US citizenship is arguably more of a liability than asset these days. 43% cap gains tax and that's on nominal gains. With the Fed determined to raise inflation to 2%, the real effective capital gains tax rate on a portfolio that generates 6% would be 76%.
The US is one of the only countries in the world that taxes by citizenship rather than residence & source. If you live & work overseas you still pay US taxes. And if you want to renounce your citizenship there are exit taxes and they ping you for another circa 10yrs I believe.
I would not accept US citizenship if you paid me US$5m to accept it.
People need to have the right & freedom to leave a country if they are not getting value for money, otherwise there is nothing to stop rates going forever higher. It's outrageous that the cost of govt admin & waste can get so high they will take more than 50% of your income.
This would never happen in a competitive market where countries and states need to compete to attract citizens. The lack of competition allows a monopoly state to bloat & fleece it's citizenry to fund all manner of largesse, waste, political favours, and other handouts.
I am willing to pay up to about 25%. I don't mind a little bit of redistribution & contributing to public services. But more than 25% is overreach and I will leave the country if politicians try to take more.
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