My Country Did What?!!!
- July 1st, 2008
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Did you know that if you no longer want to be a US Citizen you will have to pay out the nose for it? According to the Heroes Act of 2008 you will. Passed on June 17, 2008 one section of the act will force,
“…anyone voluntarily giving up his or her citizenship will be taxed on ALL of his assets as if he or she had sold them — paying capital gains on assets that have increased in value, even though they have not been sold.”
I wonder why?
My sources are here, and here.
If you have not before I would encourage any of you to read George Orwell’s book 1984.
Steve, I don’t want to be contrary or anything but you’re obviously wrong. How could something called “The Heroes act” contain something silly like that?! ITS FOR HEROS!!!
Common, don’t bring that trash in here.
I found a copy of the bill and the language is pretty confusing. It sounds like they’re just tying up a tax evasion loop though. You are already supposed to file taxes for worldwide income regardless of where you’re living.
(d)sub(1A) “In the case of any eligible deferred compensation item, the payor shall deduct and withhold from any taxable payment to a covered expatriate with respect to such item a tax equal to 30 percent thereof.”
I would receive a 30% tax on investment payouts and retirement
(h)sub(2)…”property which was held by an individual on the date the individual first became a resident of the United States (within the meaning of section 7701(b)) shall be treated as having a basis on such date of not less than the fair market value of such property on such date.”
I would be taxed on any property as if I had sold it and would have to pay the due tax even if I retained ownership.
But, I do agree sam. I think the aim is an attempt at squelching tax evasion. However, if someone like myself was going to relinquish citizenship the only way I could pay the property taxes would be to sell the property.
Here is the actual text for anyone else who would like to read.