The Taxpayer's Share

Taxes have been in the news of late even more than usual, and not only in America. France's new socialist president has proposed a 75 percent top tax rate, causing the investor class to seek sunnier tax climes than dreary old Gaul. Actor Gerard Depardieu took up residence in Belgium, while former French President Sarkozy plans to move to jolly old England. Citizens of the United States, however, can't just absquatulate to some foreign country to avoid taxes. You see, the U.S. is the only major nation that taxes its non-resident citizens on income they earn abroad (see chart). Consequently, there's been a rash of Americans lately who have been renouncing their citizenship just to escape high tax rates. One notable ex-citizen is Eduardo Saverin, a big shot at Facebook, who recently became a citizen of Singapore. (If you're thinking about defecting, read this article at the Wall Street Journal by Laura Saunders.) What these instances of "voting with your feet" demonstrate is that tax...(Read Full Article)