Here in the US, folks tend to assume that the United States is the proverbial “city upon a hill,” a place to which everyone does (or at least should) aspire. Many of my colleagues overseas have had some serious doubts about that premise for some time, but increasingly, even US citizens are having their doubts. According to a report in Newsweek, an increasing number are putting their money where their mouth is, with over 5,000 US citizens giving up their citizenship in the first half of 2020, more than twice the number for all of 2019.
A significant number of those giving up their citizenship are likely individuals who were born in the United States or to United States parents, but who no longer reside here and who have few or no ties to the United States. Many of those folks (like former London mayor and now Prime Minister of the United Kingdom Boris Johnson) have become increasingly disenchanted with the long arm of American tax law. Wealthy citizens should be aware, however, that giving up citizenship can be very expensive given the United State’s expatriation tax.
In any event, neither the process nor the cost has changed, so pundits speculate that the increase is due an increasingly divided electorate (and society) as well as economic and societal turmoil resulting from the COVID-19 pandemic. Some may have just realized that the dwindling reach of a US passport isn’t worth the headache, especially now.