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Well, a modern form of that still sort of exists today, except the leash is longer.
You cannot for example just get rid of your US citizenship - you have to pay to get rid of it, and as long as you have it, you're susceptible to paying taxes to the USA. Even if you have dual citizenship.
I wanted this to be false but I see that there is currently a minimum renunciation fee of $2,350. I assume there are likely other consulate fees that may bring it closer to $2,500 at the very least. What a scam.
Edit: typo
US is one of like 2 or 3 countries that does that.
There are usually other costs, and if you have any outstanding debts you have to pay those first too.
Some may need a lawyer to figure out how to just do the paperwork.
I mean, you can kinda just sell all your assets in the US and move permanently abroad. As long as you never go back to the US, how are they gonna make you pay?
They can issue a bogus charge on interpol and get u home and then they can deal with u. Also debtors prison can come back any time the way things are going
Interpol is not a "world police" but merely request the local police to make the arrest on the requesting country's behalf, and you can fight extradition in court, just make sure the country you plan to move to has a functional judicial system and then you're probably safe, especially if you manage to obtain Citizenship there. Most democratic countries are not gonna extradite their own citizens on charges with flimsy evidence.
They have treaties with some countries so that if you don't pay you can have your wages garnished. This is assuming you have citizenship and not residency etc with the other country.
So it's on a per country basis. In some, nothing happens. In some there's also treaties so you don't have to pay double tax anyway, or it's percentage based.
However, this also assumes you have no family you care about anymore in the USA or that they're able to travel to see you instead. Otherwise you face prison for tax evasion if you ever go back.
not always true, quoting an older comment of mine:
on the off chance it applies to you, the FEIE rules state that if you spend 330 days (out of a 12 consecutive month period of time, important to note that it does not have to be a calendar year) outside of the US, you don't have to pay taxes on the money you made during that time
So I guess you have to make sure you apply to have your tax home changed. Doesn't seem automatic from what I read
that's true there's a form you need to fill out but still, better than paying taxes to a place you're not.