Jamie Golombeck has an informative article in the Financial Post, “Americans in Canada still at the mercy of IRS“. Petros asks questions about aspects of the problem that seem to be missing from the article, such as, How the hell is this fair?
Thank you for keeping us informed about tax issues for US persons living in Canada. I have some questions though:
Most Canadian residents won’t owe anything. This is true Mr. Golombek, but could you please explain to us which Canadian residents would or should owe something to the IRS? Now, let’s also consider that whatever Canadian source income gets taxed by the United States unfairly dilutes our tax base here in Canada and gives the taxpayer a credit on the Canadian income tax. How is that fair to Canada? If even one penny of our tax base goes to the United States to be frittered away on the wasteful spending in the US, isn’t that one penny too many? Don’t you think that Canada’s wealth belongs to Canada? How is it fair then that the US has the right to demand Canadian residents to pay anything to the US?
Have you also considered that it is against the United States constitution to make US persons pay taxes when they have no representation in Congress? All US persons outside the US are considered to be resident in Washington DC for tax purposes? DC has no representative in the US Congress. How can the US treat people as though resident in DC when they are actually resident in other countries like Canada? How is that fair? Who is looking out for our interests? Is it the Canadian government?
Have you also considered that the most likely person to be destroyed by the new tax tyranny of the IRS are seniors and older workers, who have savings in bank accounts and need that in order to survive for retirement, whose income is not protected by the Earned Income Exclusion? The new application of the FBAR law treats those of us who have savings in our Canadian bank accounts as tax cheats as though we were hiding our money in another country to avoid taxes. Do you realize how unjust that is? Did you read the Reuters article by Amy Feldman? What happens when the IRS pillages the savings of those older folks–will they not become wards of the Canadian government? Most of course will not be able to go on welfare or Social Security in the the USA, will they?
Have you or anyone else at the Financial Post considered how many rights that the FBAR and FATCA laws violate? How FATCA is creating two kinds of Canadians, one Canadian who has full rights to bank accounts and TFSA, and second class citizens whose account information will be shared with the IRS by their Banks? Is that right? Is that not a violation of the Human Rights laws in Canada?
Your article also fails to mention the large number of US persons in Canada who are renouncing their citizenship over this issue. But that, of course, is another story.