Posted on April 22, 2012 by Petros Posted in Issues regarding US persons abroad 43 Comments Thanks to Deckard1138 for recording and uploading this segment. Used with permission. Thanks also to Pacifica for the transcript of the interview. Share this:TwitterFacebookEmailLike this:Like Loading...
Saddened. Romney is under fire for having accounts in Switzerland and the Caymans. The last thing he needs is to be associated with furriners/ USCs hiding their money ‘offshore’.
Chester12, Don’t be so sad. I wonder where you found information that Romney is “hiding” funds in those two tax havens. I think we can all be very sure that Romney is not “hiding” money in either Switzerland or the Caymans. I am sure that he has leaned over backwards to make sure that every penny of income earned on whatever foreign investments he may have is reported on his US income tax return.
Many US mutual funds include foreign stocks as well as stocks in domestic US corporations. The foreign taxes paid on earnings from these investments are reported by the mutual funds and are creditable against the US tax on that iforeign ncome
I followed up with Pete the Planner, and sent him an email today to thank him.
Thanks Peter for being a stand up guy, and doing that interview.
The issues related to offshore accounts have been continually mis-characterized by the IRS and the press as a hunt for Rich Homeland Tax cheats hiding funds in overseas (Swiss) secret accounts. There has never been any acknowledgement that the effort is much wider than this and the impacts are very negative for many minnows.
US Expats are one aspect, but the negative consequences for new immigrants to America who have fallen afoul of these FBAR and offshore income reporting requirements is even more sad. Unfortunately, Congress and the IRS have lost the plot in their jihads (my hyperbolic characterization!) against offshore accounts. You could do a whole program on FATCA which I can guarrantee you, 99.9% of your audience knows nothing about.
Anyway, just a note to thank you for your open willingness to not let characterizations drive your opinions and being open to new information and understanding.
I just posted this at IsaacBrock about another American Abroad I am in contact with.
Thought it might interest.
And just to disavow that this is a partisan issue. I would point out that Commissioner Shulman was appointed by Bush.
Finally, if you want to just get a glimpse of the international tax complexity issues, read the National Tax Advocate recent report to Congress. Nina Olson gets it. Congress, the Commissioner and the Administration do not!
Which he quickly responded to:
Thanks for the email and the kind words, I sincerely appreciate it.
@Roger I wasn’t implying that I was sad. I was responding to Saddened 123
I didn’t mean that Mitt is hiding money. Just the fact that he has a Swiss acc’t is being used against him. He won’t want to be associated with ex pat Americans.
@Chester12, Understand. Thanks. Yes, his opposition in this campaign will dig up the words Swiss Account grabbing at straws to try to discredit him, although as this article clearly states there is nothing secret about it or did he avoid reporting the interest it earned on his tax return.
But I agree that there are much bigger fish to fry in this election campaign so that neither candidate is likely to want to address the tax sitiuation US citizens abroad; the very mention of which could transform it into an Achilles heel in this political campaign. Although it is of vital interest to us, it would be a distraction to ;probably 95% of the US voters. Neither of them is going to take a chance with any distractions like this.
Well done, Peter, you covered the important points about taxation of US citizens abroad, the FBARs and the penalties for failure to report, and then gave an excellent summary of Roger Conklin’s story with the very important information about the effects on the US economy and balance of trade. I have hopes that listeners will understand that citizenship based taxation ultimately hurts them, not just us.
I was impressed by both Peters, and by the forthrightness of petetheplanner – in immediately setting out to understand the issue, in asking how he and his listeners could help, in working to grasp the situation, in bringing out the issues proactively…And our Peter for being willing to come forward in public, to be interviewed and to share your knowledge of the issues. We owe both of you a very large debt of gratitude. I felt better for a while, just for knowing that there was someone out there that was willing to hear us and understand – and not call us evaders, cheats, and traitors. And now there is a Youtube IBS channel, and a record of the interview – for posterity.
Will the TAS tweet it? I hope so.
@Roger When even my own parents looked at me in cold incomprehension when I explained that I was thinking of renouncing my citizenship, I think the rest of the country is probably not going to be too sympathetic.
From everyone else’s point of view, only rich people leave the US. And they get to do that because being American is what gave them the privilege and the opportunity to be able to do so. Or so they think.
Great job, Peter! Too bad there wasn’t more time to talk further, but you covered the main points well. It’s good to see that the other Peter was so receptive to hearing about this issue. Hopefully more media personalities in the US will become interested.
Thanks to both “rocks.” I especially liked the aside towards the end about how money and economic development possibilities were lost in Brazil because the US expected taxes and Brazil had currency controls in place, thanks Peter(s)and Roger. I also hear that Dunn (Canada Dunn) is an ecologist because he seems to walk a lot (hear the background in the interview). I am very happy that you both participated in this interview and I thank you (both rocks).
Reblogged this on Stop Unconstitutional Double Taxation and commented:
Peters are discussing (rocks) I would like to live in Indy now.
AA Gentleman’s Raper: The surprise and shock of your parents when learning you had decided to renounce American citizenship is indeed tragic but it is understandable. When I was living and working abroad, friends and relatives just could not understand why anyone with a sound mind would ever want to live in any other country other than the United States. After all, it is a country where people from elsewhere in the world often risk everything to make it to the US and become residents of this great country.
Sadly many honestly believe that the world really ends at the US border. That is what they have been taught to believe from as far as they can remember. And that is precisely why the problems resulting from Citizenship based taxation of US citizens living abroad are so difficult to comprehend by the the average man-on-the-street in the US, and why most legislators don’t want to get involved in correcting this injustice, lest is negatively affect their re-election when their current term expires. And unfortunately for us that is a risk I don’t know even one who is willing to take.
Wow nice interview, it makes me sad 🙁 that you’re not an American anymore and had to give up your American citizenship, but I’m kinda understanding that it can be extremely tough, expensive, and way not worth it.
@Roger, I think politicians would rather people who obtained another citizenship automatically lost their US citizenship. The problem is the court system decided it was unconstitutional and nobody in government thought to find a way to make it easy for people to renounce or to even know that they needed to.
@omghe, politicians DID want people to lose citizenship automatically (and I wish I did ), in the 1952 act there were a number of ways to lose citizenship automatically, voting in foreign election, foreign military, remaining outside the US. When citizenship based taxation was started, these automatic loss mechanisms were still in place. If the courts had not changed the act, I would have automatically lost my citizenship many times over. The citizenship act and taxes are now out of sync.
@ WhoaIt’sSteve Thanks for the sentiment. I too regret having to give up my birthright. But then, I have to do everything I can to protect my family here in Canada. I have four kitties that depend on me, and a wife.
re “four kitties that depend on me”. I like that in a person!
Great Interview. Loyal den father and husband!!