In 2014, 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 2017, George's U.S.-source income is $1.5 million. That income escapes Federal income taxes.

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Even though George renounced his U.S. citizenship, he may still be subject to U.S. income taxes on his U.S.-source income. Depending on certain factors, such as the amount of time he spends in the U.S. and the type of income he earns, he may still be required to file a U.S. tax return and pay taxes on that income. Simply renouncing citizenship does not automatically exempt someone from U.S. tax obligations.

In 2014, George Renounces His U