Renunciation of Citizenship on the Rise

California is a beautiful place to visit.  The variety of landscapes and weather patterns and people attract visitors from all over the world.  Many love it so much that they decide to stay in California and call it home.  However, I have lived in California all my life, and for every one person outside of California longing to relocate to the Golden State, there are 10 people here in this state hoping to move out.  This statement does not reflect the results of an official survey or study, just an observation.

Why are so many Californians looking to set up their residence elsewhere?  It’s the same reason a number of Americans are renouncing their citizenship.  TAXES.  The people just want tax relief.

It is expensive to live in California and it’s expensive and burdensome to pay US taxes while living abroad.  Escaping California taxes is not so difficult — you just move to a different state.  But if you wish to legally escape your US federal tax responsibilities, you must renounce your citizenship.  Last year at least 1,788 people formally renounced their citizenship.  According to IRS numbers, that’s more than in 2007, 2008, and 2009 combined.

“The complexity of international tax law, combined with the administrative burden placed on these taxpayers, creates an environment where taxpayers who are trying their best to comply simply cannot, … For some U.S taxpayers abroad, the tax requirements are so confusing and the compliance burden so great that they give up their U.S. citizenship.

~ Nina Olson, National Taxpayer Advocate

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