You can say that again!

Thank you for clarifying this, John. Now I understand your use of the term ‘caste.’

Excellent idea. Many readers are probably totally unaware of this category.

I encourage this. You might emphasize the distinction between citizens for nationality purposes and citizens for tax purposes. One can cease to be a citizen for nationality purposes (renounce U.S. citizenship) and continue to be a “citizen” for tax purposes. See IRC S. 7701(a)(5) and follow the trail.

The same principle applies to Green Card holders. See S. 7701(b)(6) of the IRC which makes it clear that one continues to be a U.S. taxpayer even when a Green Card Holder no longer lives in the United States. This provision has existed since 1984. In other words, to get rid of the Green Card for tax purposes some very specific steps must be taken.

Thanks for your series of posts of posts on renouncing U.S. citizenship. To carry on our Twitter discussion:

I believe that what you describe as a “class system” is better described as a “caste system”. It’s very clear that the purpose of what you describe as the “third class” and “fourth class” citizens, is to assist in paying the expenses of the “first class” and “second class” citizens.

This reality is expressed in the form of #PFIC taxation, Obamacare surtax (3.8%), and other taxes, fines and penalties imposed on those living abroad. The purpose of the reporting requirements (FBAR, Form 8938, From 3520, etc.) is to identify the assets that are subject to this punitive taxation. “So, renounce”, say the Homelanders.

As you know a “third or fourth class citizen” must pay the Homeland to renounce and to be relieved of the responsibility of paying for the “first class” and “second class” citizens. This payment is in the “form” (no pun intended) of administrative fees ($2350), five years of taxes and for a very large number of people (think “covered expatriate”) the S. 877A Exit Tax. The S. 877A Exit Tax is neither understood nor properly described by most tax and legal professionals. It is far more pervasive (and pernicious) than most realize. In addition, once one is identified as a “covered expatriate”, that status will follow you for life and will make it impossible to make gifts or bequests to U.S. persons (leading to family renunciations).

How is this different from a “caste system” where the lower castes are required to pay for the higher level castes. It shocks the conscience to realize what America has become.

True. Maybe I should a follow-up post on classes of non-citizens or “US persons”…

You’re absolutely right. Other countries acquiesced to the Inter Governmental Agreements far too easily, including the Netherlands. I don’t really blame them, though. The US is the bully; the Netherlands is the weakling.

I think the place to start would be the Isaac Brock Society website http://isaacbrocksociety.ca/. They gather all the information about this issue and suggestions for how to take action too.