Cross posted from USxCanada InfoShop
This is a description of a lengthy technical legal article from over two years ago, recently exhumed and annotated by usxcanada. Balanced in an academic sense; the main concern seems to be pursuing the whales; no minnow perspectives here. Regrets that conditions of use do not permit reposting of the full pdf.
Yu Hang Sunny Kwong
Catch me if you can: relinquishing citizenship for taxation purposes after the 2008 Heart Act
Houston Business & Tax Law Journal 9:3 (Fall 2009) 411-444
No link available.
This seven-part article features 281 footnotes. Parts: (1) Brief introduction (2) Cultural and financial aspects of tax-motivated expatriation (3) History of relevant law (4) Present circumstances (5) Essence of the problem (6) Possible improvements on current legislation (7) Conclusion.
The history in part 3 covers: (a) Early history (b) Expatriation Act of 1868 (c) IRC §877 and Foreign Investors Tax Act of 1966 (d) Health Insurance and Portability and Accountability Act of 1996 (e) American Jobs Creation Act of 2004 (f) Legislation 2004-2008 (g) Heroes Earnings Assistance and Relief Tax Act of 2008.
Part 4 covers different tax categories (income, gift, estate, exit, succession) as well as considerations relating to immigration law.
Kwong addresses “the difficulty of enforcing the United States’ system on wealthy taxpayers with enormous resources, patience and influence.” Yet strong “cultural resistance towards tax-driven expatriates” ensures that legislators will continue to persist in attempting to close loopholes.
Kwong concludes: “The only reliable way to remove the incentive to the expatriates is to adjust the expatriation tax regime so that it is revenue neutral.”