In his book Beyond Citizenship: American Identity After Globalization Peter Spiro takes a good hard look at what citizenship is worth in the world today. He concludes (a bit reluctantly I think) that:
Becoming a citizen entitles one to little more than the right to vote, eligibility for some public benefits programs, and freedom from any threat of deportation.”
This is not something that is unique to the United States, this is true of ALL democratic nation-states today. There just isn’t that much difference between what you can do as a citizen versus what you can do as a legal permanent resident. I live in the EU and about the only things I can’t do here as a long-term legal resident of an EU member-state are vote (and this may change soon since the Socialist Party has promised to give us foreigners the vote if they win in 2012), work in the public service sector (no big deal since I’ve never aspired to be a “functionnaire”) and more rights against deportation (though I already have some rights in this respect granted by the EU). My decision to become a French citizen predates this discussion and my support for Isaac Brock. Becoming a French citizen is not going to change my life dramatically and I explain this and my motivations in this post I wrote for the Flophouse, The Narcissism of Difference.
This fact, I think, is what has driven so many nation-states today to relax their naturalization rules and to become more tolerant of plural citizenship. It’s becoming (if it isn’t already) a “market.” If you have a profile that a state is genuinely interest in attracting to its shores, you can examine the different offers and compare. Some states like Singapore, Denmark, New Zealand, Canada even advertise their benefits to potential immigrants . Some of the differentiators they cite are: social benefits, quality of life, low crime rate, ease of starting a business, opportunity, family friendliness and, of course tax regimes. About the only leverage a country really has these days against losing a citizen to another state are the few remaining benefits to citizenship (the right of return) and an appeal to emotion – that sentimental attachment to the place of one’s birth or naturalization which I will admit is a powerful argument in my case. I love my country of origin.
Now, injected into this market, information is circulating about the real costs of American citizenship and the cat is truly among the pigeons. Armed with this knowledge people are having to make decisions. There are two populations involved: potential immigrants to the United States and U.S. emigrants who are residents of competing states. For the latter group it is made even worse by the rhetoric coming out of the U.S. which characterizes American overseas as liars and tax evaders. It’s hard to read some of this stuff and not ask yourself, “Does our country despise us?” and would they prefer that we check out of the hotel? I don’t think Americans at home understand what a powerful “push” all this is. Some of us are wondering if they even care.
In his recent article, FATCA Fallout: Mass Renunciations?, in Opinio Juris, Peter Spiro examines what he thinks are some possible outcomes. Yes, there will be renunciations – a quick read of this site will give anyone a pretty good feel for how likely this is. It just remains to be seen how many go this route and whether or not (and how) the media in the U.S. report it. Will it reduce immigration to the U.S.? I personally think not so much but it will have an impact on naturalizations which are pretty low in the U.S.compared to other states like Canada. Already a surprising number of long-term legal residents in the U.S. are NOT choosing to become citizens. Spiro says that the U.S. naturalization rate dropped to 37% in the year 2000. In 1970 it was nearly 64%. On one side there are few compelling reasons to bother to seek citizenship and on the other there is now a huge reason not to. This is nothing less than the complete destruction of the American Immigrant Story which says that everyone wants to come to the U.S. and become a citizen of the “land of the free and the home of the brave.”
I think Peter Spiro’s analysis is dead right and I would add a few other things worth considering:
1. American diaspora organizations like American Citizens Abroad and AARO will see a dramatic drop in membership.
2. Fewer Americans abroad in these organizations and voting in U.S. elections means even less representation for those who remain U.S. citizens and live outside the country. Any power or influence we have now will be greatly diminished.
3. Cross-border professionals will lose most of their clients and some will not survive. This will make it harder for Americans abroad to get help with taxes or legal advice. A population that was already very poorly served will be even less so. And it will probably cost more for service.
4. Other states will pick up some of the most well-educated, enterprising, productive and skilled Americans abroad who will now be working exclusively on their behalf.
5. Public renunciations of U.S. citizenship will spur others to renounce. One of the most dangerous things to U.S. interests (and I think this is why the Expat forum was closed) is the fact that people are being more and more open about their decision to renounce or relinguish. As Americans abroad see others renouncing and note that the sky didn’t fall in on these people (they can still visit family in the U.S. and so on), folks who had never EVER considered the question are going to think again.
6. And, last but not least, the perceived value in the world of American citizenship will drop even farther and that will have an impact on ALL Americans. It could translate into less protection, less influence and less regard for Americans who travel as tourists or those who try to do business abroad.
I’m sure there are others I haven’t thought of yet. What do you think, folks?
I predict that this post will elicit a number of replies from those who are renouncing or who have renounced, chiming in that renouncing is the only viable option. It may be for many, perhaps most people, but not for everyone.
The right of return is the major appeal to me and is the reason I am not renouncing. My family is there and I predict that I will need their support as I age. Furthermore the social services in the United States are superior in certain ways to those available in Canada, especially for the elderly. I will get denials of this from some of you, but I have witnessed this through the experiences of my elderly Canadian relatives versus the those of my parents in America. Third, the climate is better.
However it is true that once you are in a country, permanent residence gets you nearly everything you would get as a citizen. I did not take out citizenship in Canada until the government decided to force all permanent residents to re-verify their status. In my case that meant digging up 30-year-old documents, some of which had been lost long ago. It turned out to be much easier to take out citizenship. There are however certain classes of occupations that require citizenship status in Canada. Mostly government work, I think.
That said, it is true that America is not what I used to think it was, and we all know it. As reinforcement for that view, see this:
http://www.washingtonpost.com/opinions/is-the-united-states-still-the-land-of-the-free/2012/01/04/gIQAvcD1wP_story.html?hpid=z3
Ladyhawk, you will not get any argument from me. I think you are taking the road that takes more courage–though it will certainly cost you more money. My stance has basically cost me the ability to travel freely in the land of my birth.
My desire is to fight for your rights too.
Well said, foxyladyhawk. When I think deeply about this I flash onto a small cemetery in a rural area of Eastern Washington where my ancestors are buried and I try to imagine a world where I sever (even partially) my connection with that place and my people (living and dead).
It says “Comments Will Be Closed January 15” on this excellent piece by Peter J. Spiro http://opiniojuris.org/2012/01/08/fatca-fallout-mass-renunciations/
After 43 years of living in Canada, most of those years as a Canadian citizen, I am a Canadian and have reaffirmed by Canadian citizenship earlier this month as I even more fully realize its importance to me and at least one of my family members. I am six years compliant with US tax returns and FBARs so can start the process of my renuncation. From there I will take whatever next steps are available to advocate for my son (and others like him in the disabled community of Canada). He knows nothing of this issue and the efforts of his born-in-the USA mom and, as for most of his life, I may again be labelled “over-protective.” What I don’t want is to in some way hurt him in my actions of making this more public than the borders of my household.
PS — Thanks so much, Victoria, and others here for making comments on Peter Spiro’s article (above) and for making us aware of another relevant resource.
Calgay411, I know exactly what you mean. I am fiercely protective of my Frenchlings and if any of this ever touches them in a negative way I will go ballistic. For the moment, aside from the conversation with the younger the other night, I’m trying to mind my words at home. No need for them to stress right now and I need to think carefully about how to talk to them about it. You are not being “over-protective” you are being a Mom and protection is part of our job description. 🙂
Victoria- America’s policy are already hurting your children. This is because anything that hurts you hurts them. Any tax monies that you have had to send to the Americans is money that has come out of the pocket of your children because your money is their only money. If this taxing policy has affected your marriage then it has hurt your children because marital stress has a direct impact on the children of the marriage.
You know, recalcitrantexpat, I never thought of it that way but you make an excellent point. I’m going to have to mull that over it a bit. Thanks.
Peter, thank you for your continuing support. The lure of renunciation is that you can find an end to this misery once and for all. But it too comes with a price, especially if you become a target of IRS suspicion or wrath. Renunciation frees you to be fully in and of the country you have chosen. But it is the closing of a door also, and for some it may not open again.
The biggest reason to seek citizenship in a place you live is to prevent your teenage kids from getting deported for teenage stupidity. No matter how burdensome US citizenship becomes, it still has that value for migrants who actually want to raise a family there. And since greencard holders are already subject to the whole FBAR/FATCA mess anyway, it’s not a significant disincentive to naturalisation. (It IS a significant disincentive to migrating in the first place, but I doubt the folks back home will ever figure that out. If the number of migrants falls, they’ll automatically assume that means people are staying in their home countries, not that other countries are outcompeting the US in attracting migrants).
One of many reasons I’m so proud to live in Hong Kong: permanent residents are absolutely undeportable. The government does not require that you swear a loyalty oath in order to be assured of the right to live here unconditionally, or to vote, or to receive full welfare benefits. (And they don’t care about your foreign bank accounts, or even your domestic bank accounts). Unsurprisingly, the naturalisation rate here is extremely low: there’s no official statistics, but I calculated a maximum of 10% (about 1,500 naturalisations per year, among 15,000 to 20,000 potential new applicants).
Thank you Victoria, the points you have made have not crossed my mind and I very much appreciate becoming aware of Peter Spiros.
As to point 5 above, I am certain this is the case. When I first became aware of something was going on (mid-September), the farthest thing from my mind was renunciation. I am American, through and through and still find the rampant anti-Americanism in Canada quite offensive. But I have been changed after 30 years here and though that doesn’t alter my basic identity as USC, it does give me a base, if you will, to offset the emotional reaction to the “divorce.” Once I became aware of what others were doing (through the Expat Forum), I saw that there was a way out and I am going to take it. My only fear is that I could end up alone here, but it costs too much too emotionally, physically and financially to hang onto USC just for that. I do not want to spend my last 20 years or so, in that state. It just isn’t worth it and I am so grateful to have come across the many people here who have been so supportive and helpful.
One of the things you might consider, nobledreamer, about where to be in your old age is with other expats. I have no children, and so I have worried about ending up alone too. The important thing is to be with people who are comfortably like you.
One of the draws in the US for me is my home town where I went to high school. We have reunions every 5 years. It is in a small town in Minnesota surrounded by gorgeous lakes, and everybody seems to be coming back home to retire. I have such happy memories of those days. They are my oldest and dearest friends, and the thought of moving back and living there until I die is pure heaven.
I tend to agree with Foxy Lady Hawk. I also feel that if everyone simply gives up their citizenship instead of trying to get the tax or Fatca laws changed, then nothing will change.
I have concluded that in spite of everything, I will keep my US citizenship. I chose to move away, it wasn’t as though I was exiled. Of course I am very concerned about what could possibly happen but due to my complicated situation which could look like deliberate underreporting of worldwide income, I feel it’s far riskier to consider renouncing.
I think that many with messy situations would risk the ire of the IRS and govt if they renounced. To my mind, it looks far worse to have filed with under-reported worldwide income and lack of fbars than to have simply not been filing. As I’ve explained earlier, I had misunderstood the extent of my filing and reporting requirements because had thought that the tax treaty relieved me of all this. But if I renounced, I could well imagine they might think I was trying to run away from my obligations.
I wouldn’t put it past them to be particularly spiteful towards someone in my sort of situation that renounced; to them, such a petson would be a traitor. I’ve just to be brave and hope they’ll be merciful.
I could see the US becoming even more draconian once Fatca fully takes effect. And especially if the deficit became even worse and felt threatened by China, for instance. After all, China has the death penalty for tax evasion; who’s to say the US might also adopt such extreme measures if they really felt desperate for funds. After all, they’re going to have their tenticles in everywhere to dig out people hiding.
We’re in unprecedented times because I believe we’re going to wind up as slaves to China as we will wind up comepletely indebted to them… They’re a far greater longterm threst than Islamic extremism to my view.
Perhaps I’m a fool but I would rather take a loss now and at least salvage something than risk losing everything. Call it protection money :p
Mona- I think that you need to reread your own letter. In your letter you talk about the U.S. being threatened by China but if you seriously read your letter it sounds more like the U.S. is your greatest threat. You put your fears of the U.S. in the same terms that a woman would use if she were living with an abusive man. You talk in the same such a woman would talke when contemplating the punishments that her abusive husband would give her if she were to ever leave.
If you as a woman wouldn’t want to stay with such a man then what could possibly be so complicated about your tax filings that you would be too scared to leave an abusive governemnt? The way that you talk about both governments it seems like they are both bad. Therefore I can’t understand your conclusion to not renunciate. Wouldn’t it be better for your emotional health and self respect if you were to renunciate and leave a relationship that has obviously become abusive?
I also have happy memories of our family vacations on the Delaware shore. I will probably remain in the UK forever but would want to be able to still make extended visits, especially if I wind up alone in my old age. I still love the land of my birth in spite of the compliance issues.
I think I know what you mean, nobledreamer. I live in a country that has a very ambivalent relationship with the U.S. I’ve come to be very grateful to the French because even though what they say sometimes makes me uncomfortable, it forces me to THINK. And it’s not just the French, a large number of my friends are from North Africa and their take on things has really broadened my horizons.
Having people around you who will both challenge you and support you is probably one of the greatest gifts of being abroad. And now Peter has given us this forum. What a relief and a joy to talk to other expats about this stuff.
I really recommend Peter Spiro’s book by the way. Read it and you’ll get some real insight into the state of U.S. citizenship in the modern era. Call it “right-sizing” citizenship. 🙂
If anyone is interested I just posted today on the Flophouse an updated Citizenship and International Migration reading list. These are the best titles I’ve read so far. If you have others, let me know. When it comes to bookstores on-line and off I’m like a cocaine addict in a crack house….
http://thefranco-americanflophouse.blogspot.com/2012/01/flophouse-citizenship-and-international.html
Hi Mona, I do agree with you are saying about not being forced into exile. However for some people the price of return is way too high. I’ll give you an example:
A U.S. spouse of a foreign national with children living in a non-US country cannot leave that country with the children. It’s called “kidnapping” and the authorities are deadly serious about it. If you return to the US with the children they will come and take them away from you unless the foreign spouse has given his permission for you to leave. It is for this reason that I cannot obtain a US passport for my Frenchlings unless my French husband comes to the consulate with me and gives his permission for them to have a US passport. In my case there is no issue because we are all OK with our living in France and my husband has no problem with them having US passports. In other cases it is a big issue because it essentially gives the foreign spouse veto power over whether or not those children can visit the US. So for people (usually women) in this case, moving back to the US means giving up the kids. That’s a pretty steep price to pay for the “right of return.”
I don’t have any FBAR issues, but I can see the writing on the wall – I plan to live my life overseas, but this is only getting harder and harder with every passing year. I don’t really care about going to America to live and return to the problems there.
I think that the US doesn’t want me to be a citizen. If they DID, they wouldn’t make it difficult to open up bank accounts and IMPOSSIBLE to open up brokerage accounts. Tax reporting would be non-existant or simple and easy (and completely free). If America had treated its expats like every other country treats expats, there wouldn’t be these renunciations. Now that the US has started playing these little games, I hope 99% of US expats overseas renounce just to show them how stupid their decisions were.
Knowing what I know now about how America will demand money from your bank accounts on money that you paid taxes on overseas + how you are treated like a like a leper overseas by financial institutions, the US couldn’t GIVE me citizenship for FREE. I don’t want it. In some countries, Americans actually pay more for visas due to their “We America — we are the best!” mentality of making it difficult for people to get visas to go to America. So it’s more expensive to be American than a European, for example.
America is a has-been that just doesn’t want to admit it. Now they are making it difficult to leave and expatriate money. This is a classical approach to the problem that repeats itself over and over again. If someone thinks otherwise, good for you. Go ahead and keep dealing with the mounting requirements to be a citizen there. IMHO, it isn’t worth it.
The 2nd most happiest day for me will be when my CLN arrives in the mail.
It’s true that I am experiencing a huge amount of stress and confusion. I am torn. As I’ve said in earlier posts, I now realize my life will never be the same. I love the British with all my heart but have come to realise that there will always be this invisible membrane separating me from them.
Mona, there were two books that helped me enormously in sorting out my feelings about who I was and where I “belonged”.
The first was Eva Hoffman’s Lost in Translation (no relation to the movie of the same name). A beautiful book that made me feel much better. I’m not crazy. I’m not the only one who is confused. I’m not the only one with doubts and fear and stress.
The second was Amin Maalouf’s In the Name of Identity: Violence and the Need to Belong. He is a Lebanese/French author. Read his chapter on the Examination of Identity (kind of like an examination of conscience). I liked his take on it and I found peace after reading what he had to say.
Foxyladyhawk, that is an excellent suggestion. I am quite active in a group I volunteer for, so that is also a possibility. I am a bit reclusive by habit (due to piano studies and meditation) and am very used to spending huge portions of time alone so I guess as long as I am able to function, no problem. What we tried so hard to get my Dad to do and he just wouldn’t, was to get involved in volunteer work. There are so many people that need help and support and there is always something to be found there.
Of course, it’s by no means certain that I would end up a widow or that our son would move to the States. So I try to keep positive thinking about that! But my parents and closest brother are gone and my sister and other brother no longer live in our hometown. So I’d be moving to places that are not familiar – doesn’t sound as enticing as your description of lakes and old and dear friends. How lucky you are!
Yes Victoria, it definitely has been mind-opening and life-changing to live in a place with different points of view. That is one of the things I love the most about Canada – we have people from everywhere here and I so enjoy having the opportunities to explore other cultures. What I am referring to is a bit different than that. I don’t know what France is like but here, there is a saying, “American bashing is the national pastime.” It is ugly, just like racism or any other hate-oriented thinking. When it’s a common thing, people seem not to examine themselves so they just ignore the effect it has. I’ve always been critical of our government and have no problem when others don’t agree with it but when it gets personal, I just can’t get past the lack of respect and also, manners. It comes and goes in waves, I’m just surprised after so long, it still flares up…….
My aunt lived in East Wenatchee and I spent some time in Moscow ID, so I can imagine the sense of what you are describing.
For Mona and Foxyladyhawk – I definitely do not feel that renouncing is for everyone and totally respect where you are. Perhaps some of us forget to add that when we voice our strong opinions/reactions to all of this mess.
Mona, I do feel that I could continue to work towards getting FATCAT etc changed, even if I do renounce. I may not be able to vote, but there are other ways to support the cause. Just my .02.
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