Is Obama picking Merkel’s pocket? Germany paid 656 million EUR to help America collect supposed 92 million EUR from dual US/German citizens. German bank customers each paid 12 EUR for the privilege of supporting Barack’s budget.
Do you suppose that we could immediately dispel any myth that Americans in America are sending their money to Germany to avoid taxation? I know it might be hard for a guy like Mythster Stack, but let’s try.
USA’s estimated FATCA take was 8.7 billion USD over 11 years (or 7.9 billion USD over 10 years). (Never mind that all of that supposed revenue disappears by lost taxation of US-owned foreign financial institutions) Knowing that “fair share” is a common theme of the Obama administration, Germany should be assumed to provide its per-capita share of FATCA income. (Well, then again, it could mean more, since, to Obama, “fair share” means that someone other than he or his hangers-on have to foot the bill for his largesse). Germany’s population is 1.16% of the non-US world population. Hence, the theoretical Obama FATCA take from Germany ought to be 91,640,000 USD. At the averaged exchange rates of the IRS itself, Obama’s FATCA Euro take out of Germany is a measly 74, 700,000 EUR.
(alternatively, let’s suppose that Germany’s “fair share” is as 1 country of the 190 countries of the world. This means that Germany might be contributing 41,600,000 USD / 33,800,000 EUR.)
This is a method of analyzing German FACTA implementation costs. German FATCA implementation was estimated to be 386 million EUR upfront, and 30 million EUR per year thereafter: 656 million EUR over a standard 10 years. Knowing that interest rates are near zero, there is no need to consider Present Values.
So, Obama required Germany to pay 656 million EUR so as to help USA get 74,700,000 EUR? Obama could have just done the greatest economic con ever done on another country. Obama enacted this con with LOADS of tax propaganda, calling countries such as Germany “offshore”, that Americans were sending their money to Germany in order to avoid taxation. In reality, all Obama was doing was to get Germany’s banks to identify the 109,000 Americans living in Germany.
Whaddya say we just stop here and let this ludicrousness stand for itself? Well, no, it all just gets worse.
Germany’s EU rep says that it has to “thank America for this (FATCA)” (at 49:00 of this video).
Germany also believes that it is going to get reciprocal information from USA, which ought to be worth a few deutschmarks? Yeah, right, Germany already started delivering up its data last year, and it is still waiting for that reciprocal data, as described in its IGA “The Government of the United States acknowledges the need to achieve equivalent levels of reciprocal automatic information exchange with … Germany. The Government of the United States is committed to further improve transparency and enhance the exchange relationship with the Federal Republic of Germany by pursuing the adoption of regulations and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal automatic exchange.” Dear Germany, other than the “r”, what part of “total bullshirt” don’t you understand?
As Germany waits each year for its reciprocity, it justs keeps paying 30 million EU each year. That’s 30 million every year til heck freezes over.
So how does this affect those poor schmucks that are resident in Germany? The German population at end of 2014 is available in many sources at 81,198,000 . This yields FATCA cost of 8.07 EUR per capita. Each German could feed 45 meals to a starving African for that amount. Or, that German could feel so happy to know that he has funded the US government budget for 0.0001 seconds. Which one do you think that a socially-conscious German would prefer to support? (well, yeah, I guess we all realize that Europe luvvvvvvs Obama).
How does this affect a German financial institution—what the US Treasury calls an “FFI”? (You know, those guys that lobbied their own German government to make an Intergovernmental Agreement with United States to make their submission go through more smoothly?) Well, as of Jan 2016, there are 4390 FFI’s. This yields their average FATCA estimated implementation cost at 149,000 EUR. That’s actually pretty cheap! It’s normally stated that “medium sized” FFI’s should expect costs of $100,000 to $500,000 .
We can look at the percentage of “adults”, which, with available statistics can only be considered as those above 15 (87%). Germany has no data, but in Italy, 2/3rds of the adult population are bank customers. This yields a per customer cost of (corrected 17 Feb) 17.11 USD or 13.91 EUR–for every German bank customer to subsidize the Obama lust for any money which he has not yet acquired.
And, well, what is an American worth in Germany? There are 108,845 of those pesky little American barstards nesting in the Fatherland. That makes each one of them worth 6027 EUR (note, this was corrected 15 Feb) . Hey, Barack! Germany has higher taxes than America! Most every US person living in Germany pays higher taxes to Germany! With the tax treaty, and with the Foreign Income Exclusions /credits, those little barstards don’t owe you one dime! How do you think that you are going to shake that kind of money out of them?
(new 17 Feb) Given the percentage of adults and percentage of adult bank customers from above, it is calculated that the cost of locating each account of those pesky Americans is 10,390 EUR.
Well, there could be a few German-citizen schmucks living in USA as expats. I suppose that Obama wants to find them, too. There ought to be a few of those pesky buggers with checking accounts back in the fatherland, from their devious history of once having lived someplace other than America. But, the U.S. census does not count them. So, one would have to surmise those numbers.
When you do the numbers, which neither Obama nor his 2010 Congress ever did, it just makes no sense. What we do know, however, is that Germany caved against America’s threat of 30% sanctions upon all of its common financial transactions. It can lead one to the conclusion that:
-Politicians in Germany have no balls
-Politicians in Germany have no brains
It just might be that Germany really is run by a bunch of farcking idiots.
p.s. Recently, it was pointed out as to where to find foreign-born population in the USA. 582,727 +/- 12,951 residents of USA are counted to have been born in Germany as non-US citizens Germans. This quantity is not significant (less than 1%) in the above calculations. Data can be found at
Note that, indeed, FATCA’s objective is also to locate foreign-born persons residing in USA. Like US persons living in Germany, Germans living in USA are required to file their FBARs & 8938’s and all of their other tax papers. Many of these persons have inheritances and savings and checking accounts from their former lives and for their current life. Perhaps they have summer houses or inherited family homes or checking accounts for supporting children who are studying in Germany. These persons indeed are due to report their situations to the IRS, yet they are far from “those offshore tax evaders” for which FATCA propoganda is claiming.
656,000,000 / (108,845 + 582,727 ) yields 949 EUR per the FATCA-indicia objects (US citizens in Germany + German-born persons in USA) .