The above tweet references the following article that appeared on the ADCS Sovereignty Facebook page.
Introductory comment added June 1, 2013.
This is an incredibly important issue for the reasons given here.
Since the Obama/Geithner/Shulman assault on U.S. citizens abroad began, I have observed people attempting U.S. tax compliance when they are NOT U.S. persons. The following post is neither fun nor all that interesting. Remember, for those unlucky to have it:
“U.S. citizenship is a problem to be solved.”
You may not need to solve it at all!
Hang in for a long read.
Once upon a time people wanted to be a U.S. citizen and were proud to be a U.S. citizen. That changed in 2011 when the IRS began to “hunt” U.S. citizens in all corners of the world. This affected many people who were and are paying huge taxes in “high tax” jurisdictions and did not know that they were also required to file U.S. tax returns. People were also introduced to Mr. FBAR. Mr. FBAR is a particularly nasty guy who had the potential to subject them to huge penalties.
Dear Presidential Candidate Romney:
I am writing this open letter to you because I believe that you will be the next President of the United States of America. I respect you for your commitment to public service. I respect your patriotism. I am aligned with you when you say that “you will never apologize for America”.
I want to alert you to an issue that may force you (for all practical purposes) to have to “apologize for America”. Of course, you can change this. Although I am certain that your commitment to public service will continue irrespective of whether you become our next president, I do believe that you are America’s best option to guide the country for the next eight years. I support you. You have repeatedly said that you would “never apologize for America”. Continue reading
This is a desperate time to be a U.S. expat. An “ignorant and arrogant” U.S. Congress (to use the language of American Citizens Abroad) along with Carl Levin, Barack Obama, Timothy Geithner and Douglass Shulman are destroying the lives of American citizens who happen to live outside the United States. It is difficult to describe the state of sheer terror that U.S. expats are living under. The bottom line is that the U.S. is threatening monetary penalties which, if implemented, will force U.S. expats to liquidate their assets (homes, RRSPs, etc.) and pay the IRS. U.S. citizenship is such a liability that there will be a number of marriages (which are already on shaky ground) that will end because the non U.S. spouse will not want to be reported to the IRS. Would you want to be married to somebody if it meant that all of your financial information would go to the IRS? To understand the exact reasons and the how this came about, I encourage you to read other parts of this blog. But, the “bottom line” is what it is. Continue reading
Note that I do not condone violation of the law. Furthermore, U.S. expats have reason to keep their money outside the U.S. (they have to live). Hence, these thoughts are really directed to U.S. taxpayers who are resident in the U.S. and keep their money outside the U.S.
FATCA is motivated largely by an attempt to make it hard for U.S. taxpayers to keep their money in foreign countries. But, why would any U.S. resident (expats are a different issue) want to keep their money outside the United States?
There is only one answer: tax rates in other countries are less. The United States taxes corporations (at least in theory) at one of the highest rates in the world. The easiest way to end the use of the so called “tax havens” would be to lower U.S. tax rates. At lower tax rates, U.S. tax payers would have:
1. No incentive to leave their money outside the United States; and
2. Every incentive to to avoid the bureaucratic costs of keeping their money outside the U.S.
The United States should just lower tax rates – let that money come home!
History has demonstrated that when tax rates are lowered, governments take in more tax revenues. But, this if of course too logical for the Levins, Obamas, and Geithners of the world to understand.
Don’t follow through with FATCA – the Berlin wall of the financial system.