The above tweet references a comment at the Isaac Brock Society.
@Nervousinvestor
See Deckard’s comment here:
http://isaacbrocksociety.ca/2015/01/27/are-strata-corporations-the-next-target-of-canadian-banks-fatca-zeal/comment-page-1/#comment-5391660
and Badger’s comment here:
http://isaacbrocksociety.ca/2015/01/27/are-strata-corporations-the-next-target-of-canadian-banks-fatca-zeal/comment-page-1/#comment-5394406
It is quite obvious that “U.S.ness” is a form of contamination that has the potential to first infect and then effect every aspect of human society. In Deckard’s comment he notes the restrictions placed on the Jews during the Third Reich. The restrictions were completely unjustifiable. Notice how they proceeded one “law” at at time. (what could be more legitimate than that – Remember the “Battle Cry of the Condor” – FATCA is “U.S. law”.)
Restrictions on U.S. persons are completely justifiable.
In the case of FATCA, U.S. persons really ARE a threat to the societies where they live. The reason, as has been articulated time and time again is that:
U.S. citizens are being used by the U.S. as tools (via citizenship-based taxation) to extract capital from other countries and transfer that capital to the U.S. There are people who do not understand this. There are people who pretend to not understand this. But, at the end of the day U.S. citizens really are IN ACTUAL FACT a threat to any country where they may reside.
Eventually countries will be forced to protect themselves from what I would call the:
“U.S.ness Forced Extraction of Capital” and the compliance costs associated with having U.S. citizens as residents.
Who could have imagined even 5 years ago that the discussion on this thread was even taking place?Whether a real threat or not, this newly discovered “Condo Terror”, will make condo boards and developers want to avoid U.S. persons. Same for jobs, marriages, businesses, etc.
But, here is the most likely next step.
Special tax laws imposed on U.S. persons. These laws will be for the purpose of neutralizing the extraction of capital by U.S. tax laws. Simple example:
“No person who is taxable as a U.S. person can have a tax free capital gain on a principal residence.”
(the effect would be to produce a Canadian tax which can be used as a credit against a U.S. tax)
So, although U.S. citizens would still be allowed to own property, they will be subject to special tax rules. These rules are designed to protect the local tax base from the theft of capital by the U.S. Perfectly reasonable. Unfair to the U.S. person? Of course, but they can and should renounce.
On a positive side, I predict a whole new universe of financial products.
These will be designed to:
A. Provide products that give U.S. persons the opportunity to plan for retirement; and
B. Segregate U.S. persons from “free people” so that the “free people” cannot be harmed by the “U.S. contamination”
These new investment vehicles will be a welcome development.
Perhaps we will see Condominiums that are specifically for those who carry the disability of U.S. citizenship.
U.S. citizenship is now a disability and this opens up a whole new world of possible financial products for this group of disabled people.
We are witnessing the beginning. What’s important to note here is that by using FATCA and CBT to attack the tax base of other countries, the U.S. has created a situation where retaliation against U.S. persons is rational, necessary and completely justifiable.
If you don’t want to live in the USA you should renounce NOW. You won’t be able to have any kind of life as a U.S. citizen abroad!
The defensive measures taken to protect countries from “U.S. person contamination” will be incremental and significant. But, they will quickly add up to a world where “U.S. persons are subject to “economic quarantine”. I could also see them being barred from certain professions. For example, the legal profession. Do you really want a lawyer who is subject to FBAR on client trust accounts? Real Estate: Do you really want a broker who must report his trust accounts (with your money) to the IRS?
The implications are huge.
No doubt, some will view this prediction as extreme.
Consider this comment to be a “message in a bottle”. Read it again in 10 years.
And finally, (to echo some of the posters here):
If you want to stop this, then you support the people who are fighting on your behalf.
I am thinking of the stopfatca.ca legal challenge.
U.S. Persons Abroad - Members of a Unique Tax, Form and Penalty Club 