By Patrick A Heller on July 19, 2013 9:10 AM
Commentary on Precious Metals Prepared for CoinWeek.com …..
A number of financial advisors who are concerned about the coming financial crises in America have recommended transferring some assets beyond the borders of the United States. For prudent wealth management, it is an option worth consideration.
From the article:
“It has been a standard development throughout history that any country’s government that made it difficult for its citizens to move assets beyond the borders of the nation descended into totalitarianism. If it didn’t eventually allow free capital flows, then that government ultimately failed. Just because the nation may be the United States of America does not mean it is exempt from this historical pattern.”
Well, there you have it.
@shuntrata
But the US is exceptional-because they say so.
The US is indeed exceptional. Exceptionally bad at many things!! The US is surpassed by many other countries in just about every measure that is Important to a society. But they continue to indulge in insular self-delusion and a belief in their own exceptionalism that defies any logical analysis. So many things have been lost, even such a basic ingredient as true democracy. It is surprising that there has not been a grass roots groundswell of revolt. Political leaders are incapable and unwilling to cause real change. It can only come from the people and not just at the polls.
@Joe Zinga
So true, it’s like they’re the Titanic on a collision course with an iceberg of their own making. Yikes, I should be saying “we’re”. Mayday, mayday, abandon ship!
@bubblebustin,
Look at Detroit. Does any other ‘developed’ nation routinely have some of its largest cities either bankrupt or on the verge?
http://www.cbc.ca/news/business/story/2013/07/18/detroit-bankruptcy.html
http://www.businessinsider.com/americas-most-bankrupt-cities-2010-12?op=1
http://www.theverge.com/2013/7/18/4536118/detroit-becomes-largest-american-city-to-file-for-bankruptcy
http://www.nytimes.com/2006/12/31/nyregion/31default.html?_r=0
http://nicosiamoneynews.com/2013/06/21/uk-wealth-managers-turn-americans-away/
‘UK wealth managers turn Americans away’
“American citizens living in the UK are struggling to get financial advice as private client and wealth managers turn away clients with links to the US.”……………..
“..“US citizens resident in the UK have seen their options – in terms of financial advice – significantly reduced by Fatca, with a number of private banks quietly showing their US clients the door,”…”
……
“The new rules are affecting thousands of Americans living in the UK. There are 126,330 US passport holders resident in England and Wales, of whom 48,062, or 38 per cent, live in London, according to data released by the Office for National Statistics.”……….
http://nicosiamoneynews.com/2013/06/21/uk-wealth-managers-turn-americans-away/
@badger
Couldn’t help but notice that a Ross Badger was quoted in the article, relative of yours?
Kidding aside, the FATCA genie has left the bottle and one has to wonder if Canada is prepared. Our RBC Dominion investment advisor knows our situation and has consulted with their legal department and he seems to have a grip on how do design our portfolio vs showing us the door. Let’s hope that we aren’t too one day viewed as pariahs as we are far from meeting the $2M threshold.
About Detroit. This is truly horrendous. Yes, one has to wonder which is next and with capital flight from the US how bad it will get. Will America suffer a big “sell off”?
@badger, what worries me the most about Detriot,is that it only has half of the debt per person as the US government!
@bubblebustin; nope, the Badger in the article isn’t related!
@swisspinoy; at least we can feel pretty confident that Detroit hasn’t yet been given extraterritorial powers sufficient to tax those that don’t actually live there or use their services – unlike the US federal government’s plan to tax the planet.
Although, New York City has an income tax of its very own;
“New York City is one of the few cities in the country that have their own income tax”
……………
“New York City Income Tax
New York City has a separate city income tax in addition to the state income tax for individuals. New York City income tax rates range from 2.907% to 3.648%. The tax rate you will pay depends on your income level and filing status. The New York City income tax is based on your New York State taxable income, so there are no city-specific deductions.” ………
http://taxes.about.com/od/statetaxes/a/New-York-City-taxes.htm
“Personal Income Tax
New York City charges a personal income tax to City residents however, the tax is administered and collected by the New York State Department of Taxation and Finance. Most people living outside the City are not subject to NYC personal income tax. However, non-city residents who are Employees of New York City must file Form 1127 and pay taxes each year. The amount is equal to the personal income tax they would owe if they were City residents. ” http://www.nyc.gov/html/dof/html/forms_reports/forms.shtml#personal
@Badger, I often wonder if the U.S. will at some point try to re-impose worldwide taxation on its former citizens (even with CLNs) by still considering them U.S. Persons for tax purposes. They could go via the back door by perhaps reducing the number of qualifying days spent each year in the U.S. or even declare many CLNs void if they believe that many renounced under duress. Just food for thought.
Most of the states that impose income tax do so on those they deem domiciled there, irrespective of whether they reside there or (for most of them) have set foot in the state during the tax year. New York, Illinois, California and many (mostly “industrial”) states exclude those who have been absent more than 30 (in some cases 45) days. DC, Virginia and Maryland are particularly tenacious. States’ definition of “domicile” are such that it is easier to claim transfer of domicile to another US state than overseas; but in all cases their definitions are far less “sticky” than that of England and other UK legal systems.
Huckaby v. New York State Div. of Tax Appeals, 4 N.Y. 3d 427, 829 N.E.2d 276, 796 N.Y.S.2d 312, aff’g 6 A.D.3d 988, 776 N.Y.S.2d 125 (3d Dept. 2004) affirmed the right of New York State (and City) to tax telecommuters.
“Tax residence” is a moving target, with more and more jurisdictions (UK: http://www.hmrc.gov.uk/international/residence.htm Canada: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html ) and doubtless others seeking to include in the tax net those with continuing family, personal and business ties to the country and using whatever links are available to them in an increasingly transparent public domain: driving licenses, memberships, credit and banking…
Detroit had already begun that long ago. In 1986, there was a 2.25% tax upon people who worked in Detroit but lived elsewhere. By changing to a job in the suburbs, workers instantly got 2.25% more in their pockets.
The city was desperate for Money. It helped moved Corporations to leave Detroit city faster.
Detroit is just the largest city to have declared bankruptcy so far, and there are others on the brink as well – Houston, for example, despite the fact that Texas is one of the “healthier” states financially and employment-wise.
The entire state of Illinois is a financial mess but its history of corrupt governing shouldn’t make that a surprise.
There was a lovely article in The Slate about how Americans are the least healthy of all the industrialized nations (but only the second fattest now). They have an infant mortality rate that rivals the sub-Sahara and child poverty rates that are shocking. Educational, income and mobility disparities between haves and sorta-haves and have-nothings is among the worst in the world.
The last 30 years has seen a steady return to the conditions of the turn of the last century that precipitated the run up to the Great Depression – the idea that free for all capitalism is the best way to go, workers are little more than indentured servants, that wealth is better hoarded by the few and that the social good should be left to churches and charities. When I think about it, that was what the beginning of the 1800’s looked like too, but back then – there was a big wide world to escape to and that’s not the case anymore.
I still think the best idea for those not born in the US is to challenge the notion that the US can impose its citizenship on you by default. The US Constitution doesn’t support this notion at all and the fact that Congress has to go through immigration to tweak this leads me to believe that it can be challenged legally. Immigration is an active choice. People who are not choosing to act on their USC claims don’t fall under this umbrella. Breaking the USG’s sneaky co-op of other countries citizens would be quite the victory.
I think now the problem is that most countries don’t understand that the USG’s position on not officially recognizing dual citizenship is just another way of saying “we don’t recognize your sovereign right to grant citizenship to people born within your borders” b/c for all practical purposes this is true. The USG regards all “duals” as simply USC’s and ignores their dominant (chosen or by birth) citizenship. I am uncertain, however, how one could go about challenging this through a court system.
The day is fast approaching when USC’s in countries outside the US will have no access to banking/financial resources personally. Some lucky ones will have spouses who will protect them financially, but that is no way to live one’s life in the long term. And I don’t think Canada will be an exception to this. It will also hamper or eliminate the ability of USC’s to find work outside the borders of the US.
@monalisa, they are intent on taxing the world. The US believes that the rest of the world owes them tribute – and any pretext will do.
Good to see you posting again, and glad to hear (on another thread) that it is going well for you.
@yoga girl,
I didn’t know that about Houston.
A strange way to run a country.
No wonder the US is rabidly pursuing other countries – their citizens and residents – to pay its own domestic bills.
What an overabundance of hubristic arrogance, as in “pride goeth (goes) before a fall” (from the biblical Book of Proverbs, 16:18) http://en.wikipedia.org/wiki/Hubris
Americans are weird.
“Americans will put up with anything provided it doesn’t block traffic.” – Dan Rather
@YogaGirl, many Americans enjoy traffic jams too. They oppose rails, oppose bicycling and oppose pedestrian-friendly cities. This is,in fact, my main issue with living in the US.
SwissPinoy, nah, they hate traffic jams or why would they put up with the endless construction to build more freeways? What they hate about alternate transportation modes is the lack of “freedom” and the ability to isolate themselves from each other. In a car, they have the illusion of control and they can avoid interacting with “undesirables”. It also smacks social democracy. Public transport is a great leveler. Americans like their class system as it is.
Yep, it’s getting to be where if someone wants to live outside the country for any reason, other than for short visits, that they may as well just leave their passport at the border and go stateless in order to have any hope of a semi normal life.
That will, unfortunately, not be an option for those with any status other than as a permanent resident in the nation they wish to preside.
This ‘wall’ that the Americans are trying to put up around themselves is a type of wall that the East Germans could only dream about back in their day.
@YogaGirl
They enjoy socially isolating themselves from each other so much, that they even have a hard time even holding a normal and honest conversation with people sometimes.
And yes, heaven forbid if you don’t own a car. You must be a real loser if you don’t own a car! Owning a car is such a status symbol that sitting in traffic, sucking up carbon monoxide with the rest of the idiots, and yelling vile obscenities at each other, is oh, so much better, than putting on a pair of shoes and walking a block for a bottle of pop. Even if that means the next ticking time bomb snaps, yanks you out of your vehicle, and then blows your head off. (and likely claim a ‘stand your ground’ defence in court, too)
But, what if you don’t want to own a car? My God! What are you, a mangy hippie?!? That is so against the accepted norm over there that they may as well open up an FBI file on you. You might very well be a socialist lone wolf terrorist in their eyes.
Bleccch! America sucks!
@mjh49783 luckily statelessness is an option for U.S. citizens, it saved me from losing my bank accounts and it’s also given me time to really decide if I want to be a citizen of the country I currently have PR in, taking a citizenship oath should not be taken lightly in my opinion, it seems the main reason many do it is for a good travel document and not much else.
@statelessman
That is true, but the US could take that away at any time.
@statelessman –
This is intriguing, please tell more?
Or if you’ve posted your story already direct me to it? (I’m fairly new here)
Not looking to be stateless but it seems very unusual, would be interested in the tale.
I’ve been contemplating the idea of going stateless myself, but I just don’t know….
I could just simply relinquish once I’ve earned Canadian citizenship and save me the $450 renunciation fee. Meanwhile, my wife and I are planning to move back north in the near future. We just can’t deal with Southern Ontario anymore. $450 for a CLN at this point seems like a lot to swallow right now when moving expenses have to be considered.