They paid thousands to give up their U.S. citizenship. Now they want a refund
nbcnews.com
Many "accidental Americans" filed a lawsuit after the State Department announced it would lower the fee to renounce citizenship.
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It sounds like they're arguing that the increase was unnecessary, and done to dissuade people from doing it, rather than being reflective of the costs of the process. When they undid the price increase to be in line with other foreign services, they felt that showed that their claim has merit.
But the claim to begin with was that they increased the price due to increased demand straining resources. It would be more odd if it didn't come down after a time with that justification.
Increased demand would bring increased revenue to cover increased resources, no?
Hah, good one.
Generally governments don't work on such a simple profit model. Especially not when activity in one sector (removing citizenship) damages activity in another (collecting taxes).
TBF, dissuading most citizens from it probably should be a goal to avoid capital flight.
The problem comes from edge cases where a "citizen" has never lived on American soil and doesn't intend to act on their entitlement to US citizenship.