UPDATE: JUNE 14, 2015
from JakDak:
The Senate Finance Committee chairman, Senator Orrin Hatch (R-UT), has established working groups to study different aspects of the tax system. These working groups are scheduled to report back to the committee by June 26.
Tax Policy Update
June 09, 2015[Interesting: NUMBER OF THE WEEK: 61. The number of countries that have signed on to implement the OECD’s multilateral agreement for the automatic exchange of tax information, in conjunction with the ongoing Base Erosion and Profit Shifting (BEPS) project. Although the U.S. has committed to implement the standard, it has not yet signed onto the formal agreement (the “multilateral competent authority agreement”), which lays out in detail what information will be exchanged, the timing and method of exchange, and how signatories will work together to ensure compliance. Signatories to the agreement will begin exchanging information as early as 2017. Additionally, the OECD released on June 8 its “Country-by-Country Reporting Implementation Package” developed under the BEPS Action Plan. Under the plan, which the Treasury Department has said it will implement for the 2016 fiscal year, multinational companies are required to aggregate and report information annually regarding where they do business, the global allocation of income, and amount of taxes paid, along with other information that will allow taxing authorities to more closely examine multinationals’ tax practices. The release of the package coincides with the 2015 OECD International Tax Conference in Washington, D.C., this week where OECD representatives are expected to review and discuss key initiatives under BEPS.]
SPOILER ALERT: Comprehensive Tax Reform Unlikely in 2015. In an interview last week, Senate Majority Leader Mitch McConnell (R-KY) outlined a busy legislative agenda between June and August recess: passing a highway bill, cybersecurity legislation, No Child Left Behind, and the Toxic Substances Control Act. Tax reform, however, is conspicuously missing from the list. “We’re certainly not going to be able to be doing big, comprehensive tax reform with this president,” McConnell said. Tax reform optimists have been eyeing the highway reauthorization bill as a potential vehicle to move a limited set of tax reform measures, but according to McConnell, the bill might instead be better suited to pick up a different legislative passenger—the reauthorization of the Export-Import Bank. McConnell believes the highway bill would provide the best opportunity to reauthorize the bank, which is set to expire June 30.
The inability of the Senate Finance Committee Tax Reform Working Groups to meet their original May 31 deadline to report recommendations to Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) only adds to the general pessimism. The international tax working group may offer the only glimmer of hope, with reports that it has made the most progress in hammering out detailed recommendations. The working groups are now aiming to deliver their reports before Congress departs for the July 4th recess.
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UPDATE: MAY 25, 2015
Em’s comment to JakDak:
I’m not sure of the where for the SFC recommendations but the when has been delayed:
http://thehill.com/policy/finance/242916-senate-tax-reform-groups-get-more-time
The Senate Finance Committee’s leaders are giving tax reform working groups some more time to formulate their recommendations.
Finance Chairman Orrin Hatch (R-Utah) and the panel’s top Democrat, Sen. Ron Wyden (Ore.), had hoped for recommendations by the end of May.
But in a statement Thursday, the two senators said that the working groups made it clear that they needed extra time to do the job right. The panel will set a new deadline after lawmakers return from next week’s recess.
“It is our hope these bipartisan working groups will use this extended time to finalize their recommendations for tax reform and produce in-depth analyses of options and potential legislative solutions,” Wyden and Hatch said in a statement.
etc.
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Shadow Raider says
April 29, 2015 at 6:39 pm
The Senate Finance Committee just released the comments sent by the public on tax reform. As expected, there are lots of comments about CBT and FATCA.
http://www.finance.senate.gov/newsroom/chairman/release/?id=3b14e94b-69f9-41e2-9fd3-7d191971b7ee
Hatch, Wyden Release Public Input on Bipartisan Tax Reform
Over 1,400 Submissions Made to Working Groups
WASHINGTON – Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) today released over 1,400 submissions from stakeholders on how to best to overhaul the nation’s broken tax code. In March, the Committee sought input from the public in an effort to provide additional data and information to the Committee’s bipartisan tax working groups, which are currently analyzing existing tax law and examining policy trade-offs and available reform options within each group’s designated area.
“We thank the stakeholders and public who provided us with this valuable data and input,” Hatch and Wyden said. “These submissions have equipped us with the ability to better evaluate how reforming the tax code will affect both American families and business of all kinds. As our bipartisan groups work towards producing substantive recommendations on how to reform the tax code, they will now be able to consider these valuable ideas.”
All comments received by the Committee that met submission requirements were made public.
Submissions can be found below. Total submissions to each bipartisan tax working groups are as follows:
Individual Income Tax – 448
Business Income Tax – 332
Savings & Investment -128
International Tax – 347
Community Development & Infrastructure – 207
Each of the five bipartisan working groups is currently working to produce findings on current tax policy and legislative recommendations within its area, with the goal of having recommendations from each of the five working groups completed by the end of May.
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Thanks, Shadow Raider, for alerting all here. There will be many Brockers reading, starting with the submissions (not all by individuals) to International Tax.
Back to the subject “Senate Finance Committee posts submissions”
Where will we find the the recommendations that should be out this week ?
Does Italy represent expats via seats in Parliament ?
Just talked to Australian Treasury
Write to Treasurer re situation
J.Hockey.MP@aph.gov.au
@ JakDac
I’m not sure of the where for the SFC recommendations but the when has been delayed:
http://thehill.com/policy/finance/242916-senate-tax-reform-groups-get-more-time
Italy reserves seats in its Parliament for Italian expatriates, with twelve members of the Chamber of Deputies and six in the Senate representing an Overseas constituency.
http://en.wikipedia.org/wiki/Reserved_political_positions
Let Niels know we appreciate his help
Niels will meet with the US Treasury in June with an Aussie delegation, to push again for tax relief.
Efforts to apply pressure in Congress and elsewhere are also helpful and appreciated.
Niels Marquardt
U.S. Ambassador (ret),
Chief Executive Officer
P: 02 8031 9000 E: nielsmarquardt@amcham.com.au W: http://www.amcham.com.au
Just sent to these committee members via contact care to join ?
New survey finds US expat voting could impact 2016 Presidential Election – See more at: http://globenewswire.com/news-release/2015/05/26/739115/10135930/en/New-survey-finds-US-expat-voting-could-impact-2016-Presidential-Election.html#sthash.sPw9yVYL.dpuf
Committee Membership
Majority Members (Republicans)
Member Name DC Phone DC FAX Contact Form
Orrin G. Hatch (R-UT) [Chairman] 202-224-5251 202-224-6331 http://www.hatch.senate.gov/public/index.cfm/email-or …
Chuck Grassley (R-IA) 202-224-3744 202-224-6020 http://www.grassley.senate.gov/constituents/questions …
Mike Crapo (R-ID) 202-224-6142 202-228-1375 http://www.crapo.senate.gov/contact/email.cfm
Pat Roberts (R-KS) 202-224-4774 202-224-3514 http://www.roberts.senate.gov/public/index.cfm?p=Emai …
Mike Enzi (R-WY) 202-224-3424 202-228-0359 http://www.enzi.senate.gov/public/index.cfm/e-mail-se …
John Cornyn (R-TX) 202-224-2934 202-228-2856 http://www.cornyn.senate.gov/public/index.cfm?p=Conta …
Richard Burr (R-NC) 202-224-3154 202-228-2981 http://www.burr.senate.gov/public/index.cfm?FuseActio …
Rob Portman (R-OH) 202-224-3353 202-224-9075 https://www.portman.senate.gov/public/index.cfm/conta …
Pat Toomey (R-PA) 202-224-4254 202-228-0284 http://www.toomey.senate.gov/?p=contact
Dan Coats (R-IN) 202-224-5623 202-228-1820 http://www.coats.senate.gov/contact/
Dean Heller (R-NV) 202-224-6244 202-228-6753 http://www.heller.senate.gov/public/index.cfm/contact …
Tim Scott (R-SC) 202-224-6121 202-228-5143 http://www.scott.senate.gov/contact/email-me
Minority Members (Democrats)
Member Name DC Phone DC FAX Contact Form
Ron Wyden (D-OR) [Ranking Member] 202-224-5244 202-228-2717 http://www.wyden.senate.gov/contact/
Charles E. (Chuck) Schumer (D-NY) 202-224-6542 202-228-3027 http://www.schumer.senate.gov/Contact/contact_chuck.cfm
Gary Peters (D-MI) 202-224-6221 Not Available None Currently Available
Maria Cantwell (D-WA) 202-224-3441 202-228-0514 http://www.cantwell.senate.gov/public/index.cfm/email …
Bill Nelson (D-FL) 202-224-5274 202-228-2183 http://www.billnelson.senate.gov/contact-bill
Robert Menendez (D-NJ) 202-224-4744 202-228-2197 http://www.menendez.senate.gov/contact/?i=OTH
Tom Carper (D-DE) 202-224-2441 202-228-2190 http://www.carper.senate.gov/public/index.cfm/email-s …
Benjamin L. Cardin (D-MD) 202-224-4524 202-224-1651 http://www.cardin.senate.gov/contact/
Sherrod Brown (D-OH) 202-224-2315 202-228-6321 http://www.brown.senate.gov/contact
Robert P. Casey, Jr. (D-PA) 202-224-6324 202-228-0604 http://www.casey.senate.gov/contact
Mark R. Warner (D-VA) 202-224-2023 202-224-6295 http://www.warner.senate.gov/public//index.cfm?p=Cont …
Full contact links
Committee Membership
Majority Members (Republicans)
http://www.hatch.senate.gov/public/index.cfm/email-orrin
http://www.grassley.senate.gov/constituents/questions-and-comments
http://www.crapo.senate.gov/contact/email.cfm
http://www.roberts.senate.gov/public/index.cfm?p=EmailPat
http://www.enzi.senate.gov/public/index.cfm/e-mail-senator-enzi
http://www.cornyn.senate.gov/public/index.cfm?p=ContactForm
http://www.burr.senate.gov/public/index.cfm?FuseAction=Contact.ContactForm
https://www.portman.senate.gov/public/index.cfm/contact-form
http://www.toomey.senate.gov/?p=contact
http://www.coats.senate.gov/contact/
http://www.heller.senate.gov/public/index.cfm/contact-form
http://www.scott.senate.gov/contact/email-me
Minority Members (Democrats)
http://www.wyden.senate.gov/contact/
http://www.schumer.senate.gov/Contact/contact_chuck.cfm
http://www.cantwell.senate.gov/public/index.cfm/email-maria
http://www.billnelson.senate.gov/contact-bill
http://www.menendez.senate.gov/contact/?i=OTH
http://www.carper.senate.gov/public/index.cfm/email-senator-carper
http://www.cardin.senate.gov/contact/
http://www.brown.senate.gov/contact
http://www.casey.senate.gov/contact
http://www.warner.senate.gov/public//index.cfm?p=ContactPage
@ JakDac
Good work! This will be the year of the expats’ discontent and in 2016, one potential president (and his vice), 34 potential senators and all 435 potential representatives should take heed of the potential effects of overseas votes.
From JakDac:
Seems action is being taken (“negative” “unfair” etc)
Subject: AMCHAM Australian Submission re June 2015 trip to USA: Letter – U.S. Department of Treasury
Via contact links Committee Membership they all have link now
AMCHAM Australian Submission re June 2015 trip to USA: Letter – U.S. Department of Treasury
http://isaacbrocksociety.ca/wp-content/uploads/2015/05/Letter-U.S.-Department-of-Treasury.pdf
Finance Committee Chairman Orrin Hatch (R-Utah)?!!! Isn’t that like having a venomous snake in the rabbit hutch? He’s the voice of the “revoke the passports of all those who refuse to pay taxes”…front. I wouldn’t trust the bastard as far as I could throw him.
Anyone want to start a betting pool as to the outcome of the SFC deliberations? While I lay awake on yet another sleepless night as the 1040 filing deadline nears, it occurred to me that there are three possible outcomes to all the submissions regarding US persons abroad. A large number of the most emotional submissions emphasized US accounts being closed or refused, businesses refusing to hire Americans, etc. I believe Orrin Hatch and his Merry Gentlemen will come up with one of three recommended changes to the tax code in response:
1) Repeal FATCA, eliminate FBARs, switch to RBT. (Ha ha ha ha ha ha ha; in your dreams…if you can even fall asleep, unlike me);
2) Some sort of Same Country Exemption for FATCA and maybe FBARs, based on a bastardized version of the Democrats Abroad model, but requiring more paperwork than they proposed;
3) New draconian penalties against FFIs and ‘foreign’ businesses who reject Americans. Such measures will have to be initiated in the form of an official complaint to the IRS by a US citizen, which will require that USC to prove tax compliance for the past decade, provide a detailed accounting of the source of every cent of the money he/she attempted to deposit, fill out a 20-page list of charges against the FFI which includes the names of all officers of that company and which brand of underwear they wear, and about 15 other forms that have no consequence whatsoever but are so obtuse that only a tax preparer can fill them out, with penalties of $10,000 per form for any errors. Once submitted, the IRS will take 12-15 months to investigate, and then slam the FFI with penalties of $100,000 per 6-hour period during which the US person was denied an account. And their officers will be arrested and extradited to the USA. As will the US citizen who made the complaint, since he was probably laundering money anyway.
I’m betting on Option 3, as it is more consistent with normal IRS practice and Hatch’s track record.
@Barbara
1. I agree… that happening is the same chance I will learn to cook
2. More paperwork… more paperwork… make an oops… u are screwed worse then u were before
3. Nope… totally not going to happen…. why would the US give a rat’s behind if we can save, invest, or work outside the US… u give them more credit then they will ever deserve… Foreign gov’ts are doing all the work for the US for free…. All the money used to do all this work is on the foreign gov’t… US don’t have to spend a dime of their own money to do any of the work… Hopefully the US will get a flood of expats returning to the US to receive social services…. cause that is the only thing I can see happening that will make the US sit up & pay attention….
I’m not sure US_Foreign_Person read through the entirety of Option 3. It’s the bit about needing to list the bank executives’ brand of underwear that will be the biggest catch, making Option 3 unworkable!!!
@US_Foreign_Person: The US may not give a rat’s ass whether we can save, invest or work outside the Homeland. But their line is that FATCA is not causing Americans to be denied financial services. Since the evidence is against them, I seriously, hand-on-heart believe that the US government will attempt to remedy the situation…in the worst possible way. Not by making the law itself less draconian, but in America’s usual manner of doling out even more threats and punishments, this time against institutions which dare to discriminate against Americans.
They may not ask for underwear brand, however.
I’d like to add a few more options:
4) Keep FATCA, FBAR and CBT in general, but allow nonresident citizens to “opt out” on an individual basis, with complex rules, paperwork and an exit tax (similar to current system but without renouncing citizenship);
5) Briefly mention RBT as a possibility, but not conclusively recommend it or provide any details;
6) Completely ignore the subject.
I’m betting on 5. That’s what they have been doing all along.
I have been very reluctant bringing this up but here it is. What the SFC does at this point is irrelevant. The reason banks are shutting us out has nothing to do with us as clients. It is because by ignoring the sovereignty of every other nation on earth, international law and even its own laws, the US government has completely destroyed the trust it once enjoyed. Banks are shutting us out because the threat of having US Person clients is too great.
The Senate could correct this with legislation tomorrow but as the trust has already been destroyed, the well has already been poisoned. Banks will continue to refuse us services because the US can not be trusted to not implement similar madness in the future and apply it retroactively.
I am operating under the assumption that I have been fatally poisoned but it has yet to take affect. All my efforts are to protect my family as best I can with the time I have left with them.
One of my employers did not pay me last month. Why? This is the first payment of the new school year and they missed it last year too. Last year however, was my first year with them. It was my understanding that the missed payment was due to a clerical error in setting up the reoccurring direct deposit that caused the deposit deadline to be missed. Why would it happen again after a year? Who knows. I am hoping that I will get paid in cash tomorrow when I go into that school but the shadow of knowledge that one day my bank accounts will be closed looms large. Without this knowledge, I would be far less concerned about it. Missed payments by Japanese employers ( solvent ones anyways) are a rarity in my experience. This is just the second time it has happened to me.
Barbara,
Although I suspect too that ShadowRaider’s #5 option will probably be the “recommendation” of the SFC, my overall personal prediction is that the real “outcome” will be litigations.
@StephenKish
If we are speculating, then lets us consider what the government will do when it gets sued. Will it fight this to the end? Or will it understand that what it is doing actually is a violation of the charter/constitution ( I am also considering Bopp and the Reps Overseas) and begin to reconsider during the process? Do such decisions as with the NSA now also play a role in a new tendency towards righting a wrong? Do those who are against the law of Civil Foreiture also have a say in this conundrum? Will there even be any change? If so, will it perhaps only be in increments? Or a landslide? Or will it not go through at all and kick the charter/constitution in the face?
Because in the end – it is so much about all the laws being implemented which are unconstitutional both in America as well as in Canada. I am thinking that both lawsuits simultaneously might drive this home even stronger: what has been happening in the way of new laws in the past decade is going against all the ideologies that honourable men have built up as the basis of great and free nations.
I’ll go with Shadow Raiders #6 – continuing to ignore us, which will actually make things worse for us because of the ongoing escalation of the war on offshore tax evaders living in the US.
Nope, the SFC is going to recommend a move to RBT. That said, I suspect that the “devil will be in the details”.
@uscitizenabroad
So it will be a rumple stiltskin type deal
@george, I suspect it will be like this:
http://lexx.thebruce.net/poem/monty.html
or this:
http://en.wikipedia.org/wiki/Trial_by_ordeal
From Jak Dac:
He received by email this Ron Wyden *Message someone can send to the U.S. Senate: http://www.standtallforamerica.com/petition/usa-freedom-act/f/.
Jak says:
wouldn’t it be nice to have an adapted email sent out with details referring to expats? ALTERED SOMETHING LIKE THIS: