If you think obama and his cronies aren't chasing millionaires offshore, think again! Not are they going offshore, they are giving up their citizenship in droves to avoid US draconian tax laws implemented by your beloved democrats! Their motto is lets spend $80 BILLION over 10 years to bring in $8 BILLION! Is this how you want your tax dollars spent?
American Exodus as
Freedom Dies
Growing numbers of Americans living abroad are renouncing their U.S. citizenship because of the Foreign Account Tax Compliance Act (FATCA) - not to mention the ever more burdensome and complex IRS reporting obligations that now come with the treat of financial and even criminal penalties.
The United States is one the few major nations that requires their citizens living abroad to pay income taxes. The only way to end that U.S. tax obligation is to terminate U.S. citizenship.
The latest statistics reveal that more than 1,500 Americans living offshore did just that. According to the Federal Register, that’s up from 743 people in 2009 and 235 in 2008.The United States is one the few major nations that requires their citizens living abroad to pay income taxes. The only way to end that U.S. tax obligation is to terminate U.S. citizenship.
Jackie Bugnion, director of American Citizens Abroad, a Geneva, Switzerland-based group, says the exodus is a backlash on the part of U.S. expatriates and the offshore financial sector to the radical IRS claim that its jurisdiction extends to every bank and financial institution in the entire world.
That extraordinary IRS claim is embodied in FATCA, and was adopted in 2010 by the then Democrat-dominated Congress as part of the Hiring Incentives to Restore Employment Act and signed with approval by President Obama.
This law threatens foreign financial banks and financial institutions of all kinds with a 30% withholding tax if they fail to comply with an onerous reporting regime on their U.S. clients.
That extraordinary IRS claim is embodied in FATCA, and was adopted in 2010 by the then Democrat-dominated Congress as part of the Hiring Incentives to Restore Employment Act and signed with approval by President Obama.
This law threatens foreign financial banks and financial institutions of all kinds with a 30% withholding tax if they fail to comply with an onerous reporting regime on their U.S. clients.
Dangerous to the U.S. Economy
No hearings were held on this radical proposal and few knew it was even contained within the pending bill - just as its sponsors wanted it.
This summer, American Citizens Abroad launched an international campaign to repeal FATCA, which they describe as “misconceived” and “dangerous for the U.S. economy.”
This complements a U.S. drive to repeal FATCA led by the Coalition for Tax Competition, of which The Sovereign Society is a member.
While the reaction of an increasing number of Americans has been to acquire a second passport and dual citizenship as a prelude to ending their U.S. status, numerous foreign banks have reacted by dumping existing American clients and refusing new ones.
As if the threat of FACTA were not enough, the IRS has an active prejudice against U.S. persons with offshore bank accounts and business interests, automatically assuming any American who dares to engage in offshore financial activity is probably a tax evader or worse.
Add to that prejudice the arbitrary application of a complex U.S. tax code, plus the attitude that the taxpayer is always guilty until they can prove otherwise.
This summer, American Citizens Abroad launched an international campaign to repeal FATCA, which they describe as “misconceived” and “dangerous for the U.S. economy.”
This complements a U.S. drive to repeal FATCA led by the Coalition for Tax Competition, of which The Sovereign Society is a member.
While the reaction of an increasing number of Americans has been to acquire a second passport and dual citizenship as a prelude to ending their U.S. status, numerous foreign banks have reacted by dumping existing American clients and refusing new ones.
As if the threat of FACTA were not enough, the IRS has an active prejudice against U.S. persons with offshore bank accounts and business interests, automatically assuming any American who dares to engage in offshore financial activity is probably a tax evader or worse.
Add to that prejudice the arbitrary application of a complex U.S. tax code, plus the attitude that the taxpayer is always guilty until they can prove otherwise.
Preposterous Claims
The IRS makes the preposterous claim that enforcement of FACTA possibly can produce additional tax revenues of US$8 billion over 10 years. At the same time, estimates of the cost of implementing FACTA run into hundreds of billions of dollars, plus at least $10 billion per year for filing requirements.
Nonetheless, in a rare instance of official sanity in July, the IRS announced that the original January 1, 2013 effective date for FATCA had been dropped.
Under the new IRS schedule, offshore private banks, which face the most onerous IRS requirements under FATCA, will not have to provide details on U.S. clients with accounts with more than $50,000 until 2014. Lower value accounts at private banks do not need to be reported until the end of 2014. Certain other accounts do not have to be reported until 2015.
No doubt what brought about this delay was the firestorm of anti-FATCA American public opinion and a chorus of protests, not only from the international financial and banking industry but also from foreign governments.
Canadian treasury officials have attacked FATCA calling it unworkable, far too costly and an unprecedented U.S. intrusion on their national sovereignty.
Typical of these foreign complaints was a prediction that if FATCA were imposed on The Bahamas that offshore financial center would drop most of its American clients.
Delay is not the answer to this colossal FACTA mess. Complete repeal is.
Much hinges on the outcome of the 2012 U.S. elections, not least of which is the freedom of Americans to do business where they choose.
Under the new IRS schedule, offshore private banks, which face the most onerous IRS requirements under FATCA, will not have to provide details on U.S. clients with accounts with more than $50,000 until 2014. Lower value accounts at private banks do not need to be reported until the end of 2014. Certain other accounts do not have to be reported until 2015.
No doubt what brought about this delay was the firestorm of anti-FATCA American public opinion and a chorus of protests, not only from the international financial and banking industry but also from foreign governments.
Canadian treasury officials have attacked FATCA calling it unworkable, far too costly and an unprecedented U.S. intrusion on their national sovereignty.
Typical of these foreign complaints was a prediction that if FATCA were imposed on The Bahamas that offshore financial center would drop most of its American clients.
Delay is not the answer to this colossal FACTA mess. Complete repeal is.
Much hinges on the outcome of the 2012 U.S. elections, not least of which is the freedom of Americans to do business where they choose.
1 comment:
Wow,
This going signifacally discourge doing busines with Americans this needs to be repeal quickly..
I do not think in fact I know that the American Public does not realize how...this law is over reaching and over taxing ...its citizen and anyone that befriends and American abroad.
This is going to effect how many foreigners will enter into joint ventures with an American...Oh My God this is just plain wrong..
This is making us look like Imperalistic Bastards..
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