Saverin, the billionaire Facebook co-founder, recently ended his U.S. citizenship as a legal means of avoiding U.S. taxes.
As I have explained many times, U.S. laws, unlike most nations, impose taxes on “U.S. persons” (citizens and resident aliens), no matter where in the world they live and without regard to their income sources. Terminating citizenship is the only way to avoid U.S. taxes.
The vast majority of other national tax systems impose taxes only on income earned within their borders. A Canadian or British citizen, for example, can move offshore and legally leave most domestic taxes behind. A Panamanian is taxed only on income earned within his country, none offshore.