It’s way worse than that; You have to pay income tax on your entire net worth when you renounce your citizenship. Basically, they say that when you renounce your citizenship, all of your assets are considered “sold” so you need to pay tax on it. The US also requires you to keep paying income taxes for a decade after you have renounced your citizenship. There was a big push around the 2008 crash, where congress became concerned that people would renounce their citizenship to dodge taxes. So they started making laws that required taxes to be paid even after expatriating.
Imagine moving to Germany and renouncing your citizenship, and you’re still paying income tax in America, for the income you made while in Germany.
IDKWhatUsernametoPutHereLolol@lemmy.dbzer0.com 1 week ago
🤣
Or just move to some EU country and just refuse to pay your US taxes, what are they gonna do, arrest you? 😉