Expatriates Go Galt: American Expatriates Escape Taxes by Giving Up Citizenship

There was a time when being an American was a badge of honor representing freedom and liberty. Since 1913, being an American has become a symbol of slavery to oppressive taxation. American expatriates feel it more as they pay double and triple taxes living overseas. The taxation has come to the point where former US Marines living abroad are now walking away from their citizenship to escape the bonds of American taxation.

“What we have seen is a substantial change in mentality among the overseas community in the past two years,” said Jackie Bugnion, director of American Citizens Abroad, an advocacy group based in Geneva. “Before, no one would dare mention to other Americans that they were even thinking of renouncing their U.S. nationality. Now, it is an openly discussed issue.”

In the last quarter of 2009, 502 expatriates gave up their American citizenship, many on the basis of American taxation. The number is growing as waiting lines in consular offices are growing.

The United States is the only industrialized country in the world that forces American citizens living abroad to pay income tax. These people are often taxed in the countries they live in as well.

An anonymous former Marnie who now lives in Switzerland says, “I loved my time in the Marines, and the U.S. is still a great country. But having lived here 20 years and having to pay and file while seeing other countries’ nationals not having to do that, I just think it’s grossly unfair.”

“It’s taxation without representation,” she added.

Michael Wardell, a Republican running for Missouri's seventh congressional seat agrees. He too is a former Marine and former expatriate who ran a business in Japan. He has vowed to go to Congress fighting this form of taxation without representation. He finds the practice unfair, since these Americans aren't represented in Congress, nor to they benefit from roads, schools, and other expenditures their taxes are confiscated for.

And so it is. America once home of the free has not become home of the overtaxed and an oppressive government. Because of it, the once proud moniker of being American is now looked upon in a different light. The sad thing is, there are more taxes coming.