In 2013, George renounces his U.S.citizenship and moves to Fredonia, where income tax rates are very low. George is a multimillionaire and says he "has had it" with high Federal income taxes on wealthy individuals like himself. In 2016, George's U.S.-source income is $1.5 million. That income escapes Federal income taxes.

Question

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Even if George renounces his U.S. citizenship, he may still be subject to U.S. income taxes on his U.S.-source income. The U.S. tax laws have provisions to tax the income of former citizens or long-term residents who have renounced their citizenship or green card. Therefore, George's U.S.-source income of $1.5 million may still be subject to Federal income taxes.

In 2013, George Renounces His U