Chapter 6: Dispelling the Myth of the Wealthy American Expat, or Are Americans Free to Live Outside the United States?

The United States is unique in how it imposes income taxation on their citizens living overseas, as if they lived in the United States. Neither US residents (regardless of citizenship) nor non-US citizens residing overseas are subjected to such a penalising system. The system is justified by the stigmatisation of overseas Americans as necessarily wealthy and whose purpose in living overseas is to avoid US taxation.

Because of penalising US taxation, overseas Americans struggle with ordinary activities required to sustain modern life. The activities include owning a home, holding a bank account, investing and planning for retirement, operating a business, holding certain jobs, and pursuing community service opportunities. The situation causes many to feel that they have no choice but to renounce US citizenship.

Ultimately, the question must be asked: Are Americans free to live outside the United States?