what are the benifits and negatives of renouncing United States citizenship?
Question is broad but written in accordance to the knowledge I wish to acquire.
- Brother HesekielLv 78 years agoFavorite Answer
The only benefit would be to avoid taxation in the future.
Let's say you hold Canadian and U.S. citizenship, make about a $1,000,000 per year from your offshore investments, yet want to retire in Canada or your personal island in the Pacific and do not wish to return to the United States ever, then you could formally renounce your U.S. citizenship at the U.S. consulate in Canada and thus escape the IRS, based on the fact that Uncle Sam taxes worldwide income.
Yet, realistically viewed, if you make millions a year, you should have a tax professional who can advise you to invest properly. If Warren Buffet who's worth . . . what . . . 50 billion dollars, pays less taxes than his secretary, you should be able to do the same. Also, if you cannot keep up with spending your interest alone, even if you try as hard as you can, what's the point of saving money on taxes?
The disadvantage would be that you can never return to the United States as long as you live, because Uncle Sam would not like it very much if you showed him the erected middle finger and told him to put his citizenship where the sun don't shine.Source(s): The son of a German mother and a Swedish father, I have lived in 6 European countries before immigrating to Southern California two decades ago. I work as a corporate attorney in Santa Barbara and answering questions here is my way of giving back.
- gerriorLv 44 years ago
maximum human beings could experience safer with Charlie (or his dad) interior the White residing house. while Obama promised substitute he become touching on his socks. And we’ve in straightforward terms have been given his observe that he’s performed that! The final excuse for a president made u . s . a guffawing inventory international. the yankee passport has become a source of acute embarrassment. As you study this he Bush legacy is costing $tens of millions of Tax income line with-hour for unlawful wars Bush started out on the returned of his 9/11. a minimum of Charlie has the middle to call for a suitable inquiry into 9/11. Obama has proved himself too spineless to even meet Charlie to communicate with reference to the conceal-up.
- Anonymous8 years ago
There really is no benefit. Sometimes people who are really rich do it to cheat paying taxes though. If you want to serve as an officer in a foreign military or as an elected official in another country, you can do it. If you are filthy rich and you earn money from abroad, it could be good. Otherwise, its pretty stupid....you have to apply for a visa to enter the US again, you can be deported if you come back or be denied entry, besides, you have to get another citizenship before you renounce a US one.
- 8 years ago
You dont have to pay income tax and if you made the credits for social security you get your payments regardless. If you are a minority you dont have to listen to racist remarks and be treated like a second class citizen.
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- 8 years ago
1) We all get to post sarcastic comments (also a benefit for us
2) We kick you out.
3) WHY.Source(s): ... Pure awesomeness
- r1b1c*Lv 78 years ago
Benefits, when traveling abroad you will not be a target for terrorists.
Drawbacks, you wont have access to social security when you retire.