As taxes continue to rise in the United States, the upcoming expiration of the Bush Administration tax cuts and a proposed 55 percent tax increase on the horizon for the wealthy, an increasing amount of the United States’ wealthier population is disillusioned. They are deciding to jump ship at record numbers. One of the co-founders of Facebook, Eduardo Saverin, also made the same choice recently.

“High-net-worth individuals are making the decision that having a US passport just isn’t worth the cost anymore. They’re able to do what they do from any place in the world, and they’re choosing to do it from places with much lower tax rates,” Said Duggan Bertsch lawyer Jim Duggan.

“Some are philosophically disgusted at the course our country is taking, in all kinds of ways. They’re making a strong protest of enough is enough. But largely, it’s an economic decision,” added Mr. Duggan.

3805 United States citizens renounced their citizenship last year in 2011. Immigration officials are projecting that as many as 8000 United States nationals in 2012 will choose that the United States Government is dipping too deeply into their pockets to retain their status as US citizens.

Many of the world’s tax friendly nations will offer expedited citizenship to Americans who would potentially channel large amounts of money into and through their economy. Some of the most popular tax haven destinations are: Costa Rica, Cayman Islands, Australia, Norway, Antigua, Guernsey and Singapore. For a cool $1 million USD, you can have an Austrian passport.

Renouncing your “American Nationality” is not free for these wealthy individuals. In fact, it is quite costly. United States citizens who wish to renounce their citizenship for economic reasons are subject to a 15% net worth exit tax. In other words, a fair market evaluation is made of all of the individual’s securities, real estate, and belongings, both personal and business related.

For some, it might be better to opt for the 90% tax credit received while living for half the year in the US territories of St. Thomas, St. Croix and St. John. If a person lives for 6 months out of the year in the US possessed Caribbean, they can effectively retain their citizenship, while paying only around 3.5% in taxes.

Source: news.com.au