[Editor's Note: The following post is by TDV Editor-in-Chief, Jeff Berwick]
Billionaire James Ross Mellon was employing the Permanent Traveler (PT) also known as the Prior Taxpayer strategy in the 1970s before it was cool. And while that strategy may be catching on, it is anything but popular yet.
James R. Mellon is a very, very wealthy man as you might expect of someone who is a heir to the famous Mellon family. James Mellon is now a citizen of the world, never spending enough time in any one tax farm to become legally required to pay them any income tax. But he does this without the US citizenship imposed on him at birth. In 1977 after the shock of realizing that the US would hound him for income taxes no matter where in the world he went or for how long, Mellon gave up his US citizenship after becoming a citizen of the British Virgin Islands. This is exactly the sort of thing we have been recommending at TDV and making possible with TDV Passports.
The US is the most aggressive tax farmer among the tax farm nation-states infecting the planet. The US authorities will follow US citizens and permanent residents (tax livestock) to the ends of the earth for the rest of their lives in order to collect their extortion money.
Giving up US citizenship was just the first of Mellon's theft-prevention tactics. After that he set up various companies — all legally — to shield his assets even more. This is the kind of thing that TDV Offshore can help you do, too. Recently a massive leak of offshore banking files gave Mellon some negative exposure, not that he particularly cares. While the collectivists of the world are outraged at how much of "their" infrastructure money is being hidden from their redistributionist governments, Mellon says, "I do not care what people think. I am interested only, whether what I am doing is legal. And what I do, was and is legal."
Of course, he is right. It should not matter what the thieves and tax-lovers of the world think about what you do. As long as it's legal, you should employ every single strategy to keep as much of the money you rightfully earn safe from government theft as you possibly can. Heck, even if its not legal. Although to keep ourselves out of being fed through a tube at Guantanamo Bay we don't offer any PT solutions that are illegal.
The USSA government has taken notice of the trends, and is planning to do something about it. It will start with making it harder to give up citizenship, taking as much as possible from those who choose to leave. Just listen to Hawaiian governor, Neil Ambercrombie (Communist – Hawaii), describe expatriates: "Benedict Arnolds who would sell out their citizenship, sell out their country in order to maintain their wealth". The knives are sharpening and it will culminate in no one being able to leave at all. Edward Snowden was not the first and will not be the last to have his passport revoked. And, that wall along the Mexican border that the Senate is considering? Its true purpose will be revealed in the coming years. It's not to keep Mexicans out – funny that people think that is what it is for, especially since there are now more Mexicans fleeing the US than going there according to the Washington Post. Also, the Senate is considering legislation to retroactively punish permanent expatriates who gave up their US slave cards in the last ten years.
That's how bad it is. They are willing to punish people for things that weren't even crimes at the time. There is no reasoning with criminals this vindictive and with the capacity for such violence. The best you can hope to do is get out of their way. Tune in to TDV for ways to protect yourself from them, but your first line of defense is to divorce yourself from their corrupt regime. Even if they come after permanent expats retroactively, renouncing that citizenship will still leave you in a much better situation than remaining a citizen within the empire or in any of the crumbling Western nation states.
And the best news is that the PT lifestyle is not for just billionaires and millionaires anymore. Offshore companies in tax-free jurisdictions have now become a cheap commodity and cheap airfare and the internet have made almost anyone who wants to be mobile able to do it.
We recently met and interviewed (in the TDV subscriber letter) a young web designer from Holland who had enough of it and came to Acapulco, Mexico. He opened an offshore company through TDV Offshore and now, fully legally, has double the income he used to have. Plus, he lives in a freer place on the beach with his 100mb ($60/month) internet connection and says it was the best decision of his life.
I've been living the PT lifestyle for the last ten years and have no intention to stop until the socialist, welfare/warfare taxation states stop laying their illegitimate claims my productivity.
We'll hope to see you out here on the road with the rest of us travellers.