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nwoodman

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On 6/7/2024 at 8:30 PM, Hektor said:

Thanks @TwoCitiesCapital Couple of thousand dollars, I guess. That’s not big if one wants to exit USA. What am I missing?

 

Yea - it's not a few thousand for anyone that would actually benefit from leaving. 

 

I don't know the ins and outs of exactly what the exit tax and fees are, but it's my understanding it's not small

Edited by TwoCitiesCapital
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Yes all your assets above a $2 million threshold are deemed to have been sold, hence you pay capital gains as an exit tax. 

Which is crazy. I haven't seen any other country do that (though the UK is trying to do that now with inheritance tax liability for people who decide to leave the UK). 

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Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

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34 minutes ago, Munger_Disciple said:

Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

+1

I have lived in Japan, Malaysia, UK before we immigrated to the US. I am on Indian origin. We chose the US (canada was next choice)

 

I have seen other countries and each place will have its plus or minus, but US/Canada for all the negatives we can think of are far better - definitely for immigrants. I am happy to pay the taxes and grateful for the opportunities this country has given me and my kids.

 

I have friends in india, who are doing very well even by western standards. However they are going to spend a fortune to send their kids to do an under-grad in the US and then stay back. These are very smart kids and would do well anywhere in the world. 

 

Actions speak louder than words

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On 6/9/2024 at 3:35 AM, gamma78 said:

Yes all your assets above a $2 million threshold are deemed to have been sold, hence you pay capital gains as an exit tax. 

Which is crazy. I haven't seen any other country do that (though the UK is trying to do that now with inheritance tax liability for people who decide to leave the UK). 

If you are a Canadian resident for tax purposes and cease to be so, you are deemed to have sold all your assets with the capital gains being taxed. Similar rules at death. If you believe you will return eventually, you can make an agreement with the MOF and post a bond to cover the estimated taxes just in case you don't return to Canada.

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On 6/9/2024 at 1:44 PM, rohitc99 said:

 

 

I have seen other countries and each place will have its plus or minus, but US/Canada for all the negatives we can think of are far better - definitely for immigrants. I am happy to pay the taxes and grateful for the opportunities this country has given me and my kids.

 

I

First and foremost, as a US citizen I appreciate you saying that. Regrettably, IMHO, there are far too many US citizens who use the right of free speech to do far more bi***ing and far less appreciating (this may prevalent in other countries, but my frame of reference is too limited to speak on this). Don't get me wrong, criticizing in order to try to make a positive change is admirable, but along with criticizing, one should be grateful for the opportunities afforded. 

 

-Crip

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18 minutes ago, Crip1 said:

I appreciate you saying that. Regrettably, IMHO, there are far too many US citizens who use the right of free speech to do far more bi***ing and far less appreciating

 

You ever exchange lunchboxes at school? You and your friend both brought Gumbo but you find your friend's 10x more tasty than what you brought? And your friend finds your Gumbo 10x more tasty than what he eats and you're both arguing that the other's Gumbo is better.

 

This is what happens, you get accustomed to something for most of your life, and in case of US citizens most have them have never been outside the country. They haven't seen the outside world, way too coddled which is why you see this phenomenon. It's the same with the generational gap, the boomers for example have seen so much in their lives that they are desensitized to a lot of stuff, the newer coddled generation on the other hand, everything is gonna end the world for them.

Edited by whatstheofficerproblem
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  • 3 weeks later...
On 6/10/2024 at 8:53 PM, whatstheofficerproblem said:

 

You ever exchange lunchboxes at school? You and your friend both brought Gumbo but you find your friend's 10x more tasty than what you brought? And your friend finds your Gumbo 10x more tasty than what he eats and you're both arguing that the other's Gumbo is better.

 

This is what happens, you get accustomed to something for most of your life, and in case of US citizens most have them have never been outside the country. They haven't seen the outside world, way too coddled which is why you see this phenomenon. It's the same with the generational gap, the boomers for example have seen so much in their lives that they are desensitized to a lot of stuff, the newer coddled generation on the other hand, everything is gonna end the world for them.

 

RULE OF LAW + freedom of press/speech + democratic elections + term limits + mostly free trade + excellent geographic advantages + entrepreneurship + upward mobility + good military/patriotism + decent infrastructure + decent education + decent healthcare + decent demographics + decent people = I ain’t complainin’ (much)

 

#’merica

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  • 1 month later...

MS released their Indian Macro Indicators Chartbook

 

Key points:

1. GDP growth remains resilient, with GDP growth of 7.8% year-over-year in Q1 FY2025 (April-June 2024). The report forecasts GDP growth of 6.8% for FY2025 and 6.5% for FY2026.

2. Inflation has moderated, with headline CPI inflation at 3.5% year-over-year in July 2024, a 5-year low. Core inflation edged up slightly to 3.4%.

3. The trade deficit widened to $23.5 billion in July 2024. The current account deficit is expected to remain benign at around 1% of GDP in FY2025.

4. Domestic demand indicators show some softening but remain generally positive. Manufacturing and services PMIs remain in expansion territory.

5. The fiscal deficit has narrowed to 4.4% of GDP on a 12-month trailing basis as of June 2024. 

6. Monetary policy remains steady, with the repo rate unchanged at 6.5%. The report expects rates to remain on hold through FY2025-26.

7. Key risks stem from external factors, but the overall outlook remains constructive on India's economic growth prospects.

 

INDIA_20240821_2300.pdf

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On 6/9/2024 at 2:04 PM, Munger_Disciple said:

Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

 

The US is one of the only countries in the world that taxes people on worldwide income.  That's why a lot of wealthy Chinese chose Canada instead of the US.  Let's say that you are a dual citizen of the UK and US and you live in the UK and earn US$500k a year.  You are taxed at both the UK and US, but the UK rate is higher and you get to deduct those UK taxes from your US taxes, so you pay nothing in the US. What if you are offered a job at a bank in Dubai for $500k.  If you were only a UK citizen, that would all be tax free money because Dubai doesn't have an income tax and you aren't taxed while living abroad.  The US would tax you though.  In the US you wouldn't pay tax on the first $120k, but the rest is all taxed as US income tax even though you don't live there.  

 

If you got to live in Portugal and eventually got citizenship, an EU passport is probably as good as a US one, and better if you want to live in another european country. 

 

 

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On 8/30/2024 at 6:22 AM, Saluki said:

 

The US is one of the only countries in the world that taxes people on worldwide income.  That's why a lot of wealthy Chinese chose Canada instead of the US.  Let's say that you are a dual citizen of the UK and US and you live in the UK and earn US$500k a year.  You are taxed at both the UK and US, but the UK rate is higher and you get to deduct those UK taxes from your US taxes, so you pay nothing in the US. What if you are offered a job at a bank in Dubai for $500k.  If you were only a UK citizen, that would all be tax free money because Dubai doesn't have an income tax and you aren't taxed while living abroad.  The US would tax you though.  In the US you wouldn't pay tax on the first $120k, but the rest is all taxed as US income tax even though you don't live there.  

 

If you got to live in Portugal and eventually got citizenship, an EU passport is probably as good as a US one, and better if you want to live in another european country. 

 

 

 

You misunderstand the point I was trying to make. If you are already a US citizen, it doesn't make much sense to renounce your citizenship unless you have very little net worth because there is an exit tax which is levied on all the assets you own (so it is more like a wealth tax on all you wealth including unrealized capital gains) when you renounce your US citizenship. So you are better off biting the bullet, keep your US citizenship and pay taxes on worldwide income even if you work and live abroad.

Edited by Munger_Disciple
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1 hour ago, Munger_Disciple said:

 

You misunderstand the point I was trying to make. If you are already a US citizen, it doesn't make much sense to renounce your citizenship unless you have very little net worth because there is an exit tax which is levied on all the assets you own (so it is more like a wealth tax on all you wealth including unrealized capital gains) when you renounce your US citizenship. So you are better off biting the bullet, keep your US citizenship and pay taxes on worldwide income even if you work and live abroad.

 

Yes, I misunderstood.  I agree, for people in the middle it makes no sense, but might be worth it for the people on the low end, as you mentioned, or even the high end.  One of the Facebook co-founders, Eduardo Saverin, renounced his citizenship because it was a one time hit and he knew his future earnings would dwarf that hit. 

 

Also, baby boomers are now dying off and leaving large inheritances to their heirs.  If you renounce before your parent dies, those assets are not included in your net worth because your entitlement to them doesn't vest until the parent dies, since they can change their minds and disinherit you. An irrevocable trust is a different story though.  

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India stock market is sizzling - more than 150 IPOs in 2024 by end of July compared to 129 in the US

 

https://www.reuters.com/markets/asia/indias-biggest-2024-ipos-stock-markets-boom-2024-07-29/

 

India adding a new billionaire every five days

 

https://www.ndtv.com/business-news/india-added-a-billionaire-every-5-days-in-2024-shows-hurun-rich-list-6443979

 

A bike dealership ended up becoming a billionaire overnight 

 

https://theprint.in/economy/how-bike-dealerships-rs-12-cr-ipo-raised-whopping-rs-4800-cr-why-this-isnt-cause-to-celebrate/2240608/

 

 

US Market IPOs.

https://stockanalysis.com/ipos/2024/

 

 

Edited by TB
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