The situation is indeed dismal. I don’t understand everything in the following article, but I can see that this is going to:
1. Add more bureaucracy and cost to filing your U.S. tax return – it is not clear how this is intended to impact expats (if they are considered at all);
2. Clearly interfere with your ability to invest and plan for retirement. The U.S. has become a nation of forms and bureaucracy.
The U.S. government is aliready taxing unearned and undistributed gains when it comes to PFICs (and perhaps more). Stop for a moment and think what this means. The idea behind income taxation is that a certain percentage of what you receive as INCOME is to go to the government as your contribution toward running the government. In its most simple terms, this means that (imagine a tax rate of 20%) that if you receive $100 then $20 goes to the government. The taxpayer does not receive all of that he was paid. When it comes to taxing “unearned income”, one needs to ask the following question: Continue reading →
A moment ago I posted about the effect of OVDI on U.S. expats. This post will highlight the effect of OVDI on U.S. immigrants. My heart goes out to this person. He thought by immigrating to the U.S. he was coming to the home of the free. He thought he was coming to “that great citadel of freedom and justice”. Here is a summary of his experience. Note that his life is not OVDI related work. Continue reading →
Now that the September 9, 2011 deadline has passed people actually have the chance to think. It is understood that OVDI was primarily aimed at U.S. taxpayers who were using offshore bank accounts to hide money – and evade U.S. income tax. Even the name “Offshore Voluntary Disclosure Initiative” is telling. Two points: Continue reading →
Those of you reading this blog are familiar with my conviction that the U.S. has completely abandoned its historical and constitutional roots. Let me be more precise. It is the Government of the United States that is the problem. The country is run by one of two private clubs – I am referring to the Democrat and the Republican parties. America’s first president George Washington – feared and opposed political parties. In any case, I want to make a specific point: The country and the political process is for the people – not for the politicians, not the IRS, not the political parties, not the mainstream media. November 12, 2011 was the annual celebration of a day for our veterans of armed conflict. During World War II, the allied powers went to war to protect their freedom and liberty from the axis powers. Freedom and liberty is NOT the natural order of the universe. 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 →