It is frequently said and generally true, especially well
into the 1900s, that America is a land of immigrants, due to the huge numbers
of people that have flocked to the United States since the early 1600s when the
Pilgrims began the process, crossing the ocean in a long and perilous journey seeking
religious freedom. A major wave of immigrants arrived here during the colonial
era, during which the United States of America was born, and another wave
occurred from 1880 to 1920, as thousands arrived seeking greater economic
opportunity.
While these periods saw immigrants voluntarily traveling to America, thousands of African slaves reached our shores, brought here against their will from the 17th century well into the 19th century.
While these periods saw immigrants voluntarily traveling to America, thousands of African slaves reached our shores, brought here against their will from the 17th century well into the 19th century.
Four hundred years after the Pilgrims sought freedom of
religion, America is still a favored destination for people from many other
nations, and many or most of them come from highly troubled circumstances in
their home countries and seek a better life, and as we have seen more recently,
many sneak across the borders, and some come here to cause trouble and pain.
Curiously today, we also find thousands of Americans
voluntarily giving up their U.S. citizenship for that of other countries. This
is a trend that has seen surprising growth over the last several years.
Looking back to 1998, 398 Americans gave up their
citizenship, and through 2009 the number of American expats ranged from a low
of 231 in 2008 to a high of 762 in 2005, which was the end of a slow but steady
seven-year increase in expatriate activity, according to data from the U.S.
Treasury Department. After that, the numbers bounced around below the 2005
high, but then in 2010 that number nearly doubled, with 1,534 Americans giving
up citizenship. This was the start of a period of increasing numbers of
expatriates for every year except one, until it peaked last year at 5,411.
Interestingly, more than one-third of those expats in 2016 took
this step in the last quarter of the year when the presidential campaign ended
and the election was held. This raises the question of whether so many did so
in the last three months of the year because they feared Hillary Clinton would
win the election, or whether they decided to split after Donald Trump defeated
her to become president?
During the run-up to the election a long list of
recognizable names threatened to leave the country if Trump won, including one
Associate Justice of the Supreme Court, Ruth Bader Ginsberg. It is worth noting
that Ginsberg and many, or perhaps all, of the others threatening to leave are
still here.
As these personalities were advertising what turned out to
be their idle threats, countries like Canada and New Zealand advertised themselves
as desirable destinations for Americans ready to abandon ship. As it turns out,
New Zealand is the third most popular destination for American expatriates
after Malta and Costa Rica, and followed by Mexico.
Why are people who are citizens of perhaps the most sought-after
destination for people leaving other countries willing to give up U.S.
citizenship to live somewhere else?
There are several reasons, such as that some of them fell in
love with the culture and history of another country while on a trip abroad,
and decided to move there. Or perhaps some may be immigrants who came
here, became citizens, and want to return to their native land.
But another reason explains expatriation: The escalation
of offshore penalties over the last 20 years is likely contributing to the
increased incidence of expatriation, in the judgment of the tax attorneys who
track expatriate data on their International Tax Blog. And US News adds that
“The U.S. is
one of a very small number of countries that tax based on nationality, not
residency, leaving Americans living abroad to face double taxation.”
The U.S. tax code once again rears its ugly head. Its irrational
design not only encourages businesses to move to other countries, but encourages
individuals with earnings in other countries to abandon their citizenship, as
well. However, President Donald Trump has pledged to overhaul the tax code,
reducing tax rates on businesses and individuals, among other changes, and that
may make a difference for these people.
Inside the tunnel where the Left lives, peering out on the
world with their narrow view of things, everyone that makes a lot of money and every
large company is an evil thing that threatens survival, so tax breaks that help
the wealthy and the rich corporations are a bad thing.
But moving past the liberals’ tunnel vision, removing tax
provisions and regulations that punish businesses and creating an environment that
invites businesses, will encourage those that left to return and will help domestic
businesses to expand and produce the jobs the country so badly needs.
Lowering personal tax rates and raising the standard
deduction will leave more hard-earned income in the hands of regular people,
who will then spend and/or invest it, both of which help the economy grow. And
doing away with taxing foreign income will remove a factor encouraging people
and their money to seek greener pastures elsewhere.