Formal renunciations of U.S. citizenship have once again reached a new high, as Barack Obama's "Soak the Rich" agenda forces more and more upper income taxpayers to seek shelter from these attacks on their success, by renouncing their U.S. citizenship in favor of a foreign citizenship.
Every quarter, as required under United States Code (USC) Title 26, Section 6039G, the name of every U.S. citizen who has formally renounced his citizenship in the prior quarter is published in the Federal Register (see lists). This publication of the names of expats has been going on since the passage of the 1996 Health Insurance Portability and Accountability Act (HIPAA). The first such list was published in early 1997 and covered the 4th quarter of 1996.
The number of expats on those lists rose slowly for several years, peaking in 2005, at 762.
That doesn't sound like a large number till you consider that the vast majority of expats never formally renounce. They just take citizenship in some other more success-friendly nation, start paying tax there and stop paying U.S. taxes. That may be illegal under U.S. law, but only a handful of countries will extradite someone to the USA on tax-related charges, because most other countries see our tax laws as being abusive. The point is that for every one taxpayer who renounces, hundreds just vanish. But these official numbers do give us a good idea where those unofficial numbers are headed and it's terrifying.
But to get back to our subject, in 2006, due to some laws passed in 2005, formal expatriations hit an all-time-low of just 279. The number climbed only slightly the next year. But in 2008, formal renunciations hit another record low of just 231, for the whole year. That was the year that Bush left office and the number was less than half the level of expatriations that he inherited. Those who have read my work over the years know that I'm no fan of George W. Bush. But even I have to admit that it was his policies that led to this dramatic reduction in expatriations. In fact, it's one of the few things that he did right.
But then, Obama was elected on what amounted to a "Soak the Rich" platform and expatriations skyrocketed. In 2009 formal renunciations reached their second highest level. Then in 2010 and 2011, formal expatriations set two successive record highs, each doubling the record high, from before Obama took office. Although there was a drop in formal renunciations of citizenship in 2012, even that number would have been a record high, had it not been for the record highs set the previous two years.
But then comes the first quarter of 2013. Now keep in mind that we're comparing just one quarter of 2013, against whole years that have gone before.
The most recent publication of the names of U.S. expats covers the first quarter of 2013. Yet that list for just that first quarter of 2013 includes the exact number of names - 679 - that was the total of all four lists for the whole first year that Obama was in office.
Let's put that in different terms. The number of U.S. citizens who formally renounced their U.S. citizenship in the first quarter of 2013 was more than had renounced in any whole year before Obama took office, going all the way back to 1996, with the sole exception of 2005, which was a mere 12% higher and that was for the whole year; not just one quarter.
To put this into even better perspective, roughly three times as many U.S. citizens renounced their U.S. citizenship in the first quarter of this year, than renounced the whole last year that Bush was in office. Extending that out for a year, that number represents a rate of formal renunciations that is roughly 12 times what Obama inherited. That's appalling.
If expatriations continue at this rate for the rest of the year, they will peak at almost four times the record high, before Obama took office. But unfortunately, the trend is upward and Obama continues to preach "Soak the Rich." So instead of continuing at this level, expatriations will likely climb even more.
By contrast, the FairTax would act as a wealth magnet, drawing in both all those expatriated dollars and foreign dollars and of course, the jobs that those dollars create.
The question that you may be asking yourself about now is, "How many of those expats are poor?" That is a very good question. But it's not the most important question.
In fact, as you may have already surmised, the vast majority of those expats are in the upper income percentiles.
The obvious problem here is that Barack Obama's "Soak the Rich" agenda is not only failing to bring in more tax revenue, but it's actually driving out our most prolific taxpayers and most profuse job creators. If Obama continues his "Soak the Rich" agenda, then there may soon be no rich people left to provide jobs in the USA or to pay double their share of taxes, as they currently do.
So the critical question that you need to answer is, "When was the last time you heard of anyone being hired by a poor person?" The answer to that question should serve as a warning of what to expect in your future employment, if Obama continues to drive away the job-creators and major taxpayers, with his futile attempts to "Soak the Rich".