Heavy tax in the United States has been one of the major reasons one should give becoming a citizen much thought.
While the country might be booming with opportunities and ways to make wealth become more accessible compared to other Western countries, the cost of living in the U.S is also on the high end.
The billionaire co-founder of Facebook has made a very strong decision just before Facebook’s IPO, which is to give up his American citizenship.
Severin adds to the increasing number of people who have decided to drop the “American” title.
Compared to year 2008 when the number of people reported to have dropped their U.S citizenry was 235, last year was a whopping 1780, says government report.
The tax rate for top U.S. earners will increase by 4.6 percent moving up from 35 percent to 39.6 percent next year, rates on capital gains and dividends are scheduled to take the same step should the Congress not block the increase.
Some say U.S is on the losing side, if important people are renouncing their citizenship.
“It’s a loss for the U.S. to have many well-educated people who actually have a great deal of affection for America make that choice. The tax cost, complexity and the traps for the unwary are among the considerations,” said Richard Weisman, an attorney for Hong Kong Baker & McKenzie.
You can read more of the story on Yahoo!