BREAKING: (Updated)
Santa Shot Down! Christmas Delayed!

Santa Shot Down!
Santa shot down – Suspect Bubba, stands over Santa’s body.
(photo provided by HSA)

Bjorn Jorgensen
Black Hills Gazette
Comanche Pass, SD

(Update December 20, 2016: Great news! Due to some Christmas Magic, doctors expect Santa Claus will recover from his wounds, enough to be released from the hospital, in time for his Christmas Eve journey. More at the end of this article.)

Santa Claus, internationally beloved icon of the Christmas season, is in intensive care at a local hospital, in critical condition. We have very little information on this tragedy, since the Department of Homeland Security (DHS) showed up only minutes after it was reported and they have cordoned off the scene. They are even barring state and local police from the site. In fact, local officials have apparently been warned not to speak about the incident. According to an official DHS statement, “Santa was blown out of the sky, with his sled and eight tiny reindeer.”

In an unusually timely move, President Obama issued an official written statement about the shooting, saying, “Homeland Security agents have determined that the incident was workplace violence. The suspected shooter is an angry elf, named Blinky, who has close ties to the TEA Party and Alt-Right movements.” This statement is particularly interesting, because it came 20 minutes before the first DHS agent even showed up on the scene.

In response to questions, a White House spokesman vehemently denied initial speculation that the suspect might actually be a terrorist, who was one of the many Muslim refugees, recently admitted into the USA, without proper vetting. The spokesman said, “It’s ridiculous to think it could be a Syrian refugee, because those refugees are almost all women and children. That’s just more ‘Fake News’ coming from the same hateful radicals who supported Donald Trump.”

In a televised statement, a little while later, the President said,

“Under my guidance, the U.S. no longer threatens peace-loving Muslims. So there is no reason to believe that this senseless attack is anything more than ‘workplace violence’, aided of course, by the easy availability of guns. If it is terrorism, it’s home-grown TEA Party terrorists, who are at fault. In fact, Homeland Security is looking into the possibility that the renegade elf, suspected in the case, may have been assisted by two of his radical, gun-toting, TEA Party associates. It’s believed that they aided Blinky, in gaining access to the gun used in this tragic attack on Santa Claus.”

The HSA reports that the two TEA Party suspects are Lutheran, Black Hills farmers named, “Bubba” and “Cletus” (no last names provided). It was Bubba and Cletus, who initially reported the incident to local authorities. They told reporters that they heard shooting in the distance and went to see what it was. As they entered a clearing, they found Santa, wounded; along side his sleigh and several of his reindeer were dead. The Sheriff reported that Santa’s bag of toys was also missing.

On the other hand, the HSA agents tell us that there is a lot more to the story than what Bubba and Cletus are saying. It seems that Bubba and Cletus are prime suspects in the downing of Santa’s sleigh. An HSA spokesman told us that they believe that Bubba and Cletus may have conspired with Blinky the elf, to shoot down Santa and steal all the toys headed for good little girls and boys.

Blinky the elf is still at large and is believed to have fled back to the North Pole, where he plans to lead more renegade elves in a violent take-over of Santa’s workshop and keep all the toys for themselves, thus depriving good little girls and boys, all over the world, of a Merry Christmas.

HSA agents tell us that Bubba, who lives on a remote farm and takes care of his disabled grandmother, is now holed up in a cabin in the mountains, with Cletus, about whom we currently know little. According to the HSA spokesman, Bubba and Cletus are threatening to shoot the remaining two reindeer if Bubba’s manifesto is not published in the New York Times.

We were able to interview Bubba’s elderly grandmother and we asked her if she knew what Bubba’s manifesto was about. In response, she asked, “What’s a manifesto?” When it was explained to her, she laughed and said, “Why heck, Bubba couldn’t write a manifesto. He can’t read or write.”

When asked if Bubba was a terrorist, his grandmother assured our reporters that he was not, saying, “My gosh, sonny. Bubba doesn’t even own a towel, let alone wear one on his head.”

Even so, the HSA and the Obama Administration cling to their assertion that Bubba is actually a top commander in a large Alt-Right TEA Party terrorist cell that is working to turn Santa’s elves against him. The President said in a written statement to the press,

“It’s this kind of TEA Party-induced hatred of everything good and decent, like Santa Claus, Obamacare, admitting Syrian refugees, and amnesty, that requires that the government have more power to arrest and detain these intolerant people, without a warrant, before there is another such tragedy.”

Many community and political leaders have weighed in on the tragic event. The Rev. Jeremiah Wright said, “The old fool never gave me anything but a lump of coal, so he got what he deserved.” Gov. Jeb Bush said, “He never gave me anything but a lump of coal. But regardless of that, I think the shooter should be granted Amnesty, so he won’t be separated from his family.” Speaker Paul Ryan said that he is looking past the fact that Santa never gave him anything but a lump of coal and is looking for a “bi-partisan solution”. Sen. Ted Cruz said that he feels sorry for Santa, but that Santa’s condition will not stop his planed filibuster over Santa’s coal policy. “After all,” said Cruz, “what am I supposed to do with all that coal?” And President-Elect Donald Trump said, “I don’t have time to talk now. I’m headed to Comanche Pass, to visit my dear friend Santa Claus, who has been so good to me and my children over the years. I want to assure him that such things won’t happen under my watch. When I’m President, we will protect those who serve us and our children and make America great again.”

HSA officials went on to tell us that, under provisions of the USA Patriot Act, they had received numerous Suspicious Activity Reports (SARs) from the bank where Bubba and Cletus have accounts. These SARs cover suspicious activities, ranging from joining subversive organizations, such as the National Rifle Association, Gun Owners of America, and the Republican Party, to small donations to other subversive organizations including Americans for Fair Taxation, Citizens Against Government Waste, several very dangerous local TEA Party groups, and a local property rights group, who think they know better how to manage their property than government experts.

Initial reports indicate that there were initially four surviving reindeer, but an HSA spokesman tells us, “Bubba, displaying typical TEA Party intolerance, discovered that Prancer and Comet were queer for each other and shot them both ‘for good measure’.”

When we asked the Homeland Security how Bubba expected anyone to publish his manifesto, since he was reportedly a functional illiterate, agents seemed at a loss and after a few minutes of dancing around the question, they told us that they would get back to us. After a couple of hours, they told us that they discovered that Bubba had been recruited and trained by the TEA Party, several years ago, and that they taught him to read and write, using extremely subversive materials like Atlas Shrugged, The Federalist Papers, and the US Constitution and that Bubba now only pretends to be illiterate.

At this time Homeland Security, along with SWAT teams from the FBI, BATFE, DEA, FDA, IRS, EPA, EEOC, HUD, and the Surgeon General’s office, have the cabin surrounded. Officials report that Bubba and Cletus are accompanied by two other dangerous terrorists; Bubba’s 4 year old son Elmer and his 6 year old daughter Francine.

Federal agents are however, taking their toll on the forces of Bubba and Cletus. Just shortly after noon today, before arrival of the other agencies, HSA agents shot and killed two of Bubba’s dangerous accomplices.

Bubba’s common law wife and second cousin, 41 year old Doreen, was shot 47 times as she reportedly charged authorities, while firing an automatic weapon. Unfortunately, Doreen’s weapon now appears to be missing, but BATFE agents assure us that they will produce it, when the siege is over.

The local coroner, Lars Gundersen, initially raised questions, when he stated that the BATFE report was rather unusual, in that, since BATFE agents claimed that Doreen was charging them when she was shot, all of the exit wounds were in the front of her body. Unfortunately, follow-up attempts to contact Gundersen, for further comment, now reveal that Comanche Pass has neither a coroner nor any resident named Gundersen.

Local residents find this strange, since they say that Gundersen was also the town’s only barber. A local teen pointed out that Google cached archives reveal a website for the Comanche Pass Coroner, naming Gundersen as the Coroner. He also pointed out that a Google Maps street view shows a sign for the Coroner’s Office at a location that is now home to a trendy coffee house that doesn’t seem to fit into the very rural community. Moreover, nobody in Comanche Pass seems to remember the coffee house, before today.

Also interesting is that it now seems that nobody knows where Doreen’s body was taken. HSA officials seem strangely unconcerned about either the missing body or the missing coroner.

But when we pointed out these discrepancies to an HSA spokesman, we were told that if we reported them, it would be considered “Fake News” and indeed, no other news agency has picked up this story.

Also killed was Bubba’s 5 year old son, Bubba, Jr., who HSA agents say was heavily armed and perched in a sniper’s blind, in a nearby tree. The HSA agents deny charges that Bubba, Jr. was actually only playing a hand-held video game in a tree-house, at the time he was shot.

When asked if they could show reporters any of the evidence they had collected against Bubba and Cletus, Chief BATFE agent in-charge, Joseph Mengela, III stated, “That’s not the way we work. After we bring down this evil TEA Party terrorist cell, we’ll make sure that there’s plenty of evidence for you to see.”

By a strange coincidence, several reports, from nearby Rapid City, indicate that Air Force One was seen on the tarmac, at Rapid City Airport, on the morning of the shooting. Also, some residents of Comanche Pass report seeing President Obama and Harry Reid buying ammo and several cases of beer, at Luther’s General Store and Hunting Supply, this morning.

Obama pretending to know about guns

However, official statements from both the White House and the office of the Minority Leader deny that either the President or Senator Reid was in the area, at the time. There does however, seem to be some confusion on this point.

A spokesman for Reid, said, “There is no way that Senator Reid could be responsible for the shooting of Santa Claus, since the Minority Leader is currently in Washington DC, where he has been in intensive meetings with President Obama, at the White House.”

But a White House statement indicated, “the President has been working on his golf game for the last two days at Chicago’s Beverly Country Club.” Interestingly, several members of the club have told reporters from our Chicago affiliate that they have neither seen the President, nor noticed any of the beefed up security that is always so visible, when the President is at the club.

When the discrepancy in the statements was pointed out to the White House Deputy Press Secretary, he appeared at a loss, stammered for a few moments, then called the reporting of such discrepancy, “Fake News”, and took another question. The next journalist to ask a question pointed out that both Reid and the President were seen exiting Air Force One, on video captured by security cameras, at the Rapid City Airport, only three hours before the shooting and asked how the President and Reid could be in two places at once. Instead of answering the question, the White House spokesman launched into a five-minute tirade about press ethics and “Fake News”, in which he accused the two reporters of being TEA Party plants and claimed that the only reason they were asking him such questions was because of the color of Obama’s skin. He then quickly ended the interview, having answered no questions.

Santa’s Public Relations elf, Claude, told us that on-board sleigh telemetry indicates that, at the time of the shooting, Santa was several miles from Bubba’s property and that the sleigh glided that distance, before crashing. Claude went on to explain that, at the time Santa’s sleigh was hit, he was flying over a remote piece of ground that is often used as a hunting lease and that examination of the property’s lease records show that it is currently being leased by Senate Minority Leader Harry Reid. This too, is being called “Fake News” by the Administration.

In an official statement, President Obama’s press secretary, Josh Earnest said,

“The President is deeply saddened by this unprovoked attack on his friend, Santa Claus and vows that Blinky the elf, Bubba, Cletus, and all of the TEA Party terrorists involved in the shooting will soon be brought to justice.

“He also wants the public to know that this tragedy could have been prevented, if it were not for the extreme limitations of the 4th Amendment, which has hampered the Obama Administration in undoing the damage caused by George W. Bush, in that Bush allowed such extremist, TEA Party groups to flourish. But that wasn’t bad enough, because, as a further result of Bush’s failure to control these groups, Donald Trump’s hateful rhetoric has now encouraged those extremist TEA Party groups to act and shoot down Santa Claus.

“Make no mistake. This is Bushes fault and now, it’s also Trump’s fault. Without the severe limits of the 4th Amendment, we would have known about Bubba, Cletus, and their sick little pointy-eared co-conspirator a long time ago and we could have prevented this senseless tragedy.

“But on a positive note, thanks to provisions we’ve found in the USA Patriot Act and new powers that President Obama will soon be granting himself, by Executive Order, he will soon have virtually unlimited access to every American’s personal information. So that pesky 4th Amendment will soon cause us no more problems. Then we’ll be able to profile and eliminate such citize… uh… domestic terrorists before they become a threat to the Preside… uh… people of the United States and innocent icons like Santa Claus. Just remember that this shooting of Santa Claus was Bush’s fault and it’s now, also Trump’s fault and any reports otherwise are just ‘Fake News”.”

Earnest was asked if Bubba, Cletus, and Blinky the elf would be tried in state or federal court. He responded that, “Since Bubba, Cletus and their little pointy-eared friend have been classified as domestic terrorists, as soon as authorities have them in custody, they will be transported to the terrorist detention facility at Guantanamo, Cuba, where they will be interrogated and eventually face a military tribunal, before being executed.”

When asked if that didn’t violate their rights, Earnest replied, “To begin with, the midget with the pointy ears has no such rights, since he is not a citizen. Hell, he’s not even human. As for Bubba and Cletus, they are far too dangerous to risk them getting off on a technicality, by having a bunch of TEA Party rednecks, getting up in public court, telling ridiculous lies about the President being drunk and being somehow responsible for the shooting. Fortunately, the President understands that sometimes the Constitution must be set aside, for the good of the Presi… I mean… the public and this is one of those instances.”

In a press release issued early this afternoon, the North Pole announced that Christmas will be postponed indefinitely. The announcement also included a statement about Blinky the elf. As it turns out, far from being disgruntled, Blinky was recently promoted to Chief Elf and is one of Santa’s best friends. In Santa’s only statement to the press, before being wheeled into surgery, he exclaimed, “That hack is just as bad with a gun and a beer, as he is with a phone and a pen!”

UPDATE (December 20, 2016): In a remarkable turn of events, with only four days left till Christmas Eve, it is now expected that Santa will be released from the hospital in time for his Christmas Eve journey around the world. Mrs. Claus has been constantly at Santa’s bedside, since the incident, feeding him a steady diet of milk and her famous cookies, said to contain Christmas Magic.

In other good news, a spokesman for the North Pole said that none of the wounds to the reindeer were life-threatening and all were expected to recover, most or all before Christmas Eve. However, Rudolph, who was not with Santa when his sleigh was shot down, has been busy training new reindeer, in the event that one or more may be needed on Christmas Eve.

In a short statement to a handful of reporters, who were allowed into his hospital room, Santa Claus said, “I want to thank President-Elect Donald Trump and his wife Ivanka, for their personal visit to my bedside. I remember that both of them were always such good children. It gives me hope to know that my good friend Donald will be President of the United States and secure the future for good little girls and boys, in the United States and consequently, for those around the world. I also want to thank Bubba and Cletus for saving my life.”

When asked about President Obama’s response, Santa asked, “What about him?” Motioning toward the waste basket, at his bedside, he continued, “Do you think I should thank him for that generic ‘Holiday’ card that didn’t even mention the word ‘Christmas’? I think we all know who’ll be getting a lump of coal this year. You would think that someone who keeps calling for more gun control, would employ better gun control, himself.”

In a closing statement, Santa said, “Just be sure and tell the world that good little girls and boys can expect a wonderful Christmas this year.”

Watch for further news on this developing story.

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Rise in formal citizenship renunciations slows in anticipation of Trump presidency

Wealthy taxpayers anticipate Trump presidency.Wealthy taxpayers anticipate Trump presidency.
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Wealthy taxpayers anticipate Trump presidency.

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highlighted in bold green text, below

According to the latest “Quarterly Publication of Individuals, Who Have Chosen to Expatriate“, published in the Federal Register, 508 “wealthy” U.S. citizens renounced their citizenship in the second quarter of 2016. However, this apparent slow down in renunciations over the first two quarters of the year, is not the result of anything that Obama has done. Rather, it represents election-year anticipation of a Trump presidency.

The number of people who are named on these quarterly lists of expatriates is important, because for one to be on any of these lists, the law that created them requires that he or she be rich, which I’ll go into in a moment. What this means that these people are part of the very small group, who pay more than a third of all personal U.S. income tax and who are responsible for a very significant portion of all business income tax collections, as well. When these very wealthy people renounce their citizenship, the U.S. Treasury loses a disproportionate amount of income tax revenue – tax revenue that those of us who remain have to make up. Worse yet, in many cases, the businesses that these wealthy expats control move offshore with them, leaving more unemployed workers behind.

But let’s get back to why the expatriation rate appears to be dropping. The facts are that the renunciation rate really is dropping, but just not as much as it appears. We have, in fact, predicted this “election year drop”, in some of our past quarterly articles on this subject. If you look at the chart, you’ll see that in 2012, there was a dip in expatriations. Many of those who were preparing to renounce, delayed their departure, in the hope of a Romney victory, in November. But, when that didn’t happen, formal renunciations resumed, as though they had never slowed down, reaching a new record high in 2013. Also, last quarter’s slow down isn’t nearly as much as the above chart would seem to indicate.

In the second quarter of last year (2015), the renunciation total for these wealthy taxpayers was only 460. Furthermore, if we look back to the last presidential election year (2012), we will see that there were only 189 such renunciations recorded in the second quarter of that year. So this would indicate that renunciations are actually on the rise.

Reality is probably somewhere in between. The expatriation rate of wealthy Americans is probably still rising, but just not as much as in a normal year. My prediction remains that the number of formal renunciations of wealthy individuals this year will probably be somewhat lower than last year, unless something happens to make it obvious that Trump will win by a landslide, in which case, we would see a dramatic drop in expatriations. In fact, if as expected, Trump wins on November 8, formal renunciations for the rest of the year would probably be limited only to wealthy celebrities like Rosie O’Donnell, Cher, Whoopi Goldberg, Barbra Streisand (if they keep their promises, which I hope they do), and let us not forget the Clintons, who will probably be moving to a non-extradition country. Of course, if Hillary were to pull out a win, expatriations of the wealthy would immediately begin climbing to new heights.

Now that the election is history and it’s clear that Donald Trump will be our next president, I predict that we could see a drop in formal renunciations in the last quarter of 2016. However, that could be overshadowed by the renunciations of wealthy celebrities, who promised to leave if Trump was elected, like Rosie O’Donnell, Cher, Whoopi Goldberg, and Barbra Streisand, to name but a few (if they keep their promises, which I sincerely hope they do). Of course, we must not forget the Clintons, who would find it wise to move to a non-extradition country, before January 20. There is also the possibility that the Obama Administration has been slow-walking this data, to make it less damaging to Hillary’s campaign. So we could see a sudden upward shift in the numbers for the last quarter. It’s anybody’s guess.

At this point, I should also mention a 2010 law that has led to more expatriation among both the rich and poor. It’s called “FATCA” (the Foreign Accounts Transaction Compliance Act). It was enacted as a part of the HIRE Act of 2010 (H.R. 2847). This misguided law was meant to try to make it difficult for wealthy Americans, in the USA, to hold an offshore bank account. But, as with most of Obama’s initiatives, it was poorly thought out. FATCA has, in fact, made it extremely difficult for U.S. citizens of any income level, living abroad for any reason, to open a bank account in their country of residence. A lot of these people are working for U.S. companies and earning much more than they could earn in the USA, so instead of giving up that income, they are renouncing. It doesn’t matter whether or not they are rich or poor. If they want to open a bank account in their country of residence, they are effectively forced to renounce their U.S. citizenship. Since some of those Americans abroad, who find themselves in the crosshairs of FATCA are rich, they just add to the names on what have been nicknamed, the Taxpatriate Lists.

But regardless of their motivation, the point is that many wealthy taxpayers, who have been preparing to renounce their U.S. citizenship, are now taking have taken a “wait and see” attitude about the election. You see, those wealthy taxpayers, who have been pushed to the brink, be they in the USA or abroad, know that Trump will stop those attacks on success, when he becomes president. Let’s be clear. They don’t expect, nor do they ask for preferential treatment. They’re just tired or being punished for having worked hard and having achieved the “American Dream”. They just want to be treated fairly. The wealthy also know that Hillary would not only continue Obama’s attacks on success, but increase them. She has said so, in no uncertain terms.

It should be noted that only 5% of U.S. wealth is inherited. The rest is first generation wealth, meaning that most of the rich worked for what they have. 70% is earned through business investments and the rest is from high income professions, such as doctors and attorneys. I suppose that, based on the Clinton family, we need to include former political office-holders in that last group, too.

What’s happening is that, since the wealthy really don’t want to leave, they’re they have been waiting to see who wins the election. If Since it’s Trump, most will probably cancel their plans to leave or at least put them on indefinite hold. But if it’s it had been Hillary, we’ll certainly see we would have certainly seen formal renunciations rebound to record levels, just as they did in 2013, after Obama won re-election. A polynomial trend projection of the above chart shows us that renunciations of the wealthy could have easily exceed 50,000 a year, under Hillary. That would be have been disastrous for low and middle income taxpayers. Both taxes and the national debt would skyrocket.

It’s about tax revenue and the national debt.

Let’s be clear. This isn’t about what you or I may think about these potential expatriates. It’s about the tax revenue that these people generate for the U.S. Treasury. The top 1% of income earners pay more than a third of all personal income tax collected in the United States and are also responsible for most business income tax revenue.

Call them names if you wish, but that’s not the point. Due to the “Heroes Earnings Assistance and Relief Tax Act of 2008” – a.k.a. “H.E.A.R.T.”), when the wealthy renounce their citizenship, the USA Treasury receives a one-time expatriation tax (a punishment for wanting to keep what you have earned). But after that, they never receive any tax revenue from those expats again. Sure, some expats will leave behind some U.S. investments, on which they will continue to pay U.S. income tax. But such investments are generally quite limited and most expats take all of their investments offshore, when they leave. This represents a very significant loss in tax revenue that someone else must make up. Guess who that would be.

The net result of punishing success, as Obama has done and as Hillary promises promised to continue, is not more tax revenue, but reduced tax revenue. Worse yet, that reduction isn’t something that can be easily reversed by the next administration. It is, for all intents and purposes, permanent. Once a taxpayer moves to another country and establishes a home and lifestyle there, he is unlikely to ever return, unless something “drastic” happens. Keep that word in mind.

For the record, the quarterly Lists from which these names are drawn, were mandated as a part of the 1996 Health Insurance Portability and Accountability Act (HIPAA) and under that law, the lists are to include the names of only “wealthy” U.S. citizens, who renounce their citizenship. Let’s take a closer look at this.

The lists are to include only the names of “covered expatriates”, as defined under HIPAA and later re-defined in the American Jobs Creation Act of 2004″ (H.R. 4520 – 108th Congress), where the “income” requirement was changed to a “tax liability” requirement and that tax liability was indexed to inflation. The IRS maintains the definition of a “covered expatriate” on their “Expatriation Tax” page. However, that page fails to show the income tax liability requirement for the current tax year (2016). The specific tax liability requirement for 2016 can be found in paragraph 3.30 (page 19) of the IRS publication concerning Inflation Adjusted Items for 2016.

In short, to qualify as a “Covered Expatriate” in 2016 and to therefore have your name placed on the Taxpatriate Lists, you must fit at least one of the following three criteria.

  • Your average annual net income tax liability for the 5 years ending before the date of expatriation or termination of residency is more than $161,000.
  • Your net worth is $2 million or more on the date of your expatriation or termination of residency.
  • You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency.

When we look at the average income tax rate paid be people who paid more than $161,000 in personal income tax, we find that to have paid that amount in tax, the taxpayer probably earned well over 700,000 in each of the last 5 tax years. That’s NOT poor!

Furthermore, if you’re looking at that third item in the list and thinking that a lot of poor or middle class expats might fail to file that form, then think again. You see, the same American Jobs Creation Act that indexed the tax liability threshold for a “covered expatriate”, also imposed a first-ever U.S. Exit Tax on those “covered expatriates”. Few people, who do not qualify as a “covered expatriate” under either of the first two bullet-points, will want to make themselves liable for a tax that they would otherwise not have to pay, by failing to file Form 8854. Sure, a few expats might accidentally fail to file that form or possibly a name of a non-covered expatriate might accidentally appear on one of the lists, through bureaucratic error. But by and large, those lists contain the names of very wealthy former U.S. taxpayers.

Let’s be clear. This is not about Republican or Democrat. It’s not even about the very important segment of taxpayers who pay more than a third of all personal federal income tax and who are being increasingly punished, for having been successful. It’s not about giving the wealthy an advantage. Instead, it’s about removing the increasing disadvantage that goes with being successful in the USA. It’s about a hugely disproportionate amount of lost income tax revenue, when those wealthy taxpayers leave and it’s about who will have to make up that difference in taxes – you and me. That’s what it all comes down to – the unintended punitive effect this expatriation of wealth will have on you and me and other ordinary non-wealthy Americans.

Some may call those expats names, for leaving. Others will understand how these wealthy taxpayers have been forced to make such a painful choice. But regardless of what others think of them, they’re still human and that means they’re going to do their best to preserve what they have justly earned. Regardless of how much they may dislike the idea of leaving the USA, if keeping what they have worked so hard to achieve and being able to pass it on to their children requires renunciation, then that’s what they’ll do. But when they do, it’s those of us who remain, who will have to make up the difference in the form of higher taxes and a higher national debt.

There are just two things that will reverse this ominous trend. Obviously, the election of Donald Trump will have a decided effect on reducing renunciations. The wealthy aren’t asking for special treatment. In fact, all they want is to be treated the same as everyone else. But the current administration is not doing that and Hillary is proposing proposed even more taxes on the wealthy. So look at our choices.

Trump will do his best to treat everyone the same and Hillary will would have continued and build built on Obama’s “soak-the-rich” agenda, driving even more wealthy taxpayers and the jobs they create, offshore. So electing Donald Trump will be was a giant step toward reversing this flight of our most critical taxpayers.

The second thing that would certainly reverse this trend is the FairTax (H.R.25 / S.155). It would replace all federal taxation of income (both personal and business), with a progressive national retail sales tax. Under such a model, playing favorites with any income group would be effectively impossible. That would bring further renunciations to a virtual halt. But since there would be no business income tax, foreign businesses would rush to build manufacturing plants in the USA, creating massive numbers of new jobs. The IRS would be abolished and all personal data held by the IRS, with the exception of that data required to calculate Social Security, would be destroyed. In it’s place would be formed a tiny sub-department, within the U.S. Treasury, that would audit the states. Those state agencies would audit a portion of approximately 25 million retail businesses and nobody would audit individuals (except those who own a sole proprietor retail business and such audits would be relative to sales tax collection). It should be noted that businesses in 45 states already undergo such sales tax audits by the same agencies that would collect the FairTax.

But it gets better. The total lack of a national income tax of any kind would be just the kind of “drastic” change that could encourage many of those prior wealthy expats to return. Although returning and going through naturalization would be costly, up front, the long term benefit would be huge, since U.S. manufactured products would be more competitive, against their foreign counterparts.

Finally, I would like to point out that Vice Presidential Nominee, Mike Pence is a FairTax supporter and will have the ear of Donald Trump for the next four to eight years. So by electing Donald Trump, we could will likely have the best of both worlds. Trump’s initial actions would will certainly cause an immediate and dramatic reduction in the expatriation rate and we could eventually get the FairTax, which would draw wealthy investors into the USA, creating more jobs and thus increasing tax revenue.

There is one thing that is certain. If Hillary were to win had won, the number of wealthy expats would have skyrocketed over the next few years – far more than under Obama, thus dramatically reducing tax revenue, increasing the deficit and driving taxes up for everyone who remains, while leaving more Americans unemployed.

The first and most important step in preserving our tax base is electing Donald Trump President of the United States of America.

We’ve done that. Now, we need to turn our attention to passing the FairTax.

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