Liberty and justice for all United States persons abroad

The Isaac Brock Society

Posted on by Posted in Ethics, Issues regarding US persons abroad, Law & Morality 170 Comments

UPDATED WED APRIL 26

videos are posted at youtube

ONLY PLACE TO GET AUDIO FEED AT THIS LINK

FATCA HEARING HERE

 
bitch bean

As Ms. Bean testifies to the insignificance of #Americansabroad, Dani’s uniform and passport are to her right. Yes, those of us abroad, only 4300 renouncing vs 730,000 coming in, simply do not matter. Noticeable large errors regarding foreign countries supposedly taxing their citizens when they leave (that is not what CRS is); not getting it clear that OVDI is the source of the collection, starting in 2009, before FATCA was even signed; US banks do not like FATCA, they don’t want to report like foreign banks required. Maybe someone should explain to Ms. Bean that Hillary was the shield of the other 47,500 that were not turned over.
 
 
Before adjourning, Mr. Meadows has asked each witness to come up with 3 ways revisions could be made that would address the issues heard about today. While we all want FATCA repealed, maybe for the sake of compromise, we could at least try the same……………….
****************************************************
Updates April 25, 2017!!
 
TESTIMONIES OF WITNESSES FOR TOMORROW’S HEARING ARE HERE
 

VIDEO TESTIMONY OF DONNA-LANE NELSON

REVIEWING THE UNINTENDED CONSEQUENCES OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT
Subcommittee on Government Operations
SUBCOMMITTEE ON GOVERNMENT OPERATIONS
HEARING DATE: APRIL 26, 2017 2:00 PM 2154 RHOB

PURPOSE:

To examine the effects of the Foreign Account Tax Compliance Act (FATCA) on the U.S. and international economy, as well as potential legislative remedies.
BACKGROUND:

Signed into law in 2010, FATCA requires non-U.S. financial institutions to report assets and identities of U.S. citizens with non-U.S. financial accounts to the Internal Revenue Service.
As a result, many foreign banks have stopped serving U.S. citizens, and record numbers of Americans have renounced their citizenship.
Senator Rand Paul (R-KY) and five expatriates filed a lawsuit claiming FATCA constitutes an unconstitutional breach of privacy, as well as an illegal treaty

WITNESSES AND TESTIMONIES

Name Title Organization Panel Document
The Honorable Rand PaulU.S. Senator State of Kentucky
Mr. James Bopp, Jr. Attorney The Bopp Law Firm, PC
Mr. Mark Crawford Director AKSIONER International Security Brokerage
Mr. Daniel Kuettel Former U.S. citizen living in Switzerland who renounced his U.S. citizenship due to FATCA
Ms. Elise Bean Washington Co-Director Levin Center at Wayne Law Wayne State University
 
 

Updates April 23, 2017!!

The Democrats have selected Carl Levin Protege, Professor Elise Bean, as their witness in support of FATCA. Professor Bean is an interesting choice given that the focus of the hearing, in its plain terms is:

REVIEWING THE UNINTENDED CONSEQUENCES OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT

It seems to me that Professor Bean might be a much better witness if the hearing were for the purpose of:

CELEBRATING THE INTENDED CONSEQUENCES OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT

To glean some insight into the perspective of Professor Bean, read the account of her March 30 meeting in Washington with PANA committee of the European Parliament. In explaining the superiority of the U.S. approach to penalties and enforcement she noted:

Bean agreed with MEPs that the US is in a more advanced position than the EU when it comes to penalties and enforcement.

“On improving enforcement, there are three things you can do in the EU,” she said. “The first is to increase your fines – your fines at the moment are a fraction of what the banks are earning. Secondly, you should require that the company or bank admits liability. This opens the door for class action lawsuits. Thirdly, make sure that the fines are not tax-deductible. Taxpayers end up paying more than big banks when the fines are tax-deductible.

“In the US, we also use monitors on compliance. We have a monitor who will monitor the institution for a period of two years to ensure that the required changes are actually made. Make the banks pay for their own monitoring.”

Bean also informed the European delegation that there will be tax justice demonstrations taking place in Washington and 60 cities across the US on April 15. The protests will demand Trump releases his tax returns but will also call for ending deferral of corporate taxes and for action on shell companies, she said.

Professor Bean is a colleague of Professor Linda Beale of Wayne State Law School. Professor – through her own writings – is NOT sympathetic to problems of taxation-based citizenship and Americans abroad. She has distinguished herself as one who fundamentally believes that everybody with an undisclosed “offshore bank account” is (to use her words) a “scofflaw“. The professor, as well as a professor of tax law, is apparently also an expert in investing and diversification of assets as evidence by the following gem:

Now, there are at least two interesting things about the Romney’s stashing $3 million in a very low yield Swiss bank account.

1) There are better things to do with money. Even if you don’t mind a low return, you could hold that money in the US–helps the US economy more than in a Swiss bank, and is easily available without the transaction costs of getting it out of your secret Swiss bank account. Why would the Romney’s have a Swiss bank account with a very low yield? The Romney spokesperson says “diversification” but that doesn’t hold water. Makes one wonder where this money came from and certainly why it ended up in a Swiss bank.

In 2012, Professor Linda Beale introduced herself to the Isaac Brock Society in a thread which is referenced in the following tweet:

Professor Beale is a living, breathing argument for why it has become impossible for Americans abroad to retain U.S. citizenship and one of the reasons why:

________________________________________________________________________

And now back to our originally schedule broadcast …

Q. What do Ronald Reagan and Heidi have in common?

A. They both became disillusioned with the Democratic Party

When questioned about this, Mr. Reagan noted (referring to the period in his life when he was a Democrat) that:

1. He thought many foolish things in those days; and

2. In any case, he had not really left the Democratic Party. Rather the party had left him.

Heidi writes:

@FredB

“Speaking of which my personal politics are being completely turned on their head, and I am in danger of turning into a former Democrat even before I turn into a former American. Because even though most of what the Republicans stand for makes me shake my head, the only ones who have caused me harm personally are the Democrats.”

This is also the road I have travelled, from a liberal minded, east coast, physician to a renounced EX American who would rather see anyone in the White house rather than the likes of the Clinton democratic mindset.

But honestly , does it matter what the social policies of the US are anymore? We don’t live there, our concerns should be just about their fiscal policies and the effects on US citizens abroad.

I am no longer an American . My concerns now are for my own country and their policies. If you are settled abroad in your other citizenship, then does it matter if you have second thoughts about being ‘their form” of an American Democrat? You can still be a Democratic socialist or whatever in your resident country. Let America go, it is an abusive partner in your life. Hoping for it to change doesn’t work

And now, an advertisement from Democrats Abroad …


Sad but true. The Democrats Abroad AKA “The Stepford Wives” have once again conveyed the message (reminding me of a Democrat president):

“Let every Expat know, whether he wishes us well or ill, that Democrats shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe to assure the survival and the success of FATCA and Taxation-based citizenship.”

Yup, #YouCantMakeThisUp

For years and years the Democrats have made it clear that they fully support FATCA and taxation-based citizenship. One would think that they would keep their sentiments quiet. Yet, once again they have broadcasted their hatred of Americans abroad to the world.

It reminds me a bit of a teacher I once had who reminded me that:

“Sometimes it’s better to keep your mouth shut and let people think you are ignorant than to open your mouth and remove all doubt.”

Yet, that’s what those “Stepford Wives” have done, yet again. Brace yourself, after publicly condemning the Bopp/Republicans Overseas FATCA lawsuit, after failing to directly call for a move to “residence-based taxation” in it’s submission to the Senate Finance Committee, after arguing for FATCA Same Country Exemption (which would benefit only tax compliant Homelanders Abroad and support a U.S. FATCA attack on their own countries of residence), on the eve of the April 26/17 FATCA hearings in Washington, DC, they have once again confirmed their total and absolute hatred of Americans abroad and their support of FATCA.

Here it is, straight from the Donkey’s mouth:

In light of the annual IRS deadline, we’ve been receiving a lot of questions about DA’s advocacy on filing issues for overseas Americans. Why not support Rand Paul’s proposal to eliminate FATCA entirely?

From our late 2016 FATCA FAQs:

Republicans say they want to repeal FATCA. Why won’t Democrats Abroad join their campaign to repeal FATCA?

Democrats Abroad supports policy that cracks down on illegal tax avoidance. When some taxpayers break the law by hiding assessable earnings from the IRS in offshore accounts it increases the burden for the rest of us. For many decades those with access to elite financial structures and schemes have been using offshore accounts in bank/tax secrecy jurisdictions to become even richer. Nations throughout the world have determined to bring this practice to an end and Democrats Abroad believes that is a good thing. Democrats Abroad supports the policy initiative behind FATCA. We also think FATCA can be fixed to remove the unintended adverse impacts it has on law-abiding Americans abroad.

In January 2014 the Republican National Committee (RNC) passed a resolution calling for the repeal of FATCA. While the resolution made it look like repealing FATCA would be Republican Party policy, the Republican-controlled House of Representatives did not introduce a bill calling for FATCA to be repealed in all of 2014. A bill calling for the repeal of parts of FATCA was reintroduced in the Senate by Senator Rand Paul in March 2015. It has one co-sponsor and a 1% chance of being enacted.

The RNC and Republicans Overseas, the organization formed in 2013 by members of the RNC to cultivate the overseas vote for Republicans, has been very open about their strategy of exploiting the anger and upset around FATCA to raise money and build support for Republican candidates amongst Americans living abroad.

Republicans Overseas has admitted that it sees FATCA as a political tactic for activating a ground game to attract overseas voters. If FATCA had been repealed by Congress before 2016, the Republicans would lose this wedge issue in the 2016 campaign. Republicans ran in the 2014 midterm elections on a pledge to repeal FATCA as soon as they won control of the Senate. They
have had control of both houses for two years but a repeal bill to mirror Sen Paul’s bill has not as yet been introduced in the House. And why would it? The GOP can use the promise of a FATCA repeal to take into its campaigns for Congress and the White House. We understand that FATCA hearings may be planned for the months leading up to election day – an opportunity to make the case for repeal. We are putting ourselves forward for inclusion on the witness list for a House hearing on FATCA should one be scheduled for this year.

There is a global context for this question as well. By 2017 FATCA will have been in place for more than three years and be well entrenched in the compliance practices of international banks and brokerage houses. In addition, in 2017 the “global FATCA” will start to come online with the commencement of financial account reporting by at least 80 countries under the OECD Common Reporting Standards. By that time international financial account transparency and disclosure will be a given and the global crackdown on illegal tax avoidance will be very difficult for Republicans to arrest.

Is this for real? Rather than defend their FATCA Attack On Americans Abroad, they are attacking those Republicans who support FATCA repeal. Yes, yes, bring it on!!

Don’t forget that the Obama Treasury (you know the “Change You Can Believe In” – Hopey Changey Guy”) refused to to accept Same Country Exemption confirming its attack on Americans abroad.

Now, back to the April 26, 2017 FATCA hearings in Washington, DC (resulting from the FATCA repeal legislation proposed by Congressman Mark Meadows and Senator Rand Paul). Although these were not organized by the Democrats, they apparently will have witness(es) in attendance who will defend FATCA. This is good, because instead of attacking and condemning the Republicans (the current justification of their focus on FATCA retention), they will (presumably) be forced to explain why FATCA is so desirable. Rumour is that there will be a way to witness this spectacle live online!! Yes live online!!

Check back and the link to the link to the proceedings where there will be a hearing into FATCA (including the harm done to Americans abroad). This spectacle should NOT be missed. You will see that those who oppose FATCA (a broad range of people) and those who support FATCA (the Democrats) providing evidence and discussion.

But, the FATCA hearings aside …

The great “genius” of “Democracy in America” is that it is dominated by two private clubs. These private clubs are the Democratic and Republican parties. This party dominated process brought us “The Donald” who was chosen in spite of the Republican Party and “Crooked Hillary Clinton” who was chosen BECAUSE of the DNC.

In other words, the Democratic Party will not be going away in the immediate future.

Democrats Abroad (which is probably a group of Homelanders) is here to stay and here to continue one of the core missions of the Democratic Party:

The Democratic Party wants to destroy Americans abroad.

And the lesson from this is:

170 thoughts on “Those @Demsabroad reiterate their support of #FATCA! Tune in April 26/17 to see how! – Updated April 23/17”

  1. “Check back and the link to the link to the proceedings where there will be a hearing into FATCA (including the harm done to Americans abroad).”
    Please clarify that sentence for me. Does it mean that this is the post to watch to find a link to the video of the April 26th hearing? I really want to observe that hearing for myself. Will this be a link to in-house coverage like we have for Canadian parliamentary hearings? Meanwhile Anthony and Claudine (IRS Medic) say they will be broacasting the hearing live using their own video setup.
    https://www.youtube.com/watch?v=r9ZqWYUiFOw
    Now another probably stupid question. Will the live IRS Medic video only be available to people who subscribe?

  2. This is a great post! And it is NOT about parties but more, about HARM to Americans abroad.

    It is hard to imagine that we will witness attacks on witnesses who have been harmed by the undeniably targeted, punitive actions imposed upon them by their own government. Primarily due to, as Professor William Byrnes referred to it as the “draconian non-compliance penalties associated with the insidious ‘FBAR’ (Report of Foreign Bank and Financial Accounts).”

    While it would probably be too much to hope for, someone might mention the amorality of forcing all of the cost, with no certainty of reciprocity upon the rest of the world. How on earth can that be ignored by the FATCANATICS? The people of other countries, with no ties to the U.S. will pay for FATCA via their bank service charges, etc. The “alien” spouses, children and grandchildren will pay for the misplaced notions of Carl Levin, Max Baucus and most offensive of all perhaps, the disgraced Rep. Charles B Rangel, sanctioned by the Congress for tax evasion. The poorer the country, the more perverse this is. The U.S. making sure everyone “pays their fair share” outweighs anything and everything.

    And how did they do it? By threats. By asserting power. By telling allies and friends they would withhold 30% of all incoming U.S. funds if they did not comply. A review of some (largely) pre-IGA letters to the IGA reveal how this was viewed by various institutions:

    Very interesting wording used by former Attorney-Advisor from the Department of Treasury International Tax Counsel Mr. Dirk J.J. Sruinga -from #FATCA W&M Hearings 2009

    “The sanction that #FATCA uses to obtain foreign bank account information is a withholding tax imposed on U.S. source investment income…”
     
    The Canadian Bankers Association: the following is STILL on their website

    Toronto, ON, February 5, 2014 – The CBA has been very clear on FATCA (the Foreign Account Tax Compliance Act) from the beginning: while we understand that the U.S. government is attempting to address tax evasion, we have opposed how they are going about it with FATCA. Canada is not a tax haven and Americans do not move here to evade taxation.

    Despite international opposition, including from Canada, the FATCA implementation deadline remains unchanged, so we have agreed with the federal government that entering into an intergovernmental agreement (IGA) is the best approach under the circumstances.

     
    European Banking Federation describes #FATCA 25May 2012
    “Coercion: penalizing 30% withholding tax on withholdable pmts…..
     
    What really burns is remembering the report DA prepared for the Senate Finance Committee in 2014. They know what is going on. They know it is not primarily wealthy people. They know marriages are being destroyed, bank accounts closed, mortgages not renewed, the outrageous fees of the tax compliance industry, the number of renunciations with the State Department raising that fee to an obscene amount. And STILL, they support this crap. FATCA: Affecting Everyday Americans Every Day September 2014 .

    So my question to the Democrats is, how can you possibly judge the harm FATCA is causing, worldwide, especially to your own countrymen, as being less than the undefined, undocumented amount of tax evasion occurring, primarily by Homelanders, resident in the United States?

    One could go on and on but how the Democrats feel no shame for this boggles the mind (but not the heart).

  4. @Jak Dac – it appears the only coverage will be via the YouTube link EmBee posted earlier. It looks like the video will be archived on YouTube as well – which is good news for those of us on the other side of the globe (14:00EST on 26 Apr is 04:00AEST on 27 Apr – can’t guarantee I’ll be awake then).

    @EmBee – a subscription is not required on YouTube – subscribing just gets you notification of new videos on their feed (either by email or when you open the app/webpage – you can set this in preferences for each subscription).

  6. I don’t have the link yet. I will publish as soon as I can verify on Monday that my new camera will not give me issues I’ll schedule the live event and that will give me the public URL to share.

    I would say we are really excited. I am positive FATCA will be repealed. We think the status quo is just beat. We have the energy and we have the moral, intellectual, practical, high ground by a million miles.

  8. @ Karen
    Thanks.
    @ Anthony
    Thanks to you and Claudine for your valuable show and for making the trip to Washington to make it possible for all of us to see this much anticipated hearing. I’ll definitely be watching … had my calendar marked ever since I first heard the date.

  9. “This spectacle should NOT be missed. You will see that those who oppose FATCA (a broad range of people) and those who support FATCA (the Democrats) providing evidence and discussion.”

    I’ll give it a miss. Therefore I will not see those who oppose FATCA (a minuscule 9 million range of US diaspora plus a few dozen homelanders) and those who support FATCA (300 million homelanders plus Asses Abroad) providing evidence and discussion.

    The US will maintain FATCA instead of GATCA because it maintains CBT+Control instead of RBT.

    The roads will remain the same as always.

  10. “When injustice becomes law, resistance becomes a duty.”

    I’m going to go find that on the DA site or Facebook page or wherever, and state that I agree wholeheartedly, which is why every year on April 15th I pour myself a beer and congratulate myself for having not filed a US tax return.

  11. Certain financial analysts I know have long been telling me that ‘democratic government has become reality theater,’ (and this long before Trump was anywhere on anyone’s radar screen. Out of any number of issues that get brought to Congress’ attention, most get ignored (die in committee, whatever), others get debated with partisan or other extreme fervor and rage, but never get resolved, and some get acted upon, but the ‘cure’ is almost always worse than the ‘disease,’ so they become perpetual issues on which Congress can work without having to learn a new set of talking points (e.g. debt, deficit, OhBummer!care).

    If that’s true, then the DA (and Chuck Schumer &c) are just playing their role by keeping the fight alive, pushing the envelope as far as they think they can while remaining superficially plausible to their ‘constituents’ (read: groupies). It will be interesting to see what happens in the hearings . . . that’s all I’ll say at this point.

    But it’s mainly about a full employment program for legislators and ‘professional advocates.’ This circus has become a terrible drain on all our economies in oh so many ways.

  12. @CEB:

    Out of any number of issues that get brought to Congress’ attention, most get ignored (die in committee, whatever), others get debated with partisan or other extreme fervor and rage, but never get resolved, and some get acted upon, but the ‘cure’ is almost always worse than the ‘disease,’ so they become perpetual issues on which Congress can work without having to learn a new set of talking points…

    Yes but….

    As the Govtrack blog puts it:

    Only about 3% of bills will be enacted through the signature of the President or a veto override. Another 1% are identical to those bills, so-called “companion bills,” which are easily identified. Our new analysis reveals almost another 3% of bills which had substantial parts incorporated into an enacted bill in 2015–2016. To miss that last 3% is to be practically 100% wrong about how many bills are being enacted by Congress.

    https://govtracknews.wordpress.com/2017/01/07/how-a-complex-network-of-bills-becomes-a-law-introducing-a-new-data-analysis-of-text-incorporation/

    Provisions to repeal or modify FATCA might have a better chance of getting enacted as part of another bill. Meadows seems to be rocketing up the influential-politician pecking order, which suggests he might indeed be able to get FATCA-related measures included in an unrelated bill that has a better chance of passing, if getting FATCA changed or repealed was sufficiently important to him. It’s not at all clear to me that it is, but who knows.

  14. Justice would require the US and the OECD to accept that if there’s going to be AEOI the same standard should apply for all, including the US. Which would mean (as I see it):

    a) Full reciprocity
    b) Tax-residence determined by treaty tie-breaker article, with no reporting to a country in which the account-holder has no income or assets.

    But America and the OECD probably will never see it as I see it.

  15. I loved this comment on DA’s FB by Anthony Hughes (particularly the bullet point):

    If you are not in support of the basic most common principle that the rest of the world practices – taxation of residents only – then you clearly are not by any means representing the interests of the vast majority of Americans Abroad. Period. FATCA is the guard dog of citizenship based taxation. On behalf of all 9M+ Americans Abroad, I think it is safe to say and please correct me if I am wrong: we want FATCA gone and “true” residence based taxation. That’s about it. We don’t want nor can we wait for a bunch of stupid politicians to guess how FATCA should be fixed and speculate on whether or not FFIs are going to allow Americans access to full banking services with a neutered version of FATCA in place. Hell no, repeal it. Take it out back and put a bullet in it’s brain. If crap doesn’t work, stop trying to make it work. Not only that, but it’s pretty stupid how you say you support the efforts against tax evasion, yet the USA is one of the greatest tax havens in the world! I don’t see the USA complying with any global disclosure standards. Oh, and the US will NEVER be reciprocal with FATCA, despite what IGA’s might imply. If not repealed, renunciations will increase. So support whatever you want. But if it is not repeal of FATCA or CBT, hopefully you will support simplifying and reducing the cost of renunciation.

    Amen Brother Anthony. Amen!

  16. And “Amen” from me, too! Thanks Anthony, via EmBee!

    Nononymous: I pour myself a glass of that same brew every April 15 and am proud to do so. Cheers, from a fellow resister! “When injustice becomes law, resistance becomes a duty.” Absolutely!

  17. I am progressing daily, helped by my reflections on the French election, in which I will be voting. The funny thing is I used to be comfortable being a conservative in Europe, and a progressive in the US (which is in many ways quite the same thing). But as I reflect on my vote in France, I realize (should I start writing realise?) that I have a responsibility toward myself first and foremost. I must vote in my personal interest, or at least I must vote against my personal suffering. And therefore I anticipate that I will no longer be able to vote Democratic, as long as I am a US citizen. Which means voting for the only party that supports me, the Republicans.

    I’m also progressing in my analysis of the FATCA and CBT mess. First, CBT is the major problem. I have no trouble with FBARs for US residents. I have minor problems with Common Reporting Standards. But hey, a democratic (small d) country can make laws for its citizens, that’s fine. Most countries in the EU (or at least those I know) want to know about your foreign bank accounts, in more or less detail. I don’t like it, but that’s life. At least one is free to move away and forget about it.

    But FATCA, even without CBT, would still be troublesome because it exports US law in such a threatening and arrogant manner, and because it forces the whole world to come into costly compliance, at the expense of the rest of the world, abusing the role of the dollar as the major world currency. Indeed FATCA must go.

    The Democrats are completely misguided on this entire issue. CBT is wrong. SCE is wrong. FATCA is wrong, even if there were RBT. When Grover Norquist makes more sense than the Democrats, well, that’s quite new to me… but I’ll get used to it.

    Thank you EmBee for Anthony Hughes’ comment — he has it exactly right.

  18. It’s so simple …

    Switch from CBT to real RBT.
    Ditch FATCA for NR USCs.

    Just switch and ditch. Unfortunately DA and ACA want to perpetuate the complexification of simplicity.

  19. The hearing will be held by the house subcommittee on government operations. Why not give the members a ring and give them a ration of sh*t express your views about this appalling law, especially the dems? Here is the complete list of members, affilations, states and phone numbers:

    Gerald Connolly (D, VA): (202) 225-1492

    Carolyn Maloney (D, NY) : (202) 225-7944

    Eleanor Holmes Norton (D, DC) : (202) 225-8050

    William Lacy Clay (D, MO): (202) 225-2406

    Brenda Lawrence (D, MI) : (202) 225-5802

    Bonnie Watson Coleman (D, NJ): (202) 225-5801

    Jody Hice (R, GA) : (202) 225-4101

    Jim Jordan (R, OH) : (202) 225-2676

    Mark Sanford (R, SC) : (202) 225-3176

    Thomas Massie (R, KY) : (202) 225-3465

    Ron DeSantis (R, FL) : (202) 225-2706

    Dennis Ross (R, FL) : (202) 225-1252

    Rod Blum (R, IA) : (202) 225-2911

  24. @RepMarkMeadows
    @CongressmanHice
    @Jim_Jordan
    @MarkSanford
    @RepThomasMassie
    @RepDeSantis
    @RepDennisRoss
    @RepRodBlum

    @GerryConnolly
    @RepMaloney
    @EleanorNorton
    @LacyClayMO1
    @RepLawrence
    @RepBonnie

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