fne8w2ahEx-Americans are suing America to get back some of the money they paid to renounce their citizenship
The exit tax is pretty insane too.
Basically if you earn a certain amount or have a high enough net worth, you must pay a tax on all of your assets as if you were selling everything you owned. You are charged this amount even if you are not selling anything.
This is the only wealth tax in America as far as I understand it.
It’s there for a reason tho…
If it wasn’t, the wealthy would take their wealth and fuck off to somewhere it was worth more.
They’re fine to do that, but the US is still going to want it’s cut, you’re still paying federal taxes every year because you’re a US Citizen.
Rich people hate paying taxes. So they just renounced citizenship on the way out and took all their wealth with them.
But like you said, it’s based on how much wealth you own so for normal people, it’s not a big deal.
It’s weird seeing people against it
It’s like the Inheritance tax. It’s basically meaningless to the poor, but it sounds bad so the GOP uses it to scare their base. However the targets of the tax are primarily the handful of rich capitalist bastards who have a harder time bribing lobbying their way out of it.
The exit tax starts at $120k. That’s upper middle, not the “rich capitalist bastard” class. And of course it’s also an income tax so it does jack shit to tax actual wealthy people.
Totally agree. Income isn’t wealth and people are clinging onto 1970s implications of “millionaire” when in 2023 having a million net worth doesn’t even allow you to retire and might just mean you own a house and have little other savings. Similarly “six figures” income meant a lot 30-40 years ago, but inflation eroded that to middle class in the 21st century.