Quote:
Originally Posted by V_RocKs
Wrong... When you leave the US solely for tax purposes the US still views you as a US citizen. This is why Bill Gates and every other American billionaire doesn't just leave... if they leave they still owe taxes.
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You are correct. But it's not so cut and dry.
1) They can still tax you for up to 10 years IF they believe you left the USA to avoid taxes. By "left" I don't mean simply move out, I mean you renounce your citizenship. There is a difference. But simply moving out does not exempt you from taxes. The USA owns you.
2) Any of them could leave at any time. Just because they do doesn't mean they are doing it to avoid taxes. However, they would have to play the tax game very carefully to make sure the IRS doesn't believe that is why they are leaving.
3) Big boys like that already have tax structures in place anyway. For example, Warren Buffet pays much less tax than his secretary.
4) After you do move out of the USA and have stayed out for the set time, you get tax breaks. For millionaires it may not be so big but for the rest of us it is very nice.
I know a few millionaires who have left the USA and had not issues with the IRS. I think the people who stay simply want to stay. Lets face it, why leave if you are in the top 1%, are a mover and shaker, and can do what you want?