Record Number of US Citizens, Residents Cut Ties with US in 2015

Summary for those who don't want to work around the login wall (plus extra comments based on my own understanding):

Every quarter the Treasury Department publishes a list of people who renounce US citizenship or long-term residency. Last year there were 4,279 such people. In 2014 it was about 3,300, in 2013 about 3,000, in 2010 and 2011 around 1,500, and every other year was less than 1,000.

We don't know why this is the case. It's conjectured (and I think highly likely) that many do this to disentangle themselves from US tax law and requirements. Unlike nearly every other country, non-resident US citizens are taxed on income they earn abroad. While there are some partial offsets for double taxation, "complying with the law is onerous". Another law, FACTA, "requires financial institution to report income information for their customers who are U.S. taxpayer to the IRS, or else face severe penalties." Some banks would rather not have U.S. account holders than have to report to the IRS.

The U.S. put these in place to identify tax cheaters, and the program has collected some $13 billion. But it's also "complicated the financial lives of an estimated 7 million or more Americans living abroad."

Now my commentary. I'm one of them. I live in Sweden. I have an accountant in the US to handle my taxes and keep track of the laws for me. Among other things, I've had to request special paperwork from the Swedish government to show I am covered by the Totalization Agreement between the US and Sweden regarding double taxation of income with respect to social security taxes. Every year I have to report the highest amount in my bank accounts, in USD, and translate my Swedish tax forms so my accountant can understand it. So, not much work for me, other than the hundreds of dollars in accountant fees.

And a couple of years ago it felt like my bank would have gotten rid of me as a customer if I had any ties (like part-time residency or employment) in the US. I also wonder how getting a home loan, or capital gains from selling a home, would affect things. That's encouraged me to rent.

So I can empathize with those who decide that being a US citizen just isn't worth the hassle.