Which brings me to another – hot of the press – incredible article about FATCA written by Professor Denis Kleinfeld, Of Counsel to Fuerst Ittleman David & Joseph PL, Miami, Florida:
The article is well researched, well organized and well thought out. It is the perfect antidote to Robert Stack’s FATCA Myths coming from Treasury.
Leaving the technical aspects of FATCA, the article includes:
Americans are not alone in not trusting the US government. The current Administration is mired in scandals of momentous proportions. Various people at the IRS have raised their constitutional right (taking ‘the Fifth’) to refuse to testify before Congressional committees about targeting political groups, Benghazi, Rosengate (involving news reporting), Fast and Furious (where the Attorney General has been held in contempt of Congress, Solyndra, and a long list of other disputes which also includes Congressional actions all of which impacts the overall credibility of the administration of the US government. The FATCA anti-privacy offensive has been linked to the US surveillance operations being conducted by the National Security Agency (NSA) and its wide-ranging covert operations. This is part of the collective atmosphere and environment that will influence the operations of an FFI when they agree to participate in the FATCA regime.
There has long been a battle over the income taxation of domestic and foreign related transactions. FATCA appears to be only the latest. Prominent commentators have stated that the United States is in an income tax crisis which has now reached new depths. They have pointed out that the federal tax base is under ‘widespread assault.’ For nearly the 100 years of the existence of the income tax in the United States Congress has been unsuccessful in reforming it. The spectacle of politicians pledging to overhaul the tax system is the recurring theme of every election. It is not tax evasion that has created the need for offshore tax havens. Tax havens exist because of the income tax system. Whether the totality of events of which FATCA has become a prominent feature will finally result in adoption of a more efficient and effective tax system world-wide remains to be seen. What can be said for now is that predictions that FATCA could not be implemented are proving true.