Quitting the American dream: More Americans gave up their U.S. citizenship than ever before last year

• The State Department said 3,415 people in total gave up U.S. citizenship
• This was an increase on 2013 when just 2,999 ditched their citizenship
• Americans who decide to leave the U.S. may also have to pay an exit fee 

By Belinda Robinson For Mail Online

Published: 10:54 EST, 13 February 2015 | Updated: 11:50 EST, 13 February 2015

It's the country that wants its citizens to share in the American dream.

But in a sign of the times figures show that more Americans gave up their U.S. citizenship in 2014 than ever before. 

According to figures released quarterly by the U.S. State Department, 3,415 people ditched their U.S. citizenship in 2014.

In contrast, just 2,999 renounced their citizenship in 2013, according to the figures obtained by Forbes.

Figures released quarterly by the U.S. State Department show 3,415 decided to ditch their U.S. citizenship.

The uptick may not be tremendous but the difference shows a 221 per cent increase altogether. 

And the rise has led the U.S. State Department to raise the fee for renunciation from $450 to $2,350 because of the extra work to process people on their way out of the country.

The reasons Americans are leaving for good vary but it's thought that the main reason that many make the decision to renounce citizenship is due to the U.S. tax system.

Americans who live abroad have to file taxes on worldwide income and must also submit to bank account and financial reporting and disclosure.

Failure to do so can result in penalties and even criminal charges. But many Americans who reside abroad believe that the tax laws are inconvenient.

In addition, U.S. citizens who live in a foreign country must also pay tax where they live.

Exit tax: Senators Chuck Schumer, left, and Bob Casey, right, introduced a bill to double the exit tax to 30 per cent for anyone leaving the U.S. for tax reasons

Citizenship: Facebook co-founder Eduardo Saverin gave up his U.S. citizenship to live in Singapore

Understanding the U.S. tax system can be complicated and the penalties for flouting the law can be extremely costly. 

There is also a global system in place dubbed the annual foreign bank account reports known as FBARs which carry civil and even criminal penalties. 

Another procedure called FATCA requires filing an annual Form 8938 once foreign assets reach a particular amount.

Over 100 foreign banks in international countries including Russia and China supply the names of Americans who have a particular amount in their bank accounts.

It's led to some foreign banks not wanting to take on American account holders to avoid the paperwork.

And there are even more difficulties for some Americans who want to leave as they have to pay an 'exit tax.'

Facebook co-founder Eduardo Saverin is one of the country's most high profile examples of people who have renounced U.S. citizenship to live in Singapore.

His departure led Senators Chuck Schumer and Bob Casey to introduce a bill to double the exit tax to 30 per cent for anyone leaving the U.S. for tax reasons. 

Under existing law, in order to leave America, you generally must prove five years of U.S. tax compliance. Those with a net worth greater than $2 million will pay an exit tax. 

Long-term residents who give up their Green Card may also have to pay the exit tax.

Meanwhile, dual citizens in Canada who are trying to shed their U.S. citizenship have created a backlog at the U.S. consulate in Toronto.