you are granted a visa, you can't stick around too long.