Americans give up citizenship because of high taxes in the middle of the epidemic

Americans give up citizenship because of high taxes in the middle of the epidemic


A report by Bambridge Accountants New York published in early August found that more than 5,800 Americans gave up their citizenship in the first half of 2020. The number of people giving up US citizenship in the first 6 months of 2020 was more than doubled compared to the figure for the whole year 2019. This is a sudden increase, an increase of 1,210% compared to the last 6 months of 2019.

The Americans are committed to high quality service
Americans want to give up citizenship at a record high. Artwork: Reuters

Last year, 2,072 citizens were willing to give up their passports in the world’s No. 1 economy.

The wave of giving up American citizenship exploded in the first quarter of 2020, the company said.

Bambridge Accountants New York is an American expat tax compliance company. The report shows the record number of Americans wanting to give up their citizenship.

One of the reasons given by this company is the large tax that US citizens have to pay, especially in the context of the COVID-19 pandemic raging in the country.

Alistair Bambridge, a partner of the accounting firm based in New York, commented that there has been a big change in the US due to the outbreak and spread of the virus that causes COVID-19.

“Expats in the US are ready to give up their US citizenship. The tax figures have plummeted since 2017.

In our experience, the number of foreigners giving up citizenship in the US is increasing due to the fact that the current pandemic has given individuals time to calculate their contributions and make decisions. in the current political environment, as well as the difficult economic climate affected by COVID-19. The annual US tax report is too big to pay, “the company said.

By contrast, the filing fee for a naturalization application to enter the United States has skyrocketed. One of the fees skyrocketed to 80% in early August, according to US Citizenship and Immigration Services (UCIS) data.

Under the revised fee, new applicants will be charged $ 520 more than before. UCIS explained the new increase was to cover the agency’s operating costs, arguing that this was the increase needed to make up for the budget shortfall.

The United States is going through difficult times due to the COVID-19 pandemic. The US recorded more than 5 million infections and more than 167,000 deaths.

On August 11, Reuters news agency showed that the number of deaths from COVID-19 in the US fell 16%, to about 7,200 last week. This is the first time the number of deaths in the country has decreased after four consecutive weeks of increase, according to Channel News Asia.

The majority of new cases last week decreased in hot spots. In particular, the number of COVID-19 infections in the state of Arizona fell more than 48% last week, and on August 9, the state announced less than 1,000 new cases since June 29.

Nationwide, the proportion of cases tested positive for the SARS-CoV-2 virus was stable at 8%. Mississippi and Texas have the highest rate in the country with 21%.

Only 15 states have reported COVID-19 incidence below 5%. However, the World Health Organization said that this data is not accurate because there may be many cases in the community but have not been discovered.

Community prevalence rates in Florida, California and Tennessee are still high. However, the number of new infections in these states has decreased compared to previous weeks.

On August 11, the US government reached an agreement worth $ 1.525 billion with Moderna Company to produce and supply 100 million doses of vaccine developed by the company as soon as it is approved for circulation.

Hai Lam

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