— U.S. Citizen Abroad (@USCitizenAbroad) September 28, 2014
Sure get out an vote. That said, the time has come for Americans abroad to be treated as another state. Their should be a representative they can vote for directly.
But the Obama administration is moving from the traditional and constitutional role of “separation of powers” to “consolidation of power”.
The separation of powers is often on full display when there are key Congressional hearings focused on the work (or lack thereof) undertaken by the key executive branch agencies responsible for tax enforcement:
1. Treasury/IRS, and
2. Justice Department.
There is an important reason why every day taxpayers should be interested in these hearings; particularly those who are considering renouncing United States Citizenship.
The actions and reactions of the IRS and Justice Department are often in response to Congressional hearings. This is very much the case with individual taxpayers with assets throughout the world.
A brief timeline of various hearings, and actions taken by the IRS and Justice Department (largely in response to such criticism) can be followed to demonstrate the influence of these hearings:
- Year 2006
U.S. Senate Permanent Subcommittee on Investigations, published their report on August 1, 2006, entitled Tax Haven Abuses: The Enablers, The Tools &…
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Prologue a comnment to a blog post from 2014 …
Thanks for a great article. You have used FATCA as a particularly egregious example of the propensity of the President to either ignore law or make law himself. The Obama presidency is one characterized by a rogue President who does what he wants, when he wants and to whom he wants.
One interesting example is the recent 10 billion dollar fine which he personally levied against the French Bank BNP. This is described in “The Economist” as follows:
“WHAT is the appropriate penalty for a firm that abets genocide? Roughly a year’s profit and the sacking of a dozen employees, the American authorities concluded this week. At any rate, that is the punishment meted out to BNP Paribas, a French bank that pleaded guilty to helping the Sudanese government sell oil, clearing proceeds through New York in violation of American sanctions. At the time government-backed militias in the region of Darfur were massacring civilians by the tens of thousands.”
What’s interesting that the bank was fined NOT as a result of a direct act of Congress, but as a fine levied as Executive Order 13622, by President Obama himself, found here:
Interestingly, the U.S. is claiming jurisdiction over the French Bank on the basis that the bank was using U.S. dollars.
To put it simply we have a situation where:
1. President Obama decides to impose a 10 billion fine on a French Bank; and
2. He claims jurisdiction over the bank on the basis that the bank was using U.S. dollars.
Leaving aside the troubling issue of Obama acting as though he is a “law unto himself”, it is obvious that the U.S. can no longer be trusted enough for the USD to be the main reserve currency. The erosion of the status of the USD is well under way.
The threat of FATCA sanctions levied at non-U.S. banks will exacerbate that trend.
Thanks again for a great article!
How the U.S. uses the dollar as to regulate foreign banks by “its very nature benefit U.S. citizens
I accidentally came across an incredible book by Charles Adams called:
For Good and Evil – The Impact of Taxes on the Course of Civilization.
One review is here.
This is a tremendous book. I specifically recommend Chapter 37 “Learning From The Past”.
In any event, I am thrilled to see that the Mises Institute hosted Charles Adams for a week of seminars (which are based on the book).
Better yet, the seminars are (the wonders of technology) available below on YouTube. I haven’t listened them yet. But, if they are like the book. Mr. Adams will give you a model to understand tax policy and the impact that it is sure to have on the future of the United States.
Incredible stuff! Highly recommend (and no I have never met Mr. Adams.)