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Comment by ForHackernews | Hacker News Reader

When they travel, they may take advantage of visa-free entry into many countries, negotiated through treaties with the US. If they get into legal trouble abroad, they enjoy consular protection from the US State Department. They enjoy the right to vote in US elections, and the (at least theoretical) right to move to the US should they fancy it.

If they really aren't interested, it's a pretty straightforward process to walk into the nearest embassy and opt-out: http://travel.state.gov/content/travel/en/legal-consideratio...

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It's not straightforward at all. There are a bunch of financial implications that are very difficult to navigate.

What financial implications are there, aside from "The IRS wants to make sure you're not leaving just before an anticipated windfall to avoid taxes?"

For example: you have to pay up front, lump sum taxes on things like pensions and retirements, but you still can't withdraw them.

It's expensive to renounce US citizenship.

> lump sum taxes on things like pensions and retirements

You mean if they've been living and working for years in the US, and taking advantage of US tax-advantaged retirement accounts?

Now we're talking about a different person than the parent commenter: "(loosely defined as people who were born in the US decades ago) who do not live or work in the US "

e.g.

https://www.irs.gov/Individuals/International-Taxpayers/Expa...

> rules apply to you if any of the following statements apply.

> * Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation ($147,000 for 2011, $151,000 for 2012, $155,000 for 2013 and $157,000 for 2014).

> * Your net worth is $2 million or more on the date of your expatriation or termination of residency.

> * You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency.

This applies to a tiny subset of people who are either a) Extremely wealthy, or b) Already tax deadbeats.

There are other countries with passports that convey much of the same benefits without the same tax obligation.

"If they get into legal trouble abroad, they may enjoy consular protection from the US State Dept". FTFY.

The "right to move to the US" is ridiculous. I do not have that right unless I pay rent or buy property.

Actually the process is not so straightforward. They still tax you for years afterwards, for one thing. I've also heard that getting the US gov't to actually accept one's passport resignation can challenging, especially if they think you owe them money.

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