Most of the discussion of FATCA revolves the technical complexities, compliance costs and logistical impact on U.S. citizens abroad. FATCA is all those things but it is something far more important.
FATCA is an attack on human freedom everywhere! I have explored this in a previous post: FATCA: Freedom is only one generation away from extinction.
1. FATCA is an attack on the family:
And while this goes on my Canadian family has refused to go along with fatca forcing me to choose between my family here, and my country of birth. FATCA has already destroyed so many people’s lives and Jacobson has done nothing for us. The U.S. cares nothing about us at all. I’m on the road with my renouncing with a heavy heart but, I have no choice! When asked by the consulate if anyone was forcing me to renounce I so badly wanted to say “Yes, YOU are, the U.S. and it’s draconian tax laws.
Comment to an NYU Law School FATCA video (recommended)
2 . See the following video which focuses on issues of liberty, privacy and human freedom:
3. Note the insightful insights of Todundsteur:
His comment reads as follows:
FATCA is a large, clumsy, crude and unilateral attempt by the United States to cudgel, bluster and otherwise persuade the world to subscribe to the US American totalitarian assumption that the financial affairs of every denizen of the planet should be an open book to whatever sovereign entity claims the right to tax that person.
Over the years since the Civil War the citizens of the United States, with no historical experience – yet – of a totalitarian regime have been steadily surrendering power at every level: individual, familial, community and state to a centralized, Federal government.
The citizens of the US have been especially careless of their rights to privacy in the realm of financial and economic affairs. It began with the gradual introduction and imposition of electronic tax withholding and reporting on investment income in the early 60′s and then took a giant leap forward in 1970 with the massive wholesale surrender of financial privacy to the Federal government through passage of the “Bank Secrecy Act”.
The co-option of US financial institutions as the long arm of the IRS was part and parcel of that development.
The early 21st century has witnessed efforts – some more successful than others – by the democratically elected representatives of the US to expand the intrusion of the federal government into nearly every nook and cranny of economic intercourse; chiefly, by imposing reporting requirements on just about any individual or business that makes a commercial purchase of goods or services. Partly out of economic necessity the IRS has recently begun the process of co-opting the entire tax return preparation “industry” in the US and bending them to its will as the unpaid “deputies” of the tax collector.
It is perfectly natural that governments aspire to ominiscience and that is why citizens must always be on their guard and be prepared to challenge. But technological developments have abetted this megalomaniacal urge on the part of the US government to attain financial omniscience. There is serious doubt about the future of cash and the barter-based – and private – economy that cash enables.
Against this backdrop FATCA should be viewed not as an end in itself but rather a very large step in the direction of spreading the notion of the omniscient state throughout the world.
In the big picture, the US insistance on citizenship based taxation is simply a curiosity – but a potentially important one. If the US did not engage in the pointless stupidity of citizenship based taxation FATCA would have remained entirely invisible within the US and the political opposition to FATCA in and out of the US – weak as it is – would likely not have existed at all.
For those of you who are understandably focussed on the collateral damage inflicted by citizenship based taxation on US persons residing outside the US, I suggest that you consider looking for allies in the battle against US citizenship based taxation in a very unlikely place:
For those of you with the interest and patience to contemplate that possibility and who would like a clearer picture of the truly huge stakes for individual liberty and privacy that FATCA has put into play, I commend to your attention the recently published article by Itai Grinberg in the UCLA Law Review, The Battle Over Taxing Offshore Accounts:
Itai is a very intelligent scholar who has only recently left the US Treasury Department to return to academia. He is young and idealistic and he is deeply – and primarily – concerned about the ability of the nation state to force the winners of a globalized economy to contribute to the commonwealth of whatever nation in which they reside.
The question in my mind that I cannot yet answer is: assuming that the goal Mr. Grinberg espouses is good, is it worth the price in the loss of individual liberty and privacy?
When reading his article, ask yourself: would Mr. Grinberg be amenable to backing an end to the tomfoolery of citizenship-based taxation if in so doing it enhanced the possibility that FATCA or something like it became a universal model for world tax administration?
The so called “land of the free” wants to end human freedom under the guise of catching a few people that the U.S. regards as “tax cheats”. From the U.S. perspective tax cheats includes U.S. citizens abroad who are paying taxes to their country of residence.
To be sure FATCA is an attempt to deputize other countries into the enforcement of the immorality of citizenship-based taxation. If it weren’t so sad it would be laughable. What the U.S. is “asking” other countries to do is:
At the expense of that other country, assist the IRS in tracking down residents of that country (including citizens of that country) and then turn them over to the IRS for processing. The goal is to help the IRS extract money from those people. The money will be then be transferred from that country to the U.S. In other words, FATCA is for the purpose of forcing other countries to “pay tribute” to the U.S.
As horrible as this is: FATCA is primarily an attack on freedom. The sooner the rest of the world sees it as it really is – an attack on freedom everywhere – the sooner the opposition to FATCA will begin.
FATCA is incredible. Simply incredible.