Home Business News Bidens war on wealthy America to spur further emigration via Golden Visa exit

Bidens war on wealthy America to spur further emigration via Golden Visa exit

by LLB Finance Reporter
22nd Mar 23 11:39 am

Research by Astons, the international experts on real estate, has revealed how the United States of America has one of the highest estimated rates of tax on income and profits when compared to G12 nations, having also seen one of the highest year on year increases.

It’s estimated that almost $6.2trn is taken in tax revenues across the USA on an annual basis. $2.9trn of this comes via taxes on incomes and profits, with a further $1.47trn coming from social security contributions, payroll taxes and other taxes, although taxes on goods and services ($1.03trn) and taxes on property ($699bn) also contribute significantly.

This total level of tax is estimated to equate to an annual tax bill of $18,616per American, a relatively low rate when considered alongside other comparable countries, such as those within the G12, with France, Germany, Belgium, Netherlands, Switzerland and Sweden all home to a higher estimated annual rate of tax.

It’s also estimated that the average American is now paying 14.2% more tax than they were a year ago, a notable jump but, again, one that sits below that of other G12 nations, with the United Kingdom having seen a 21.2% increase in tax revenue on an annual basis.

However, the increasingly difficult economic landscape in the United States has been cited as one reason that many Americans, particularly wealthy Americans, have decided to leave the United States.

Further analysis of United States tax revenue data from Astons suggests that this is down to the far higher rate of tax on incomes and profits.

In fact, the individual estimated level of tax paid per American on income and profits is currently thought to sit at $8,992, this is significantly higher than many G12 nations, with just Sweden and Switzerland sitting above the United States in this respect.

Not only this, but the average level of tax paid on income and profits is thought to have increased by a huge 21.1% on an annual basis, with just the UK seeing a higher increase at 26.9%.

Of course, for high-net–worth Americans, the implications of increasing taxes on income and profits are likely to be far greater than the average person and, things are only looking set to get worse, suggesting that many more wealthy Americans could be tempted away from the United States in order to streamline their financial affairs.

In fact, President Biden has put forward a number of further major tax proposals, including increasing the top marginal tax rate to 39.6% and an increase in corporate income tax to 28%.

Immigration Expert for Astons USA, Alena Lesina said, “We’ve seen an increasing number of high-net-worth Americans look to citizenship and residency via investment in recent times and while this trend is being driven by a number of factors, one of the predominant reasons is the increasingly difficult economic landscape that they are currently facing.

There has been a sharp rise in taxes owed on income and profits in recent years and President Biden has made it quite clear that further taxation on America’s wealthy is likely.

As a result, the taxes owed by the American individual on their income and profits is comparatively high when compared to other G12 nations, for example, and many Golden Visa destinations not only offer a lower rate of tax, but are actively incentivising wealthy Americans to invest.

The Caribbean continues to be a popular path for residency or citizenship, providing Americans with an accessible Plan B with the benefit of reduced tax liabilities.

Europe also continues to grow in popularity, despite Portugal’s decision to close its Golden Visa programme, with Americans drawn to the pleasant climate, lower cost of living and the ability to obtain citizenship within a fairly short time frame.”

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