Chinanews.com, February 12th According to the comprehensive report of the American Overseas Chinese News Network, 2013 is a landmark year for “Farewell to the United States”. The United States has always attracted immigrants from all over the world. However, at present, a record number of US citizens and permanent residents are giving up their nationality or residency, and the trend of emigration continues to increase. For the Chinese, American citizenship has now become a siege. The people outside want to go in, but the people inside think about it.
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& The number of long-time residents of Americans or returning green cards soared to 2,999, a record high. This figure has increased by 221% in 2012 for 932 people, an increase of at least 68% from the previous record of 2011.
Andrews Mitchel, an international tax attorney who tracks overseas data for a long time, believes that “escape” continues to soar, largely because the US government is preparing to enforce stricter asset reporting requirements. This will increase tax revenues, cope with tight financial conditions, and thus increase the burden of compliance with US tax laws; and partly because of the change in the nationality policy since 2008.
The motivation of most expatriates is mainly for family or convenience, or to have their own life elsewhere, and may no longer require a US passport, not for tax reasons. Although complex and expensive taxes may affect decisions in this area, they are usually not the only reason.
Tax columnist Robert Wood pointed out that the US global tax and information disclosure laws are completely “squeezing”. For Americans living and working abroad, they must file and pay taxes to the local institution they live in, while still continuing to pay taxes to the US government. “More and more Americans overseas are aware that they are obligated to file tax returns with the US. “The US tax lawyer Matthew Ledvina, who works in Zurich, Switzerland, said, “Once this is known, they will decide to abandon US citizenship. ”
The number of people who have abandoned US citizenship or green cards in the past four years is far more than the sum of the previous 12 years. To date, many million and billionaires have given up their US citizenship, including the late founder of the Carnival Cruises company, Arison; former Ford Motor Company director Dingman; "Rock Queen" Tina · Turner; social networking site “Facebook” & co-founder Savelin and so on.
Permanent departure from the United States will also be required to pay special taxes such as exit taxes, so the decision to emigrate should not be made lightly. But with or without taxes, this is a big step forward. At present, more and more people around the world are discussing this “great leap”.
American citizenship is less attractive to Chinese people
For the Chinese rich, American citizenship has now become a siege, and people outside want to go inside. The people think of it. This was almost unimaginable a decade ago, when immigrating to the United States was the ultimate dream of many Chinese rich people, but now the situation is very different.
“The Overseas Chinese News” "a glimpse" column has analyzed that more and more American citizens living abroad have found that the cost of maintaining American identity is getting higher and higher, and the trouble is getting more and more more. After the introduction of the new tax law, it is difficult for Americans living in their home countries to deal with financial affairs overseas, let alone Americans who have lived overseas for a long time.
Most foreign immigrants living in the United States want to join the United States. American citizens living in overseas countries and a few wealthy Americans have abandoned Americans because they are unwilling to pay taxes. A considerable part of these two types of people are Chinese. The naturalization and declassification of Chinese people shows that on the one hand, the attraction of American nationality to ordinary immigrants, on the other hand, it shows that under the circumstances of poor economy and heavy taxation, American nationality has lost its appeal to a few overseas Chinese.
A Chinese businessman doing business in the United States also fell into distress: shortly after leaving China to return to the United States, a friend from Beijing wrote to him to urge him to return to China. “Go back to China,” she said, “The United States is no longer a place to find a job. We have heard that the United States is now like a third world country. ”
According to the American Civil Society "Citizenship Coordination Committee", in 2012, in San Diego, eligible to become a US citizen but did not file more than 150,000 applicants. According to data released by the US Census Bureau, one-third of the 1 million Chinese living in the United States are not US citizens. There are two possible reasons why Chinese residents decide not to become Americans: first, some people do not speak English well enough to pass the citizenship test; second, many Chinese tend to retain their nationality. For example, Ms. Liu, a Chinese American living in China, said that her American citizenship has become less and less advantageous in the past few years because she has many businesses transferred to China.
However, for Americans who have lived overseas for a long time and wealthy people living in the United States, it is not easy to get rid of the family. The Americans who intend to quit the family first prove that they have been in the past five years. Income tax has been paid in accordance with the regulations. If there has been a tax evasion, these people will be required to pay an additional 8 years of tax and interest, plus a fine, in accordance with the new voluntary reporting scheme.The amount of the fine is 25% of the maximum account balance of the penalty person in the past 8 years. Moreover, according to the Reed Amendment, citizens who have been exempted from taxation as their main purpose may not join US citizenship again. In addition, within 10 years after the renunciation of citizenship, as long as the residence in the United States exceeds 30 days in a year, it is still a necessary obligation to pay income tax to the US government.
Responsible Editor: Liu Yang