[judge2020]

If I'm not mistaken, you don't need to file taxes if you relinquish citizenship, right? It's not exactly a secret that a large amount of US taxes go to defense, which maintains the US' position as a world superpower, which you benefit from via your citizenship and US passport.

[davchana]

That benefit comes up only if you are not a citizen of host country. If you are a citizen of host country, most of the times US embassies can't help, even if you hold US citizenship.

India specifically prohibits holding two or more, and expect its citizens to renounce Indian one in 6 months or less from acquiring other one. No repercussions as long as you don't go to India or deal with Indian Embassy (which almost every ex Indian has to, family, relatives, stuff in India). Although one can get an equivalent of green card (OCI) without requirements of residency.

[Question50]

No, generally one must provide evidence from the IRS of 5 years worth of tax compliance in order to relinquish.

The majority of US taxes go towards Social Security, healthcare (Medicare), benefits for US veterans/federal employees, etc.[1] Most of these systems are not available to "US persons" who haven't lived/worked in the USA. Those that have worked there will see their US benefits decreased by amounts paid into non-US tax systems.

[1] https://www.cbpp.org/research/federal-budget/where-do-our-fe...

[eesmith]

Bit of nuance. https://en.wikipedia.org/wiki/Accidental_American#Tax_obliga... asserts:

> Tax compliance is not required for renunciation of US citizenship, but only to formally exit the US tax system after expatriation. Consular officials will not inquire about a person's tax status during the renunciation interview, nor is a potential renunciant required to supply a Social Security Number at any point during the process. The common but mistaken belief that tax compliance is required prior to renunciation is encouraged by the US tax preparation industry, often at great cost to unsuspecting Accidental Americans. It appears, however, that a significant number of former US citizens have renounced without any attempt at tax compliance.

[Question50]

The US Dept. of State Foreign Affairs Manual used by consular officials, who have wide latitude in this area:

https://fam.state.gov/fam/07fam/07fam1260.html#M1266

100% though on the US tax preparation industry.

[eesmith]

It used to be that ex-citizens needed to pay taxes on US sources for 10 years. In 2008 it switched to having to pay a worldwide capital gains tax. https://en.wikipedia.org/wiki/Renunciation_of_citizenship#Ta...

I believe that someone renouncing citizenship specifically to avoid paying US taxes, for example, to not fund the war machine, is subject to the Reed Amendment and may be denied entry into the US. As the above link points out, this is nearly unenforceable.

In practice, I believe most US citizens living overseas pay no actual taxes to the US. The Foreign Earned Income Exclusion excludes "your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023)." - https://www.irs.gov/individuals/international-taxpayers/fore... and a number of countries have a bilateral agreement with the US to prevent double taxation.

> which you benefit from via your citizenship and US passport

The large majority of "accidental Americans" don't have a US passport, and may even be surprised that they have US citizenship.

] The very first such [private letter request] request came from a British citizen who stated that he was unaware of his U.S. citizenship; Willard Yates, a retired tax attorney then with the IRS' Office of Associate Chief Council (International) who handled that PLR request, initially expressed disbelief at the possibility that anyone could be unaware of their U.S. citizenship, but states that later, "after working a bunch of 877 PLRs, I realized we didn’t know anything about anything when it came to U.S. citizens working overseas, accidental or otherwise." - https://en.wikipedia.org/wiki/Accidental_American

For these people the benefits are minuscule compared with the negatives, like loss of access to local banking services should the bank not want to deal with FATCA, the expense of finding an accountant who can handle both sets of taxes, and the difficulty of dealing with capital gains, retirement accounts, etc. which may be tax-free in one's home country but not the US, or which may be subject to double taxation.