Cash Abroad Rises $206 Billion as Apple to IBM Avoid Tax

[davidpdx]

14. Actually the majority of the people giving up citizenship aren't the rich

They are regular expats that live overseas (most married to a foreigner) for many years. The media makes hay out of the "big fish" that are leaving the US giving the impression everyone that does it is rich and feels entitled.

The tax laws were changed (or rather more strictly enforced) requiring those overseas to report assets over a certain amount to catch these so called "big fish" at the expense of ordinary expats. Now I have no problem with the laws being enforced. Those people should pay taxes.

The issue is that it has snared people who make a hell of a lot less. The threshold is low, even low enough that I may face it at some point in the future (my income would put me in the middle class in the US). It requires banks in foreign countries to report information about Americans to the IRS. We now are required to do additional paperwork that is complex and costly. If any of the information is wrong, even in simple error it could mean thousands of dollars in fines.

As an American living in Korea I am not required to pay taxes as Korea has a tax treaty with the US preventing double taxation.

It's not all about the fatcats.