Video Briefing

Nomad Capitalist: More Americans Want to Secede

Oct 20, 2022Video Briefing10:12Watch on YouTube

The United States is seeing a noticeable rise in public support for the idea of state secession. Recent polling shows that a sizable share of voters would consider leaving the Union if their preferred candidate loses an election, and many see secession as a way to achieve the policies they desire—whether lower taxes, fewer regulations, or different social freedoms.

Polling on Secession

  • Support for secession if a candidate loses: ≈ 40 % of likely voters.
  • General willingness to secede: 37 % of Americans answered “yes” when asked if they would support their state leaving the United States to join a new union of like‑minded states. Support was highest in the South and among Republicans.
  • Perceived outcomes of secession (national poll): 43 % believed secession would make things worse, while only 18 % thought it would improve conditions.
  • Red‑state Trump voters: 33 % said they would be better off if their state seceded, compared with 29 % who said they would be worse off.

Why State Secession Is Unlikely to Deliver Expected Benefits

  1. Economic interdependence – States rely on federal military bases, interstate commerce, and shared infrastructure. A seceding state would lose these federal resources and the economic activity they generate.
  2. Development gaps – Newly independent nations that have emerged in recent years (e.g., South Sudan) are far less developed than the United States. Even a wealthy state such as California or Texas would face a steep transition period.
  3. Legal and diplomatic hurdles – Secession would require complex negotiations over borders, citizenship, debt, and international recognition, none of which are guaranteed.
  4. Tax and regulatory realities – While some states have high marginal tax rates (e.g., Arizona’s recent increase to a 250 k USD income threshold), moving to an existing low‑tax jurisdiction can provide immediate relief without the uncertainties of building a new sovereign economy.

Relocating Instead of Seceding

For individuals dissatisfied with federal or state policies, moving to another country can achieve many of the same goals—lower taxes, different regulatory environments, or greater personal freedoms—without the geopolitical risks of secession.

Practical steps people are taking

  • Establishing offshore banking – Opening accounts in jurisdictions with favorable banking regulations to diversify assets.
  • Securing residence permits – Many countries (e.g., Mexico) offer residency based on proof of income, allowing long‑term stays without full citizenship.
  • Obtaining second citizenship – Some nations grant citizenship through investment, ancestry, or naturalization, providing an alternative legal status and, in some cases, tax advantages.
  • Tax planning – U.S. citizens are subject to citizenship‑based taxation. By establishing bona fide residency abroad and meeting the physical‑presence test, individuals can dramatically reduce or eliminate U.S. tax liability, moving from rates as high as 40 % to rates around 5 % in certain jurisdictions.
  • Diversifying investments – Placing capital in higher‑return assets outside the U.S. can improve financial outcomes independent of domestic policy changes.

Decision Criteria

When evaluating whether to stay, push for secession, or relocate, consider:

Factor Staying in the U.S. Secession Relocating
Economic stability High, but subject to federal policy Uncertain, loss of federal support Depends on host country’s economy
Tax burden Potentially high (e.g., 40 % for high earners) Unknown, likely higher initially Can be as low as 5 % in low‑tax jurisdictions
Personal freedoms Vary by state; federal limits apply Must be negotiated with new government Varies by host country; many offer broader liberties
Legal complexity Standard U.S. law Complex, untested legal framework Established immigration and tax laws
Infrastructure Robust federal services Loss of federal infrastructure (military bases, highways) Depends on host nation’s services

Risks and Caveats

  • Residency requirements – Many countries impose minimum stay periods or income thresholds to maintain residency or citizenship.
  • Tax compliance – U.S. citizens must still file tax returns and may owe taxes on worldwide income unless they qualify for the foreign earned income exclusion or other provisions.
  • Political stability – Some low‑tax jurisdictions may have less stable political environments, which could affect personal safety and asset protection.
  • Cultural adaptation – Relocating involves adjusting to new legal systems, languages, and social norms, which may impact quality of life.

Bottom Line

While a notable portion of the electorate expresses frustration with current political outcomes and entertains the idea of state secession, the practical challenges—economic disruption, legal uncertainty, and international recognition—make secession a high‑risk path to achieving policy goals. Relocating to an existing country that aligns with one’s fiscal and personal‑freedom preferences offers a more immediate and manageable solution, provided individuals carefully plan residency, citizenship, and tax strategies.