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Why expats are ditching their U.S. passports

3,000 Americans around the world renounced their citizenship last year. Meet five U.S. citizens who have given up their passports -- or are thinking about it -- to escape an overly complicated tax code.

'I still feel American'

gallery expats
  • Name: Laurie Lautmann, 58
  • Lives in: Gisborne, New Zealand

I went traveling through the Pacific, and landed in New Zealand in my mid-20s. I just loved it, and ended up staying, buying a home, finding a partner -- the whole works.

My partner, Frank, and I are pretty average middle class types. Frank is a local gym teacher, and I have a part-time job as a cleaner. Over the years, we have each separately owned our own businesses. Frank still has his, giving surfing lessons.

Related: Expats say the tax code is too complicated

The tax obligations imposed by the U.S. drove us crazy! We live in a small town, and it was difficult to find an expert who knew the ins and outs of the U.S. tax system. When we did find a firm, it cost us more than 4,000 New Zealand dollars ($3,360) for them to do our U.S. taxes each year. We looked at the money we paid the accountants as the price we paid to retain our U.S. citizenship. But as we got older and U.S. tax laws became more convoluted, it just didn't seem worth it anymore.

The accountancy fee is the main reason why we both renounced our U.S. citizenship last year. It wasn't an easy decision -- super stressful, and very emotional. But at the end of the day, I think it was the right thing for us.

We made an embassy appointment, all the time thinking long and hard about it. I was nervous during the long drive to the consulate in Auckland. I couldn't eat; I couldn't think; I couldn't sleep.

From the time that you're young, you pledge your allegiance to the flag at school, and you always hear the U.S. is the best country. And here we were, cutting off our ties to America.

I still feel American -- it's where I grew up. If someone asks me what I am, well, hey, I'm an American! I can't say I'm a Kiwi, a New Zealander. I sound like an American, and I really am one. I just don't have the passport anymore.

  @sophia_yan - Last updated March 10 2014 09:59 PM ET

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