Interesting New York Times article by Brian Knowlton which includes the following quote:
The growing pressures on American expatriates stem largely from two events: the Sept. 11 terrorist attacks, which led to new United States Treasury Department regulations aimed at cracking down on money laundering and on the use of the international banking system by terrorist groups; and the financial crisis of recent years, which similarly brought a crackdown on Americans exploiting banking secrecy in countries like Switzerland to avoid paying taxes.
But as a result, and with the Internal Revenue Service devoting substantially more resources to its overseas operations than before, many ordinary expatriates say tax filing has become onerous and many banks are wary of doing business with them.
Presidential Commission Sought on U.S. Expatriates nyti.ms/ODgMj5 – Thanks Brian Knowlton – #FATCA #FBAR #OFFSHORE #americansabroad
— U.S. Citizen Abroad (@USCitizenAbroad) July 31, 2012
I note this comment from a US ambassador to Germany, Philip Murphy – who obviously doesn’t meet many ‘expats’:
from http://www.thelocal.de/politics/20120731-44045.html
…………
“Taxation without expat representation“
“However, on two issues dear to many Americans living in Germany –
taxation and representation – Murphy saw no changes on the horizon .
The United States is one of the few industrialized nations to require
its citizens to pay taxes on income earned globally, irking many expats
each year. And a recent enforcement drive to report foreign bank
accounts to the Internal Revenue Service has even caused some people to
take the dramatic step of renouncing their US citizenship.
But
the ambassador said he was unaware of any growing discontent among American expats.
“I don’t hear that a whole lot from folks,” he said. “I think people
overseas aren’t looking to take advantage in any way nor should they be
discriminated against.”
Murphy also poured cold water on the idea the United States might give
its expatriates special political representation in Congress similar to
how France recently elected parliamentarians for French citizens living
abroad.
“The French model I looked at with interest – we’re not going that way,”
he said. “We give our citizens around the world the opportunity to vote
absentee and that’s the way it’s going to stay.
””……………..
This Commssion will be a waste of 3 million dollars and Congressional time. I fully agree with the Ambassodor’s assertion that the U.S. has no intention of changing its taxation policy which would also as a consequence make FATCA irrelevant to overseas U.S. persons. It will just be a big public show that the Congress will use to placate the overseas community and utilize as a local public relations tool to say: “look, we tried to be reasonable we listened to their complaints.”
This ambassodor’s comments typify the mindset and no Commission can undo. If the Congress wanted to do the right thing it wouldn’t take a commission to do it. They know what the issues are, or at least they should know by now, but they refuse to acknowledge them because the U.S. is stuck in a time warp of their own making.
I can’t see any harm in getting on the radar. It may take a more balanced approach than the generally negative attitude we get from the press.
But who is it that feeds the press? Congressmen like Schumer, Casey, Grassley, Boehner and even the President. The United State’s German ambassador won’t even acknowledge our discontent and the Canadian ambassador has fallen mysteriously silent ever since his promise that grandmas don’t need to worry which was coupled with his statement that the U.S. is not irresponsible.
I expect no justice from this gang of thieves.
@recalcitrant, good point about Ambassador Jacobson http://en.wikipedia.org/wiki/David_Jacobson_%28diplomat%29 .
The US ambassador (Philip Murphy http://en.wikipedia.org/wiki/Philip_D._Murphy ) to Germany – and ex-Goldman Sachs banker (23 years, including in Germany, Asia, Switzerland, Austria, Central Europe) says he doesn’t hear/see/register any discontent from US citizens abroad, (willful blindness and ignorance). With that extensive international banking background, I find it hard to believe that he doesn’t know about the banking problems that expats in Germany and elsewhere in Europe are facing with FATCA, or that ordinary US persons abroad with their everyday German accounts aren’t hiding-money-laundering-criminals-etc. He would also know about the US banks being domestic tax havens for non-residents.
US Ambassador to Canada Jacobson would be fibbing even more obviously if he tried to make the same claim. Willful blindness too. Too bad it seems that no-one from the Canadian press has asked him point blank what his interactions with US expats here have been like. As he was previously a lawyer with an international law firm http://www.allgov.com/ViewNews/Ambassador_to_Canada__Who_is_David_Jacobson_90802, he must be aware of the privacy and sovereignty issues that FATCA raises. When he made the disingenuous claims that the IRS wasn’t out to get the average ‘Canadian grandma’, he knew perfectly well that US tax law terms like ‘reasonable cause’ and ‘willful vs. non-willful’ re FBARs would be far beyond what they could plead on their own, without expensive tax and legal assistance.
This is really good news to see these issues raising to attention. If the commission goes through, we should try to find out who the 15 members are so we can send them evidence, anecdotes, reasons explaining why it’s in everyone’s interest to support the ACA’s residency-based taxation proposal.
A democratic congressperson in New York, with a commission proposal for americans abroad, stating results could be achieved AFTER the election.
How obvious can a diversion be, so as to placate enough overseas voters to vote for their own demise the in following term. Looks like Schumer found himself a couple of lackies. The commission will be there to take minutes as expatriates are crucified. Perhaps the commission can also record the names and addresses of the people who write in.
of course, anything better than nothing
@Mark Twain: Maloney has made some efforts on behalf of Americans abroad so normally I’d be willing to give her the benefit of the doubt on something like this. Her cosponsor Mike Honda, in contrast … get outta town …
*What a mature government. Spends 5 years destroying the lives of its citizens abroad and then will set up a 2-year commission to study the question. Outer space to Earth: expatriates have a finite life and 7 years is a good chunk of it. This system of government, which enacts horrible laws and rules and then says, “Never mind,” is crazy.
I appreciate the effort, but, a study that begins after my next taxes are due, going on through the first 2 years of FATCA phase 2 implementation is only a recording of the misery. I shouldn\t criticize her efforts, I should criticize her lack of authority received from others.
Non-story. More Kabuki dance. If it happens at all, that is.
@badger, What planet is that man living on? Arrrggghhhhh!
My .02 here: The idea has a lot of potential and partially meets one of my requests that some sort of official dialogue be started between Americans abroad and the home country. So I support it and I wrote Maloney this morning to tell her so. If you want to you can do the same. Her contact information is here and she has a special form for folks from outside her district to comment. (And her website BTW does take into account overseas constituents with specific instructions on how to send her email and that is far cry from what I’ve seen on other U.S. pol’s websites.)
https://maloney.house.gov/contact-me/email-me
To track this bill: http://www.govtrack.us/congress/bills/112/hr6263
H.R. 6263: Commission on Americans Living Abroad Act
112th Congress, 2011–2012
To establish a commission to study how Federal laws and policies affect United States citizens living in foreign countries.
Referred to Committee
————————-
Sample letters of support available here:
http://www.aaro.org/representation/363-build-support-for-the-commission-on-americans-living-abroad-act
——————-
Another site noting this effort:
http://www.globalemploymentlaw.com/2012/08/articles/editors-news-picks/bill-addresses-challenges-facing-us-expatriates/