April 13, 2013
The Pros of Wealthy People Moving to Other Countries.
“As someone who has lived offshore for an extended period, I can assure you that the first thing that you learn when you move offshore, is that there is a huge tax break for living offshore ($70,000 in 1994 and over $91,000 in 2010). Therefore, if you live offshore and file your tax return, you will certainly take that exemption (Graver, 2010).” As we see by this quote, it is a benefit for wealthy people to move out of this country, even if it is just offshore. The amount of tax money they save is significant.
“Over the years, I have interviewed many American expats about their reasons for leaving. Until six years ago, the number one reason for leaving, cited by EVERY expat that I talked with, had something to do with the IRS - not the Income Tax, but the IRS. When I asked them to be more specific, they cited IRS abuses and witch hunts, lack of privacy in their financial dealings, hundreds of thousands of pages of incomprehensible and contradictory laws and regulations, from which the IRS picks and chooses and let us not forget, the Health Insurance Portability & Accountability Act of 1996 and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, which are nothing more than covert tools of the IRS(Graver, 2010).” In this quote, Graver shows us that another benefit of wealthy people leaving the U.S. is that they no longer have to deal with the IRS.
To conclude then, some of the pros of wealthy people moving are. The tax breaks are significant, and they no longer have to deal with institutions like the IRS.
Graver, J. (2010). Tick - Tick - Tick The Economy Bomb. Retrieved from actionamerica.org: http://actionamerica.org/taxecon/ticktick.shtml