In order for legislation to have “moral force”, it should at a minimum:
1. Be read by legislators prior to it becoming law; and
2. Not contain provisions that are unrelated to the main purpose of the legislation – i.e. NOT “hitch a ride”
“Hitching a ride”** is especially easy if the Congressmen don’t read the legislation. Nancy Pelosi commenting in relation to Obamacare, noted that it was important for Congress to pass the bill, so that the American people (and presumably Congress) could learn what was in it.
FATCA is unrelated to the purpose of the HIRE Act. It simply “hitched a ride” into the Hire Act. Who knows how many Congressmen read and understood the Hire Act prior to voting in favor of it? Provisions that “hitch a ride” into legislation are analagous to soldiers left inside a Trojan Horse*. Once the primary legislation takes effect, the “hitchhiker provisions” will be unleashed on an unsuspecting public.
FATCA has been referred to as the “neutron bomb” of international finance. It is the most dangerous act of American Imperialism ever. It will hasten the demise of the U.S. as a world power. Continue reading →
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 →