The US is one of the few countries who don’t care where you earn the money…

The financial incentive is to avoid paying taxes. Then she gave a hypothetical of what would happen if she hadn’t renounced us citizenship. Because the US taxes a foreign home sale as capital gains, even when it’s labeled as primary residence.

Because wealthy people hate paying taxes and would renounce citizenship to avoid, the US put in this percentage based fee to renounce US citizenship. For normal people it’s nothing. But for the wealthy it can be a lot of money. So now a bunch of them are suing to get it back.

It’s hard for these people to explain why they shouldn’t have to keep paying taxes, so it’s always going to sound confusing when they want sympathy.