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Original: http://www.mainstreet.com/theres-law-takes-away-money-if-you-leave-us-citizenship

There's A Law That Takes Away Money If You Leave U.S. Citizenship?
By Terry Savage (06/30/08)

A lot of people probably can't understand why someone would voluntarily give up American citizenship -- but if someone wanted to do that, they'd now incur financial penalties for it.

Congress just passed a new law that will stop your capital -- or at least a good portion of it -- at the border, should you decide not to be a U.S. citizen anymore. Is it, perhaps, in preparation for the possibility that Americans might rebel at the debt and taxes incurred by their government by leaving for lower-tax locales?

You probably didn't notice this little provision inserted into the Heroes Act of 2008, passed by Congress on June 17. The headlines in the press release about the law were about the increased benefits for veterans and families of deceased military.

But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act, which states that anyone voluntarily giving up his or her citizenship will be taxed on all of his assets as if he or she had sold them -- paying capital gains on assets that have increased in value, even though they have not been sold.

That's right. While everyone in the media is focused on keeping aliens out of America, Congress has voted to lock its citizens - or at least a good portion of their assets -- into America! Maybe they're thinking that patriotism won't be enough to keep the smart money from recognizing the coming increases in the tax burden.

Patriotism and Debt

We expect our elected leaders to be patriotic, to wear flap pins on their lapels? But how patriotic is it for our elected officials of both parties to drag our country into debt?

This year the Federal budget deficit will be a record $400 billion. That astonishing number will be added to our existing $9 trillion national debt. It's money that our government spends in excess of what it collects in taxes.

[For an instant update on our National Debt go to the moving numbers at www.Truthin2008.org -- a nonpartisan watchdog group on the national debt.]

Government officials say they're shocked at the record number of American consumers who are filing for bankruptcy. Yet those same politicians are spending America into an effective bankruptcy -- building a burden of current debt and promises of future debt that can never be repaid. Now, how patriotic is that?

Patriotism and Taxes

Do you consider it your patriotic duty to pay your taxes? Do you feel unpatriotic because you spend some time trying to figure out how to reduce your tax burden, by maximizing deductions whenever possible?

If that's not unpatriotic for you, is it unpatriotic for wealthy people, or corporations, to try to reduce their tax burden? Where do you draw the line? Perhaps it's most unpatriotic for our elected officials to construct a tax system that doles out benefits to special interest groups, pitting one group of Americans against another.

What's really unpatriotic, in my opinion, is trying to divide Americans through the politics of envy. Our country has moved forward because of our optimism and our belief that any American can build a better financial future. It has been our nature to honor those who have been successful, and seek to emulate them, not to destroy them because they have more assets or income.

Of course, that presupposes that the successful people accept their patriotic responsibility to give back to the society that made their success possible. And the facts show that Americans are the most charitable and generous people on the planet.

Think of Warren Buffett and Bill Gates, literally giving away their fortunes to help humanity. Or think of the people who filled sandbags along the Mississippi this month to save the homes of strangers.

When a government encourages the best in its citizens, by its policies and its example, patriotic citizens rise to the occasion. And when a government burdens its citizens, it inspires dissent and departures.

The Beatles famously left Britain, and Bjorn Borg left Sweden, when their governments raised taxes to such high levels that even these national icons departed. Are American lawmakers preparing for that kind of scenario with this new law?

Now in America, you can love it, or leave it -- but you can't take it all with you. And that's the Savage Truth!
 

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lex it is nick named the loyalty penalty .
I don't know the official name ,but Washington has noticed a steep increase in Americans doing this.
The most popular destination was Iceland ,They are congregating around a small Mountain Town called Selfoss.
Another story you will not see in the News ,i read this on News Max.
This migration has increased more sense the Election Primary's ,and of course Washington cant understand why its happy Citizens would do such a foolish thing.
In researching this ,Iceland's Citizens can own Fire Arms ,as long as they pass a criminal Check through Interpol.
It is a once in a lifetime deal ,and their are no restrictions ,only a $10.00 Fee for each gun brought in.
Americans were sending all their Money to Banks there, then leaving , The US Government asked Iceland to intervene and they said NO.
now Iceland requires that you show proof that you will be a productive addition to its Citizenship ,and not a Bum.
This announcement ,,,speaking about Bums , Nancy Pelosi announced the same day this other was announced the Social Security , And Retirement 401k benefits ,IRA accounts ,and Trust accounts will be taxed as income subject to IRS guide lines.
The Reason ? To be put in an account to pay for the Medical Cost ,Patriotation , housing ,and expense to 30 Million Mexicans now living here Illegally.
Boy it just gets better every day .
 

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So what you do is move ex-patriate, but keep your citizenship until you have slowly moved your funds overseas. Then you can decide whether you keep it or let it go. For most who have retired there is no reason to give it up, but admittedly some do.

I know a guy and his wife who have done this so it can be done without financial pain. Just go slowly.
 

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I agree Mickey ,this is nothing new a lot of Americans have done it that way for years. Usually IRS problems they know are coming , people involved in fraud.
When i was trying to get some idea of the Country's where they are moving to ,i came across something very interesting.
Bush sits up there pushing the War ,passing laws that effect our rights , and saying things like we must stop the Terrorist before they can come here. Acting like all of this is a National emergency , a war to stop an enemy that would prey on Americans .
Standing alone ,ever vigilante to protect our shores.
Our Allies believed him for awhile ,but behind his back and ours they were talking about something that didn't add up to all of his talk ,and it was effecting them because they were involved with him on this.
Our Borders!!! Bush making citizens out of 20 Million illegals that he knows nothing about. Every time he is even questioned on this he avoids it ,or does something lame to look like he is on it.
In not treating the border problem with the same urgency as he does the war on Terror ,and being worried about Al Queda sneaking or getting into the heart land as he says.
Him and our Congress have allowed the worlds most dangerous organized Gang to infiltrate into even the smallest places and towns in this country ,MS13 .
Going by many names ,it is still the ring leader of most all our Mexican gangs ,and responsible for most of the crime in the west and south.
Our Allies see this as he is lieing ,or just stupid ,and is why Australia recently pulled out of Iraq. It is the reason the people of Spain elected this leftist like they did ,because the Spanish medias and representatives were the first to bring this up.
Bush is doing something these country's say if they were in our situation after 9,11 ,the Borders would have been closed immediately.
They now feel they can not take us seriously about 9,11 ,or the so called War on Terror.
And without coming right out and telling him to his face that he is full of shit ,they just pulled out and went home.
It does make sense , Gangs filled with Hispanics have been responsible for a string of convenience store murder / robbery's in
Our state lately ,and the ones caught are kids ,admitting they were making a name for themselves to get into the MS13.
One of my wife's cousins is one of the murdered last November ,and the Police told us this .
They dont just say this is a stick up give me the money ,they just walked in and cut her in half with a shot gun for no reason ,other than to get into the gang.
The police said its the MO ,of MS13 , Be Brutal , make people fear you. So you can see why i have a special interest in the Border Problem ,and reports like this hit home.
 

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The US is headed for earth shattering changes and Americans won't like it. The truth is the country is insolvent, basically bankrupt, the government knows it and is at the point of desperation and this is just proof of it. Watch the US dollar folks, it's doomed.
 

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The dollar isn't doomed. Not just yet.

The Fed needs to stop f#@*ing the economy to help a few greedy firms and get interest rates back to the 6-7% range. they also need toregulate the banking industry over here as the current loans processes are so badly setup and managed that foreign investors lack confidence in the US system. this causes them to put their money elsewhere.

We will go through two years of pain but exit with a stronger dollar and good capital influx.

Keeping these rates low is killing the dollar, contributing to oil price rises by reducing the dollar value and pushing investment into the Oil and comodities markets. This compounds the effect of a weak dollar by causing raw materials prices to rise as well.

FED, wake the F*%# up!
 

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Interest rates are just a small part of the equation. The dollar is doomed for many reasons, chiefly the current account deficit, the trade deficit and the massive national debt all of which will grow. Long term, entitlements and a never ending war will finish the dollar off. I expect to see it @ $50.00 on the USDX, this should pretty much wipe out the middle class.
 

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They are, but allied to a decent power strategy, common sence consumerism and the worm can turn. The problem is that the people strategizing the economy and the government do it in 4 year cycles.

There is something to be said for a monarchy/dictatorial government. Those leader expect to be in power for decades and thus they plan accordingly.
 

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You are right on ****. A correction for the overall good is in effect. Interest rates are at 6-7 for consumers and will be soon for discount borrowers. Housing will eventually stabilize and liquidity return. These economic times come and go in our system over and over, and each event is hailed as the worst ever yada yada yada. I've seen it time and again since the late 80's when I got out into the real world. Heck, in the 80's a 12% home loan was not unheard of. Heres what will happen; we will shit can the current idiots at the top, get some new idiots and you and I the average schmo will do the best we can as always. The great thing about our system even in these days is its flexibility. Thats our advantage over the Ruskies or the Chinese.
 

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I agree, but it is in a lot of trouble.

All economies have cycles, and the best that good management can attain is to extend the good times and shorten the bad. We're in a bad cycle right now, and it doesn't show any sign of letting up soon.

What we're experiencing is the natural byproduct of the unfettered greed that has resulted from massive deregulation of the financial markets. The mortgage crisis is not the only problem out there. Speculation in oil on unregulated markets is playing havoc with the world economy, and unregulated credit swaps have left some major financial institutions with a huge liability.

Put on your seatbelts, it's going to be a bumpy ride.

tk

The dollar isn't doomed. Not just yet.

The Fed needs to stop f#@*ing the economy to help a few greedy firms and get interest rates back to the 6-7% range. they also need toregulate the banking industry over here as the current loans processes are so badly setup and managed that foreign investors lack confidence in the US system. this causes them to put their money elsewhere.

We will go through two years of pain but exit with a stronger dollar and good capital influx.

Keeping these rates low is killing the dollar, contributing to oil price rises by reducing the dollar value and pushing investment into the Oil and comodities markets. This compounds the effect of a weak dollar by causing raw materials prices to rise as well.

FED, wake the F*%# up!
 

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Most of the time the Wall Street Journal points its finger at our entitlement system.
No one says that the poor or disabled shouldn't be cared for , But we cant have 40% of our population not working and the other 60% paying the Taxes we do.
Most of the working people are getting close to retirement ,and the kids of today for the large part don't want to work.

http://www.liveleak.com/view?i=7d0_1218898163

This is a good one ,he really has it right on target.
 
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