Considering US Citizenship Renunciation
Burning US passport
For quite some time, the United States has been on a downhill financial track. Most people who live there are aware of this, especially those of wealth. This is the primary reason that citizenship renunciation and a second legal passport should be considered by many U.S. citizens. U.S. citizens who hold the upper 5% of wealth are definitely the most common among those renouncing citizenship. The reason for this is simple – the upper 5% pay almost 50% of all U.S. taxes. There is also a menagerie of new laws which attempt to keep capital from leaving the country and to prevent wealthy persons from renouncing citizenship for tax purposes. One law taxes unrealized capital gains and future income of citizens who attempt to renounce citizenship at a fixed annual rate, even if they never return to the U.S. Because of these reasons, secondary passports go hand in hand with citizenship renunciation – not surprisingly, at that.
What citizenship renunciation and second citizenship and second passports basically break down to is a fundamental urge to protect what is yours. Everyone wants a bit more security in this age of economic strife. This is especially pertinent when the possibility of arbitrary asset seizure, unjust incarceration or general restriction hangs over you, solely for the fact of having above average wealth.
Of course, taxation is not the only reason one would desire to renounce citizenship or pursue a second passport. An individual’s current country of residence may prohibit certain diversions or habits which cause no harm to anyone, and are considered normal or accepted in many other parts of the world. In certain Muslim countries, it is considered a crime to partake in sexual intercourse with a consenting adult, sometimes even when that person happens to be your spouse. In others, a woman who has been forcibly raped is guilty of a capital crime. There are many factors, finances being highest on the list for most, which can feed an urge to renounce your U.S. citizenship and secure citizenship in a country other than the one where you happen to have been born.