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Denise Rich drops US citizenship

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    Socialite could save millions in taxes

  • Duration 2:40
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Well the big names socialite and one time friend of former President Bill Clinton has dropped her United States citizenship.

It's just the latest -- -- wave of wealthy folks slashing their tax bill by cutting ties to America.

This latest case involves Denise Rich she's a Grammy nominated songwriter and longtime democratic donor.

-- ex husband -- the billionaire trader Marc Rich who was indicted in the 1980s when -- including fraud and illegal dealings with Iran.

President Clinton pardoned him on his last day of office an attorney for Denise Rich says she's turned in -- US passport so she can be closer to her family in Europe.

But financial experts say it could also save -- tens of millions of dollars in US Texas.

Trace Gallagher live in the west with seven new -- exactly how much money she gonna say.

Well you know she -- money a couple of ways you have one Austria is an hour she's a citizen and Austria doesn't tax worldwide income the same way the United States -- -- -- tens of millions of dollars.

As well as the fact that Austria's tax rate is much lower than the United States that she still owns more than a hundred million dollars in property in the US.

And back in 2008 congress passed an exit tax which would take 15% of her net worth.

But experts think she restructure is -- assets into foreign.

Contracts that she could mitigate for tax base there as well -- And it -- -- phrase this this is a bit of a trend here it looks like.

Yes and some say that it might be related to the economy because if you look at the numbers it has gone up dramatically in recent years and we look back at this chart in just the past four years.

The number of people giving up their passports has gone up 700%.

And they expected to rise again this year.

Among the best known ex pats are FaceBook co-founder Eduardo Severin as well as John -- is the third he's the -- to the Campbell's soup.

Fortune but the conservative Cato Institute does not think a better economy is gonna help this listen to them.

Stronger economies can increase the value of your portfolio.

So ultimately this is an issue of the American tax code.

Being extremely unfriendly to wealth creation.

And that's driving -- People out of the country that we should want in the country because of their ability to deploy all that all those -- -- to create jobs.

He had just an example Eduardo -- that co-founder of FaceBook could save anywhere between 65 and 75 million dollars by giving up.

His residency.

Well Trace Gallagher in Los Angeles straight thanks.

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