Got money and want to leave the US? Prepare to Pay!

There is no doubt right now that the US is having serious debt problem. According to the US national debt clock as of July 5th 2008, the US stands to be in $9.45 trillion in debt. With an estimated population of about 300 million people, that's $31,000 per person. In other words, a family of4 carries a debt of $120,000. Imagine trying to pay off that kind of debt? For the average American I think that would be close to impossible.

There are many people in the US whom are dismayed with the current state of affairs, particularly with the currently rising debt and deteriorating economy (not to mention the low support with the current administration having an approval rate of about 27%). Suffice to say, the US as it stands right now is incredibly screwed and even if the general public didn't support the actions of the administration, the US government's debt and the economic catastrophe they cause is still the responsible of the average American citizen.

The question to ask is if this is fair for the average person to pick up the tab for the debt they didn't want or responsible for in the first place. The answer for most people is a resounding 'No.' So even if the current Bush administration draws to a cataclysmic end, the legacy of it's debt will continue for atleast a generation or few. For those that don't want anything more to do with this debt, there is a way out and that way is through renouncing their US citizenship.

The most common method of renouncing a US citizenship is simply by leaving the country and writing out the appropriate forms at an US embassy abroad. But for the most average US citizen, most people do not have any experience living abroad nor are most people readily in a position to take up a foreign citizenship. The people most likely able to do this are the most affluent, who do a lot of traveling or working abroad (this assumes that they are skilled to be in demand in an international market).

The US government is realizing through their poor management is that rich people want to leave, taking their money to greener pastures. So, just recently, the US has instigated a special tax (called HEART) to hit people emigrating out of the US (for both foreigners and US citizens) taking bringing out more than $600,000 in wealth (while the first $600k being tax free, the rest being taxed). If you lived debt free, sold your house and all your belongings (total assets more than $600k), be prepared to pay this new "exit fee" out of the US.

So if you became rich in the US, don't expect to get out with all of your wealth intact. If you don't have much money and don't want anything to do with the ballooning US debt, get out while you still can.