Yes, prices will come down. I defer to economist Walter Williams to explain why:
http://jewishworldreview.com/cols/williams071008.php3

Did you ever wonder why only 18% of existing leases on offshore drilling rights are being exercised? Even if we sprinkle our coastlines with oil rigs and drill in the artic, and strip mine Alberta and Montana for oily sand, prices will not come down. This is because the easy oil is diminishing, and the world’s and especially China’s appetite for oil continues to grow. We may be able to somehow become oil self sufficient, but the price will not come down, especially with the weak dollar.

Make that “Largely because the deficit, which is the result of overspending.”

Sorry no sale. Revenues to the government went up 44% in four years. We were able to afford the wars (necessary in any event), but Congress never let up in its heavy-spending ways (a bi-partisan problem), and Bush didn’t try to apply the brakes. You can do math. Why can’t you see that?

This NYT article from late 2006 said that 509 had given up US citizenship so far that year. The article focused on Americans working overseas paying US income tax, saying that we’re the ONLY country that does this, and the estate tax.

I vaguely remember some movement towards citizenship give-ups after the 1993 Clinton tax increases. I think I saw it in Forbes. It wasn’t big numbers then either. But I think marginal rates of 60% (39.6% fed, 2.9% medicare, 12.4% SocSec, and at least 5% in a lot of states) might increase the trickle a bit. Living overseas without losing touch gets ever easier.

Some will react if they can by pulling a Marc Rich and simply won’t pay.

others may vote with their feet and leave the country altogether

Border Run?

You probably didn’t notice this little provision inserted into the Heroes Act of 2008, passed by Congress on June 17.

The headlines in the press release about the law were about the increased benefits for veterans and families of deceased military.

But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act—the portion that states anyone voluntarily giving up his or her citizenship will be taxed on ALL of his assets as if he or she had sold them—paying capital gains on assets that have increased in value, even though they have not been sold!

That’s right. While everyone in the media is focused on keeping aliens out of America, Congress has voted to lock its citizens—or at least a good portion of their assets—into—America! Maybe they’re thinking that patriotism won’t be enough to keep the smart money from recognizing the coming increases in the tax burden.