An American Canadian writes a letter to President Obama

[riverbendviewgal]

and sends a copy to Forbes.
http://www.forbes.com/sites/robertwood/2014/08/15/dear-mr-president-why-im-leaving-america/?utm_source=followingimmediate&utm_medium=email&utm_campaign=20140815

Dear Mr. President, Why I'm Leaving America
I received a copy of this letter, and think it is worth reproducing in full:

“Dear Mr. President,

I am writing with a heavy heart as I, my husband, and our daughter are all seriously contemplating giving up our U.S. citizenship. We are doing this not to avoid paying U.S. taxes but because we strongly object to a system that is blatantly discriminatory and unfair to law-abiding Americans living outside the country. In addition, it has become too expensive, too difficult, and frankly, too frightening, to try to comply with all of the tax filing requirements that now apply to citizens living abroad.

My husband is 70 years old and I am 69. I was born in St. Louis, my husband in Denver, and our daughter in Toronto. When my husband graduated with a PhD in history from the University of Pennsylvania, and I with a law degree from Villanova, both in 1971, he received a job offer to teach U.S. history to Canadian university students. I began teaching law at the same university. We never expected to stay in Canada but, as you know, life is often unpredictable and we have now happily lived here for 43 years. I retired many years ago and my husband more recently.

[DonCoquixote]

1. In other words

"Mr. president, we want to be able to be called Americans, yet have the ability to squirrel away tax money."

[riverbendviewgal]

3. you did not read the article

These people are dual citizens and HAVE filed their U S tax returns continuously for decades and have not stopped. They are not tax cheaters. Read what they are saying. Quote them and respond to these quotes what you do not like. Other than usual anti americans abroad chant.

I am heartened that There almost 300 views on this so far. Even if no recs it does not matter. What matters that people read this. It was printed in an American esteemed magazine by a very well known man.

I filed my U S tax returns too when I emigrated. The last year I filed a US return was the year I became a Canadian. I am no longer an American citizen. I have my CLN. I am just a Canadian citizen.
One year I received $2000 US tax refund. I sent it back immediately as I never worked in the USA since emigrating to Canada. The IRS never said thank you for returning it or that they had made a mistake. LOL.

There are over 7 million Americans living abroad. Most permanently and not at all rich. I am a widow, living on a blue collar pension. My late husband and I would borrow money for RRSPs, pay the loans in a year and then do it again. Canada has higher income taxes, and sales taxes but we do have benefits we will not give up. Those high Canadian taxes are worth it.

Read the article and disect and discuss what you disaree with. BTW I not a Obama hater. I defend him much up here.

The USA would be in better economic shape if they has RBT.

[DonCoquixote]

5. OK, let me ask you this.

and I never said you were not a liberal, I have read you and liked you, which is why I am also passionate about this issue.

What is to stop Donald Trump and his lik from buying up Canadian property, building a house and maybe buying a few small buisnesses , and saying "I am canadian, ya cannot touch me!"

To be fair, I am not in favor of the irs. If I had my druthers, there would a be UN tax agency that had authority, ala interpol, to get tax cheats, but then again, it's not like the Swiss would sign on for that, even if we put the agency in Zurich.

If there is something to stop the aforementioned scenario, by all means say so. Before Harper, I would not have even thought of this, but I can see Harper doing this to lure in exactly the same sort of a**holes that would give him a power base.

[riverbendviewgal]

6. ok

Did you read packman? Typical response which indicates he did not read the link.

Canada's taxes are higher than the US. There are not that many loopholes like the USA has.

I can not imagine Donald Trump wanting to be a Canadian citizen. He would have to pay the high Canadian tax He would have to go through the very costly horrors of US exit tax to give up his US citizenship or if he opts to be dual he would reported to the IRS by Canadian banks what he has in them. . He could pack his money in trunks if he did not want that but he would risk being arrested if did not file US taxes when he crosses the US border.He could opt for another country in the world and pay less taxes. Canada is not a tax haven. You know The USA is a tax haven with many hiding money in Delaware and Wyoming .

Dont you think the very rich can dodge taxes anyway they want?. Look at Romney. they can afford to pay people to help them do this for them.

Little people can not do that.

Harper has so many problems now. Many of his laws have been challenged in Canada's Supreme court and been struck down. He is a loser and knows it. The word up here is to vote strategically in 2015, ABC. Anyone but Conservative. His corruption is being exposed everyday.

The US is the only country in the world that has Citizen based taxation, besides Eritrea. The rest of the world is Resident based taxation. This is true freedom and also encourages commerce, real capitalism. The IRS treats Americans abroad like criminals. It is so sad when 99.9 % are not tax cheaters. Most dhocked they hav1e to file US taxes when living in outside of USA.
I do NOT remember being taught about Citizen based taxation in history class in my US high school. my neighbor an move to UK lie there with a Visa for a years. He would not pay taxes to Canada while living in UK. He would pay taxes to UK. He can return to live in Canada or stay in the UK if the UK grants that. He would not be thought as not patriotic.

Thanks for a fair and sane exchange of dialogue.

Now I must watch House of Cards. Excellent show. I can believe it is not fiction, sadly.

[DonCoquixote]

7. this was respectful

but oif I may bring up a point.

"He would have to pay the high Canadian tax He would have to go through the very costly horrors of US exit tax to give up his US citizenship or if he opts to be dual he would reported to the IRS by Canadian banks what he has in them."

Well, if the chan ge you spoke about was done, would he NOT have that problem, or have less of it? I know there are tax havens, but very few of them in countries that are close to the US.

" This is true freedom and also encourages commerce, real capitalism. "

How? By allowing people to keep their money in one country and influence another?

[riverbendviewgal]

8. influence?

I Would say corporations can influence, not so much average individuals.I am discussing average ordinary people who live outside of the USA. These people are not millionairs. The people I know that are American persons make an average of 40 - 50k or much less that pay their taxes in the country they live and most are citizens of. I am talking Cdn dollars in my neck of the woods.


This tax law should be applied to Americans who live in the homeland and have their money hidden in the Caymans or Switzerland.
American Abroad can be great Ambassadors and promote American products. But now in Europe and elsewhere banks are closing their accounts and mortgages. Some are losing their jobs because a company overseas will not want them signing financial statments.
They will hire other people from other countries, if not their own. This restricts Americans to go abroad to live. It is like the USA is putting a wall on its borders to keep its citizens in.

Americans abroad do not have the benefits of homelanders. Filing US taxes can cost $1 k or more when owning zero to the US. Also what is in their bank accounts must be reported. These are local banks. Homelanders do not have to report what is in their bank accounts.
One can not file themselves but have an IRS approved tax accountant. The tax compliance industry is making big bucks.

You can find a wealth of information on all of this is you look up Isaac Brock Society. It is very extensive. Good night.

[DonCoquixote]

2. simply put

What is to stop Billionaires from getting am apartment in Toronto, then saying "You cannot get my tex info?" That is why America taxes dual cistinzes this way, because the Mexican and Canadian borders would be full of Tax cheats that get all the benefits of being an American, but NONE of the responsibilities.

[packman]

4. You mean like corporations

who are American "citizens" according to the SCOTUS , yet have overseas domiciles? I have no sympathy for this American wanting exemptions. Either return to the US, give up your US citizenship, or pay for the privilege of being a US citizen. It is obvious that you have no intention of leaving Canada, so do the right thing.

Frankly, I would like you to expand on :

we strongly object to a system that is blatantly discriminatory and unfair to law-abiding Americans living outside the country. In addition, it has become too expensive, too difficult, and frankly, too frightening, to try to comply with all of the tax filing requirements that now apply to citizens living abroad.

"Discriminatory?" How? It was your choice. "Unfair" - because you HAVE TO file? " Too exensive, too difficult, too frightening (are you under some sort of threat)" - You are aware that every US citizen feels this way around April 15 each year, aren't you?

[jambo101]

9. When do you become a Canadian?

I have a similar experience as the letter writer, i came to Canada 45 years ago for an employment opportunity and ended up staying, after some time i became a Canadian citizen. I now feel more like a Canadian citizen than an American and have no aspirations on returning to the USA.
I dont understand why after 43 years in Canada the letter writer is still obsessing about the USA, after 43 years you're probably more Canadian than American.

[riverbendviewgal]

10. I realized I wanted Canadian citizenship

Two decades after being a landed resident. I wanted to vote and realized I had no intention of returning to live. I knew I loved Canada and what its values were. There are differences like one payer health care . We had good union jobs and good pensions. I became a citizen before 1995. The US law then was when those Americans who became citizens of another country they relinquished their US citizenship. The law changed in 1995.

Many don't know this, including US Custom border agents. I was told one time going across the border with my Canadian passport that there was no such thing as dual and I was only an American. I did not argue. (Not a good idea, eh?)

I think I became Canadian in my heart when I stepped off the bus that brought me to Canada that first day. It was very different and yet very welcome. I felt I was Home. I would have become a Cdn citizen sooner but my husband was a procrastinator. Finally I made the appointments and we went and did it.

I know some Americans living here for over 50 years and still are not Canadian citizens. They have their reasons as too expensive to become one. They are widows living only on Canada pension and old age security. Not rich American expats for sure.

I think the letter writer liked being dual. Now filing US taxes is very expensive to pay IRS authorized tax compliant agents to file digitized US income tax forms. To exit now for them is to renounce. $450 plus exit tax which is a percentage of all your assets, your house at current value, your total pensions and RRSPS and all your bank accounts. That can be very be costly for these people. They have been complying filing US taxes so there are no penalties for not filing.
As would be the case if they never had filed. There are many that never were aware they had too.

More American expats are renouncing /relinquishing now than ever. It is said 1000 in the first quarter this year which is a record. Some members of Congress want to make it a law to keep those who give up their US citizenship from ever entering the US again. Is that a good thing to do?

[riverbendviewgal]

11. 50,000 views on this Forbes post

That is amazing. I wonder if President Obama will answer the letter writer.