Tax Exiles Flee America
The U.S. government is driving some of its most productive citizens abroad. The only beneficiaries are countries such as Singapore and Switzerland, which offer sanctuary to Americans fleeing avaricious Uncle Sam.
Tax flight is not an option for most people. We don’t earn enough to switch countries. However, the rich have more choices internationally. And increasingly they’re saying “sayonara” to these shores.
So are big companies. When combined with average state taxes, the United States has the world’s highest corporate tax rate. The United States is one of the few countries to use worldwide corporate taxation—claiming a cut of money earned everywhere, no matter how little a connection it has to this country.
America once was a land of opportunity. As it loses that distinction more people are tempted to go elsewhere. Instead of seeking to punish those who desire to move, policymakers should change the punitive policies that are pushing people abroad. If America’s rulers do not reform, they risk a brain drain the likes of which America has never seen.
Editor's Note: No other country in the developed world imposes and effectively enforces as many burdens on its citizen abroad (and those that would do business with them) as does the US government. See this article for more details.