U.S. passports: Given and Taken

I came across an interesting post on Matador Network about U.S. passports. The writer mentions how she always thought that U.S. passports were a right not a privilege. I also have to agree that those were my thoughts as well. My past experience in obtaining a passport was simple.  All I had to do was take my birth certificate, an identification card, and money, fill out a form and submit it at the courthouse in my city.

But it turns out that just as you can receive a passport the government can revoke it for many reasons. Some of the reasons are…

• Owing more than $2,500 in back child support
• If your being investigated
•  Are found to be a drug trafficker
•  Considered a national threat

And recently, there’s a new law being proposed before the House of Representatives. The new law can suspend your movement beyond U.S. borders if you owe back taxes. The government can refuse to grant, renew, or revoke any U.S. citizen’s passport if you owe the IRS $50,000. You also don’t need to be found guilty, the IRS can just allege charges and it’s enough for the government to suspend your movement.

I didn’t think this new law could affect many Americans, but it turns out it definitely can. Data from the IRS found almost 300,000 federal employees and retirees together owed $3.4 billion in 2010. I also found it amusing how employees of the House of Representatives along with the Senate owed over $2 million. Even Obama’s staff owed thousands of dollars in back taxes.

It’s also not too difficult to rack up $50,000 in back taxes. For example, if you make $40,000 in taxable federal income and decide not to pay taxes it can take almost 5 years (with fee penalties) to accrue more than $50,000. It’s even more effortless for a high-earner making over $200,000. In a span of just one year a high-earner can end up owing $50,000.

There are some people criticizing this law proposal saying that it violates Article 13 of the Universal Declaration of Human Rights. Article 13 states that everyone has the right to leave any country, including their own, and to return to their country. The Declaration of Human Rights arose directly from the experience of the Second World War and represents the first global expression of rights to which all human beings are inherently entitled. It consists of 30 articles which have been elaborated in subsequent international treaties, regional human rights instruments, national constitutions and laws.

 After reading more into this issue I found out that the U.S. is one of the only countries to tax its citizens on income earned while living abroad! I find that outrageous and not just because I’m an international business major. Also it’s not easy filing taxes abroad because there’s a lack of online filing options as well local and foreign resources. The only way to get out of taxes while living abroad is to renounce U.S. citizenship. There are a number of modest to rich business people that have renounced citizenship because they find it more of a liability than a privilege.

This issue is troubling to me because if this law passes will it have a double standard? As data from the IRS showed, the people that owed a lot of money also work for the government. So will they get special treatment if they decide to go outside U.S borders? Also, what other restrictive laws can start forming in order to force people to pay taxes?

For now, if you plan on going outside of the country for business or pleasure make sure to follow the rules and file your taxes.