Denise Rich gives up US citizenship

This is due to U.S. tax law. We either fix it, or people will choose the option she did.

Austria isn't a tax haven. The problem is that the U.S. taxes its citizens based on their worldwide income, as opposed to most countries, including Austria, which tax their citizens based on their income while they are residing in Austria. It's an important distinction. The U.S. taxes you as a citizen, regardless of where you live. Most other places tax you just based on your residency.

She actually lives in London most of the time. If she stays a U.S. citizens, she has to file two tax returns. One for the UK and one for the U.S. If she renounces her U.S. citizenship and sticks with the Austrian citizenship, which the story said she got through her dad, she files one return in the UK and just pays taxes once.

Taxes throughout the world are residency based. The idea is that you use the services of the country where you are actually living. As long as the U.S. insists on slapping its own citizenship-based tax on top of the resident tax you have to pay elsewhere, people like Eduardo Saverin and Denise Rich, who live overseas, are going to say good bye to their U.S. passports.