[The following post by TDV Chief Editor, Jeff Berwick]
Ah, “Labor Day.” A government created day on which those people who work (read: producers) are supposedly celebrated by the people who don’t (government and welfare recipients). Pat yourselves on the back, entrepreneurs – the parasites love you. As I’ve written here in The Dollar Vigilante (TDV) Blog, approximately 65 million US citizens work. The rest receive welfare in various forms.
So, as you see, for about 252 million Americans, life is pretty good. The government taxes those who create vast sums of wealth, half of which is then stolen (“for the greater good”) and re-allocated to people who can’t work or won’t. A small percentage of this is allocated towards some useful things, sure, but most is squandered by the growing bureau-rat class.
So, it’s safe to say that about 252 million individuals are not interested in leaving the US. Expatriation!? They probably don’t even know what that means. They’d be absolutely insane to want to do so….They have it pretty good. They’re born, they immediately get separated from their family and educated (read: brainwashed) in government year-round camps, torn from precious REM sleep and fed lackluster school lunches only to fail by world standards. And then, after lots of brainwashing (some of which costs hundreds of thousands of dollars), there is a job awaiting them in an exploding public sector – a militarized public sector at that.
Many hardworking Americans have decided they are fed up with subsidizing a parasitic outgrowth in the swamp of DC. They want out. Hence the increase in US expatriations we’ve covered.
One conservative talk radio show host expressed this opinion when he quit live on the air in August.
Global taxation is here, in the form of FATCA, making it even harder for US citizens to get out from under this system. The federal government knows there is a brain drain taking place, and with brains goes capital. In 2013, there was a 221% increase Americans renouncing their citizenship. Many, including ourselves, say even that number is cooked.
Now comes a 422% increase in the price to renounce citizenship, as Robert Wood covers for Forbes.
Tax compliance and a payment of $450 (not to mention many lawyer fees assuring tax compliance and filing various paperwork) is no longer enough to get out. Now, to leave officially leave America, a US person will have to cough up $2,350 just to beg for permission to leave. This trend will only worsen. The State Department says it needs to recuperate costs forincreased demand. Apparently instituting police state and bankrupting a citizenry results in a bit of extra paperwork as people flee. According to the notice:
1. Consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation as an alien.
2. Consular officers must verify that the renunciant is a U.S. citizen and they must conduct a minimum of two intensive interviews with the potential renunciant. Consular officers must even review at least three consular systems before administering the oath of renunciation.
3. The final approval of the loss of nationality must be done within the Directorate of Overseas Citizens Services in Washington, D.C. After that, the case is returned to the Consular officer overseas for final delivery of the Certificate of Loss of Nationality to the renunciant.
4. These steps add to the time and labor be involved in the process. Accordingly, the Department is increasing the fee for processing such requests from $450 to $2,350.
Things are only going to get worse. In the wake of Facebook co-founder Eduardo Saverin renouncing for Singapore, Senators Chuck Schumer and Bob Casey sought to raise the exit tax 30%. This has not happened, but we expect it one day will. Wendy McElroy’s prediction that 2014 could be the last year to escape the United States might not come 100% true, but it seems that day is on its way.
TDV Passports helps get individuals started on the path towards renunciation by providing world class Second Passport services. If you’re not quite ready, TDV Newsletter will help you on your way towards personal economic peace.
Join us at the TDV Blog for fruitful discussion.
Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.