Further to Just Me’s “HR 2299 Calls for Withdrawal of FATCA IGA Reciprocity Tool (DATCA lite)”,
Blaze reports:
We’re not free yet, but check Maple Sandbox for breaking news out of Washington.
James Jatras is reporting a “death knell” for IGAs and possibly for FATCA
Maple Sandbox — It’s Official, No American Reciprocity
Thanks, James Jatras. Thanks, Blaze. Thanks, Petros. Thanks to every Brocker who posts and comments and has added to this important discussion. We stand together against what is not right!
From Maple Sandbox:
Do they really see that FATCA is not the panacea — at great cost all round, that it would not rope in the true tax evaders, just the small minnows — and more US collateral damage?
Now, if only the US would come to their senses and change to Residence-Based Citizenship… and if we could all live in peace in the countries of our choice, reporting our incomes and paying our taxes to and for the countries that give us our benefits.
This is indeed sounding like good news for us….I still be relinquishing on July 15th…..
Read the complete post from Mr. Jatras. At a bare minimum this letter will make the world very very reluctant to sign IGAs. This is very very good news.
Like the man says “repeal FATCA”. This could be an epic battle between the kook-aid drinkers and the others.
Happy to say that Posey is my rep 🙂
@Bubblebustin, Is this one of those American miracles you were just talking about?
Posey: “It is clear that FATCA must be either substantially amended or repealed, and replaced with a cooperative scheme that penalizes actual tax evasion without harming the innocent.”
Very good news indeed. Note however that Obama can be expected to veto any such legislation.
I know it’s still a little premature, but I don’t remember the last time I was this excited! Thanks to all of you for passing this on, and for all your earlier efforts, dedication and persistence, especially petros and Mr. Jatras. Whoo-hoo! There is still at least some hope for reasonableness and justice.
Wow! Thank you James Jatras for this very hopeful news. I have to redraft an e-mail to my MP that I’ve been working on but I don’t mind a bit. Instead of complaining about the Canadian government’s secret negotiations I can switch the focus of my e-mail to please don’t think Canada is going to get reciprocity with the USA and here’s why. Now I have to wonder what kind of international “cooperative scheme” they will be dreaming up. We may be going into just a different phase of the same battle.
We need to keep in mind that under the “reciprocal” Model 1 IGA, Treasury promises foreign governments two things:
(1) nonresident alien bank interest reporting under existing regulations; and
(2) full FATCA-equivalent reporting of not only interest but of principle and equity, and not just by banks and credit unions but also by pension funds, stock and mutual funds, and virtually any other type of asset, plus more than 10% non-US ownership in any non-financial US firm.
We can also think of these as (1) token, partial “small” reciprocity and (2) genuine, fully FATCA-equivalent “big” reciprocity.
Treasury claims it can provide the “small” first kind of information now under existing authority. It’s not clear they can. That’s a fight that precedes FATCA, with Messrs. Posey, Boustany, Rubio, Nelson, Garcia, and many others having been opposing it for years. This is also the authority at issue in the federal suit by TX and FL banks. This is also the authority HR 2299 would abolish. Yes, getting HR 2299 passed is a tough task, first to get it though the Senate as well as the House, as well as a likely veto.
But even that “small” authority is still not the “equivalence”Treasury has committed to. Treasury also has promised to provide — if not immediately, then in time — the second kind, “big” reciprocity. That’s what Mr. Posey’s letter is telling Treasury they aren’t going to get. On that authority — which Treasury admits they don’t have — the political problem is reversed: it’s the Administration that has to figure out how to get it through a hostile House. Ain’t gonna happen.
Thanks, Mr. Jatras.
Listening again to the presentation you made at the Toronto forum was delightful.
I commented at the Globe and Mail http://www.theglobeandmail.com/news/politics/canadas-information-sharing-deal-with-us-under-fire/article12913617/comments/
Thanks for your further enlightenment to us here at Isaac Brock — and at Maple Sandbox, where this was first reported.
My and our appreciation for all you have done on this front.
“As noted in the letter, Congressman Posey is the chief sponsor of another piece of legislation with strong bipartisan support, H.R. 2299, which would abolish and prohibit existing regulations mandating nonresident alien interest reporting by U.S. banks and credit unions.”
Aren’t those “existing regulations” what Canada has ‘enjoyed’ the benefits of for years now under our treaty, and what Mexico has been striving to receive?
If that’s the case, do you think Canada would be willing to throw that one under the bus to kill FATCA?
@bubblebustin, You’re Bill Posey’s constituent? If you want, you may contact his office to schedule a meeting and I can meet him or his assistant on your behalf here in Washington. If he is going to introduce a bill to repeal FATCA, I’d like to ask him to include in it a repeal of the FBAR too (or at least of its penalties). If you agree, of course.
Seems like good news for you all. Even though I still think some of you guys are abrasive, I’m now thoroughly disgusted and ashamed with pretty much the entire US Federal Government, wish it was an election year! But anyway, I hope that the FACTA gets nipped in the bud, and we move away from the crazy rules and regs regarding Americans living abroad filing.
I admire you guys for trailblazing and adventuring into the wild foreignness, and if the US wasn’t intertwined and entangled with every other freaking country I’d probably be attempting to find a job abroad, but it’s not like it matters, you know, you can’t escape the Feds. At least here I’m comfortable, near my family, and making pretty good money. Just thought I’d send a little comment.
-WhoaIt’sSteve! 🙂
Yo Whoa! Nice to hear from you again. 🙂
@Shadow Raider
I didn’t think the day would ever come that I would have a lobbyist in DC, let alone by the name of Shadow Raider! Let me ruminate on this. Do know what the timeline is on when he would be able to introduce the bill?
@whoaitssteve
Put it into perspective: “abrasive” is a cooking apparatus filled with projectiles, which is not what you’ll find here.
However, thanks for the well wishes.
What helps US persons abroad is what helps ALL Americans. When is the US government going to see that for what it really is?
@Calagary 411…. Geez. I go for a hike for one day, and this breaks! Thanks for the good news. I will add this to the discussion I am having with a journalist out of Berlin tomorrow. 🙂 So, now to watch how good Lew is at stonewalling Congress. Is he as good as the last guy(s) at ignoring them?
@WhoaitsSteve…
Welcome back. Yes, some are abrasive just like the U.S. Hegemon. We all are pretty disgusted these days, Left, Right and Center! Happy to have you commenting again. If you like NSA spying, you will LOVE FATCA.
don’t forget to send it to your European connections if you are there. Just Me should be allowed the pleasure of delivering a copy to Svein.
@whoa – interesting comment.
Come on over here and enjoy the sappie-ness of 500 million co-dedependent addicts
http://www.guardian.co.uk/commentisfree/2013/jul/03/clapper-lying-snowden-eu-bolivia
p.s. The declaration of Independence was also written on July 1!!!!!
@northernstar, yes, I’m going ahead to relinquish now too. This IS good news and hopefully will lead to a repeal of this unworkable mess they have tried to create. The idea of going after whales who are actually “off shoring” instead of minnows should have been a given in any law they tried to enact. Instead nobody read what was in this and they just charged forward causing untold damages. That’s too bad for them.
Ha, ha, too late. The rest of the world likes the idea of sharing bank info about their citizens abroad and will not let the US now duck out of participation in one way or another. You sowed, now you will reap.
to all Brockers: thank you for this wonderful piece of news……if it happens. I am still going to renounce to protect myself and My UK family. Not renouncing would mean I am still prey and subject to ever changing diktats fundamentally affecting me from a country I haven’t lived in for almost 30 years and which is not my home.
I sent a copy to Sophie and she responded that she promises to follow it up
@SwedishCitizen, I also sent it off to Sophie’s staff and got a very hearty “Thank you!” 🙂
I spent a few hours yesterday reading all the over 350 comments on the Globe and Mail article, MapleSandbox and IssacBrock. The last thing I read was this breaking news. It gave me a peaceful sleep.
@AtticusInCanada, you were amazing in all your responses on the globe and mail article.
@Calgary411, I think your comment in the G and M about how are Canadian government should be standing up to the Us government is so correct. The USA should be going after their own residents who do avoid paying taxes banking offshore, while living in the USA.
Yesterday I wrote a passionate email to Justin Trudeau asking him to stand up to the USA like his father did while he was prime minister.
I want to thank all of you Blockers. If it were not for you all I would be a basket case. I found through Brock that I can relinquish and how to do it. I really was so happy to meet some of you in Toronto last month. If there is another meeting I want to be there. In the meantime, I shall continue to be on Brock and MapleSandbox To be aware of what is happening to us expats. I also am inspired to be more informed and involved in my Canada. I want to keep Canada Canadian, not an American territory. In Brock we are standing guard for ourselves and Canada. You all are so inspiring to me. Thank you forever,
http://www.ottawacitizen.com/opinion/columnists/Canada+good+America+truly+great/8613057/story.html – saw this in the Ottawa Citizen Online – made me want to PUKE!!!