The great Margaret Thatcher once said that we need an incentive economy to produce growth, where the great achievers are allowed to achieve great things without the threat of punishment. Sadly, we now live in a redistributionist economy where anyone that is successful and achieves great wealth will quickly have much of that wealth confiscated and chopped up among those of greater need. Don’t call them Marxists or Communists, because they don’t like those terms — but if it walks like a duck, and talks like a duck….
The New York Post published an article last year which is becoming very relevant today, titled, “US citizens leaving the country to avoid stiff tax bills” where they mention that thousands of high net-worth individuals were fleeing the USA and renouncing their citizenship as of June/2011 in anticipation of an Obama victory, and soaring tax rates here in the United States.
Many of us have considered leaving the country, especially if we’re in businesses that could be run from anywhere. Some of us have even promised to leave the country if President Obama was re-elected, and now that sad reality has come to fruition. Unfortunately, there is a catch for anyone considering renouncing their US Citizenship in order to avoid taxes – “a citizen must buy that unique freedom with a a one-time exit tax of 15 percent on the fair-market value of all assets — including real estate, securities, businesses and personal belongings.” A price that some may consider too high to pay.
The article does mention a rather interesting loophole to staying within technical US borders, however. There does exist an intriguing way to still get off the mainland, live under the US flag, and still avoid most taxes. “The US possessions in the Caribbean — St. Thomas, St. John and St. Croix — give a 90 percent tax credit to US citizens living there at least 183 days a year, resulting in an effective tax rate of just 3.5 percent, he said.”
According to the article, by taking advantage of the tax advantages of living in St. Thomas, St. John, or St. Croix — one could run an online business, or any sort of job that allows someone to work remotely while carefully side stepping 90% of their federal income tax obligation. All of the sudden, a very attractive option appears for many wealthy conservatives who would like to escape an oppressive leftist regime that looks to penalize them for their success.