In year 1, 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 year 4, 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 and moves to another country, U.S.-source income is still subject to U.S. taxation according to the Internal Revenue Code. Non-resident aliens, including those who have renounced their citizenship, are taxed on their income from U.S. sources.

In Year 1, George Renounces His U