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U.S. Exit Tax - SI
U.S. EXIT TAXES
from Strategic Investment's Intelligence bulletins - November 15, 1995
824 E. Baltimore St.
Baltimre, MD 21202-4799
Published monthly for U.S. residents at US$109 per year.
Republicans add barbed wire to Clinton's "Berlin Wall." SI accurately
forecasted the coming of the "exit" tax proposed by the Clinton Admin-
istration earlier this year. Now Senate Republicans have passed an exit
tax that is even more punitive than that proposed by Clinton. Section
12441(b) of the Balanced Budget Reconciliation Act of 1995 (H.R. 2491)
adds a new layer of confiscatory taxes, succession taxes, to be imposed
upon U.S. citizens and residents. Unlike gift or estate taxes, which are
imposed upon the giver or his estate, succession taxes are imposed upon
the recipient of bequests. Under the Senate proposal, succession taxes
would be levied upon property acquired by gift or inheritance from a
former U.S. citizen or former long-term resident of the U.S. who leaves
U.S. tax jurisdiction after February, 1995. This tax would make it finan-
cially more punitive for an American to renounce his citizenship unless
his entire family came along. It would also make unattractive for foreign-
ers with close U.S. relatives to take up residence in the United States.
The would be subject ot confiscatory exit taxes upon leaving.
(Questions arise - is there any legislation that Congress can't pass or
attempt to pass? Aren't Republicans supposted to be an alternative to
Democrates?) - GLJ