In a recent and consequential personal decision, one of these fellows has agreed to give up their US citizenship. This decision bridges the gap between their family legacy and today’s economic realities. This action is a byproduct of the challenges posed by US tax adherence for citizens residing outside the country. Yet the United States uniquely taxes its citizens, not its residents. It is one of the very few countries in the world to share this extraordinary policy with Eritrea. American citizens residing abroad encounter an overwhelming labyrinth of US tax laws. This challenge is sometimes incurred at a prohibitive cost to them.
For many expatriates, the financial burden of having to file US taxes is overwhelming. Estimates suggest that the yearly cost of compliance can be between A$1,200 and A$3,500. The process is time- and labor-intensive, adding to the financial burden. Yet, for most expatriates, American tax filing is a disorienting labyrinth. They have to jump through difficult forms and burdensome regulations that are often confusing.
The main character in this tale has been an “accidental American” since birth, having inherited citizenship from their dad. Their family history in the United States is extremely hearty, as their family roots go back as far as 1636. This lineage is proud to call the Revolutionary War patriot, Lt. Their actions reinforce a beautiful place, deeply connected to the stormy currents that have shaped American history.
In addition to their ancestral connections, the subject is related to one of America’s most well-known former presidents. Their great-grandmother’s story is the most moving. She ran a farm while caring for nine children, truly a symbol of strength and commitment. Further influencing this legacy, one such great-uncle helped lead the city of San Francisco’s post—1906 earthquake recovery and reconstruction. Their grandfather even ran for office himself, campaigning to be a state senator.
Even with this incredible legacy, the topic today may still be feeling more and more like they are losing touch with America. The challenges associated with harsh tax laws have played a major role in creating this sentiment. Overwhelmed by these burdens, they chose to give up their citizenship. This very appealing choice, however, carries a price tag of US$2,350.
After coming to this determination, the person in question was indeed able to successfully get a certificate of renunciation. They had their US passport hole-punched, signalling an abrupt end to their transnational identity as an American citizen. Yet this decision has incredible emotional stakes. It is an unprecedented fiscal compass, and it reflects Tsoʼs own remarkable personal development from a place that used to be — and still should be, in many respects — her homeland.
No one makes the choice to renounce citizenship lightly. Unfortunately, for most expatriates, this is the height of their frustration. They have to battle with transactional taxes that are perpetual and follow them anywhere they go. The belief that one should not be taxed on income earned outside of the United States resonates deeply with individuals who have established their lives abroad.
The ramifications of this decision go well beyond their own pocketbook. It poses more fundamental questions about citizenship, identity, and the nature of civic engagement that these tournaments require of us. Yet as global mobility increases, more Americans living overseas are beginning to look at their options. Communities of all sizes are reconciling their historic ties with the realities and opportunity of contemporary life.