H.R. 6081 and Expatriates

[modestyblase]

http://www.democrats.senate.gov/dpc/dpc-new.cfm?doc_name=lb-110-2-86

  I'm disturbed by this...

From the summary:

The HEART Act would:

Revise tax rules on expatriation. American citizens and long-term U.S. residents are subject to tax on their worldwide income. Under current law, taxpayers can avoid taxes by renouncing their citizenship or terminating their residence. The Heart Act would tighten current law rules to ensure that certain high net-worth taxpayers cannot renounce their citizenship or terminate their residence in order to avoid U.S. taxes. Under this provision, high net-worth individuals would be treated as if they sold all of their property for its fair market value on the day before such individual expatriates or their residency would be terminated. The gain would be recognized to the extent that the aggregate gain recognized exceeds $600,000 (which will be adjusted for cost of living in the future).

[Lanya]

Looks like a good idea to me. 

[BT]

The Heart Act would tighten current law rules to ensure that certain high net-worth taxpayers cannot renounce their citizenship or terminate their residence in order to avoid U.S. taxes.

If it is a good idea why limit it to high net worth tax-payers?

[Plane]

That money doesn't belong to a person at the sufferance of the government .

[Xavier_Onassis]

If a person lives n a different country and has all his money in that country, becomes a citizen of that country, and refuses to pay the US taxes, there is nothing they can do unless and until he returns to the US. So this becmes a tax on whether an expatriate chooses to return home for a visit or not.

It doesn't sound like this is likely to raise much revenue for the US.

Writers and artists can live in Ireland tax-free.

[modestyblase]

I hope Bush vetoes this.

BT touches on the issue-taxing the wealthy-and I doubt Bush *will* veto it since its "for the troops!"

"Under this provision, high net-worth individuals would be treated as if they sold all of their property for its fair market value on the day before such individual expatriates or their residency would be terminated."

I hope someone sues. This is a property rights violation. I'm also not keen on tightening restrictions on those wishing to renounce their citizenship-how oh how is that just?

[Plane]

  This reminds me , a brace of prominent persons promised to vacate the US if Bush won the Presidency.

   How many followed through?

    This law would only affect a small number , does Mexico or Russia have an equivelent law?