FATCA is NOT about PROTECTING America’s Tax Base.FATCA is about EXPANDING America’s Tax Base into the Economies of Other Nations
Yesterday an article made the rounds with an interesting idea;
THE ONLY REFUGEES WHO SHOULD BE ENTERING THE UNITED STATES ARE THE AMERICAN REFUGEES WHO FLED OBAMA’S AMERICA…. WE HAVE THAT DUTY TO OUR FELLOW AMERICANS”
In 5 years I have never heard anyone come forward with this attitude. In spite of having no desire to go back myself, I do appreciate that somebody is finally showing some concern for us. It’s refreshing!
But they didn’t give up their citizenship because they all of a sudden became un-American; no, they did it because of a law that has turned living and/or working abroad into an expensive, onerous, bureaucratic nightmare for the ordinary American citizen.
FATCA and its ridiculous system has ensnared law-abiding American expats into a constant battle with the IRS, all over the day-to-day activities all citizens engage in.
A well-known citizenship lawyer clarifies that after years of confusion about tax, penalties, IRS programs and information reporting forms, to add insult to injury, FATCA is not even about tax! Read John’s interesting observation; it is our governments who did not understand what they signed by implementing the IGA’s and they need to reverse this before each country loses too much capital due to unfair citizenship taxation.
Thanks for drawing attention to #FATCA and #Americansabroad.
It has become clear that FATCA is is NOT about identifying American residents who engage in tax evasion. In other words;
FATCA is NOT about PROTECTING America’s tax base.
FATCA is about EXPANDING America’s tax base into the economies of other nations.
— Citizenship Lawyer (@ExpatriationLaw) February 1, 2017
The United States believes that any person “Born In The USA” (and therefore a U.S. citizen) is required to pay taxes to the United States REGARDLESS OF WHERE THEY LIVE IN THE WORLD AND REGARDLESS OF WHERE THEIR INCOME IS EARNED. This requirement exists with respect to income earned outside the United States.
Think of it: the mere fact of a U.S. birthplace obligates somebody to pay taxes to the IRS for life! Somebody “Born In The USA”, who may have left the United States as a child, has a lifetime tax obligation to the United States.
The United States is currently expanding it’s tax base into other nations. It does so by hunting for people who (1) were born in the United States and (2) live in other nations. How is “FATCA Hunt” taking place? How does “FATCA Hunt” actually work?
In practical terms, the USA is forcing non-U.S. banks to “hunt” for people with a U.S. place of birth. Once identified their existence is reported to the IRS. The vast majority of people identified are actually citizens and residents of other nations. For example, on or about September 30, 2016 the existence of approximately 315,000 Canadian bank/brokerage accounts of (mostly) Canadian citizen/residents were reported to the IRS. Why? Because the account holder had a U.S. place of birth or were otherwise under suspicion of having a “U.S. connection”. Most of these reported do NOT consider themselves to be U.S. citizens at all.
Citizens of some European countries (example France) are not able to maintain bank and financial accounts because of a U.S. place of birth.
So, yes people are severing any possible ties to America. Believe me, if you were being “hunted” because of a U.S. place of birth, you would do the same thing! If severing that “U.S. tie” includes “renouncing U.S. citizenship” (which it often does), this is perfectly understandable.