Citizenship and taxes

Paul R. Organ ()
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Paul R. Organ: U.S. Department of the Treasury

International Tax and Public Finance, 2024, vol. 31, issue 2, No 4, 404-453

Abstract: Abstract The U.S. tax system applies to its citizens’ worldwide incomes and estates, whether those citizens live in the U.S. or abroad. Fully escaping the U.S. tax system requires renouncing U.S. citizenship, and in recent years a growing number have done so. Using administrative tax microdata, I provide new descriptive information about the population of individuals who have renounced U.S. citizenship. The typical renouncer had long lived abroad, was slightly wealthier than the typical American, and reported no or little net U.S. tax liability prior to their renunciation. Combined with information on the foreign jurisdictions where renouncers reside, the evidence suggests that most recent renunciations are a result of increasing compliance costs of maintaining U.S. citizenship while living abroad, and not a response to U.S. tax liability.

Keywords: Migration; Mobility; Tax compliance; Tax administration; Tax avoidance (search for similar items in EconPapers)
JEL-codes: F22 H2 H24 H26 K34 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10797-022-09767-5

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