Why do American expatriots denounce their US citizenship?

The RT video is misleading. Although some Americans on both the left and right have left the US for political reasons, most denounce their US citizenship to avoid double taxation from the local country and the US.
 
According to the U.S. Department of State, there was a substantial rise in the number of American-born expatriates since 1990.

Expatriation has increased from about 1.5 million to 4.5 million in 2005. The number of expatriates may increase  to about 6 to 8 million by 2009.

Most of the expatriates are retired and live on social security benefits. There are also others that are employed in international business, and those with strong unfavorable political views on American government.
 
For U.S. citizens, cutting ties with their native land is a drastic and irrevocable. But it's one that an increasing number of American expats are willing to take, says Time magazine.

• According to government records, 502 expatriates renounced their U.S. citizenship or permanent residency in the fourth quarter of 2009 -- more than double the number of expatriations in all of 2008.
• In addition, these figures do not include the hundreds -- some experts say thousands -- of applications languishing in various United States consulates and embassies around the world, waiting to be processed.
• While a small number of Americans hand in their passports each year for political reasons, the new surge in permanent expatriations is mainly because of taxes.
• Considering that an estimated 3 million to 6 million Americans reside abroad, the number of renouncements is small. 

Expatriate organizations say the recent increase reflects a growing dissatisfaction with how the United States government treats its expats and their money:

• The United States is the only industrialized nation that taxes its overseas citizens. This subjects citizens to double taxation. 
• Additionally, the U.S. government has implemented tougher rules requiring expatriates to report any foreign bank accounts exceeding $10,000. There are  severe financial penalties for noncompliance.
• These stringent measures were put into place to prevent Americans from stashing undeclared assets in offshore banks.  These rules  make life increasingly difficult for millions of law-abiding expatriates.  

The U.S. government requires other countries to abide by its banking and financial rules when dealing with expatriates.  Americans living abroad are often denied services because of the increasingly complex legalities and logistics involved in serving U.S. customers, says Time.

Many U.S. expats report being turned away by banks and other institutions in their countries of residence only because they are American. This is according to American Citizens Abroad (ACA), a Geneva-based worldwide advocacy group for expatriate U.S. citizens.

If you are considering moving to a foreign country, the magazine and web site, International Living, is a good place to start.

Be aware that foreign countries have special laws that apply to foreigners. You must bring a certain amount of money into the country every month, you may not be able to own property, you may not be able to work in the country or even start a business unless you are an absentee owner and hire only local nationals.

Look before you leap!

Sources: 

Wikipedia

Helena Bachmann, "Why More U.S. Expatriates Are Turning In Their Passports," Time, April 20, 2010.

http://www.time.com/time/world/article/0,8599,1983238,00.html

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