Now that “the Bernank” has announced QE III, a.k.a. Unlimited QE (I prefer “QE Infinity”), Marc Faber says that it will destroy world. Zero Hedge estimates that the Federal Reserve’s new money base will increase to 4 trillion from 2.8 trillion (=43%) by the end of 2013–that’s because Bernanke is going to add at least 40 billion to the money base every month, with no limit, no specified target. If you are lucky enough to be in a jurisdiction that doesn’t debase its currency at the same rate, then you better renounce your US citizenship quickly: pretty soon the average home in Vancouver, Calgary or Toronto will be worth two million US dollars, while the Loonie threatens to rise to unforeseeable levels against the Greenback, unless of course Mark Carney debases Canadian currency in this race to the bottom.
Yearly Archives: 2012
Moving without Moving, Legal but Illegal
Some rules make more sense than others while some make no sense at all, like rules on voting for Americans living abroad. The rule for Americans living abroad is that they may only vote where they last lived, or where their parents last lived, or where their parent’s parents last lived, or something odd like that, assuming that they once lived in the States or know where their parents, grand parents or great grand parents lived. Never mind their possible plans of returning, the place where they may feel attached or the area where they actually have a voting interest. Americans abroad must vote where they may have no interest in voting, they are told. Boy, that sure encourages one to vote!
You must vote in the state/county where you last established residence (domicile) in the U.S., and typically, where you developed a real connection.
Under traditional rules and state law, a person living overseas is permitted to register and vote only in the place that constitutes his/her previous residence/domicile. This is the last real home you had in the US and is referred to by election officials as your voting residence address. That defines the state and the jurisdiction.
Overseas Vote Foundation
UK signs Agreement with the US on FATCA
There are different legal remedies that can be taken under UK law to attempt to block this agreement. However, there are not really any commentators here from the UK so I have not really spent much time explaining them. If anyone is interested in the UK I can provide more detailed advice if necessary.
http://www.hm-treasury.gov.uk/press_82_12.htm
The two individuals pictured are Emily McMahon of the US Treasury and Deputy Exchequer David Guake. One piece of news is that UK Credit Unions will be exempt from FATCA even if they have UK Resident US Person account holders. Again if their are individuals willing to fight FATCA in the UK I can provide assistance and advice however, no one appears to want to do so.
Update: Senator Tom Coburn of OK trying to make Passport revocation law stricter
I don’t have a lot of details yet but apparently Tom Coburn of Oklahoma(a Republican for those of you who care about that type of thing) is proposing an amendment to make the existing passport revocation provisions of S.3457 even more onerous. Link to the amendment text below:
http://www.gpo.gov/fdsys/pkg/CREC-2012-09-13/html/CREC-2012-09-13-pt1-PgS6346-3.htm
BC Business Magazine looks at FATCA, credit unions
@all
I’ve been away for a couple of weeks backpacking in the Rockies — no wireless, no newspapers, no email, no cell phones — heaven.
Many of you are asking about credit unions. I have written a 2000-wd magazine piece on how credit unions in BC (and nationally) are dealing with FATCA. I can’t share details with you now, but the piece will be published in BC Business magazine on Oct. 1. The magazine is hoping this will spark significant reader comment, and everyone at IBS is welcome to go online and submit a letter to the editor. Here’s what the BCB Editor said in a note I got this morning:
“You can just let them know to look for your story in our October issue, which will be out first week of October. It should be online by Monday, Oct. 8. If they want to send a letter to the editor, they can address it to:
bcb@canadawide.com
and put “letter to the editor” in the subject line.
Thanks — Here’s hoping for a lively discussion!”
So — go for it Brockers. And don’t hesitate to take a shot at the piece if it doesn’t meet your expectations. After 40 years of doing this, I’ve got a very thick hide. My one almost-daily panic is that magazine deadlines are such that the story must be submitted at least two months before publication — and a lot can change on a file like this in a couple of months. I’m praying the whole thing isn’t irrelevant by the time it sees the light of day.
BTW — on our backpacking trip, met a couple from Virginia. They were astounded when we filled them in on FATCA, FBARS, citizenship-based taxation etc. — they knew NOTHING about this issue and were horrified that their government is inflicting this kind of pain on expats.
McGill Tax Policy Colloquium
Arthur Cockfield, who is already known to readers of this blog, will be participating October 10 in the McGill Tax Policy Colloquium. I have no idea what his topic will be, however readers in the Montreal area might be interested in attending. (I assume the event is open to the public, but that is perhaps worth checking in advance.)
Here is more information:
McGill University Faculty of Law Tax Policy Colloquium
This fall marks the third instalment of the McGill University Faculty of Law Tax Policy Colloquium. This year’s colloquium features a number of distinguished invited speakers who will contribute a rich variety of scholarly works in progress on topics of national and international tax law and policy issues. If you will be in Montreal on any of these dates, I invite you to join the tax policy class to hear presentations by this illustrious group. All presentations begin at 11:35 in New Chancellor Day Hall, Room 201, at the Faculty of Law, 3644 Rue Peel, Montreal, Quebec.
Wednesday, Sept. 26: Prof. Miranda Stewart, University of Melbourne Law School
Monday, Oct. 10: Prof. Arthur Cockfield, Queen’s University Faculty of Law
Monday, Oct. 29, Prof. Reuven Avi-Yonah, Irwin I. Cohn Professor of Law, University of Michigan School of Law
Monday, Nov. 5, Prof. Lisa Philipps, York University, Osgoode Hall Law School
Monday, Nov. 12, Prof. Alain Deneault, Université du Québec a Montréal, Dept. of Sociology
Monday, Nov. 19, Prof. Colin Campbell, University of Western Ontario Law School
Renunciation and Relinquishment: What are the differences? Is there a difference?
Cross-posted from Maple Sandbox
We often use separate terms for “renunciation” and “relinquishment” since there are some notable differences between renunciation and the other methods of terminating one’s US citizenship. However, renunciation is actually one of the 7 methods of relinquishment, as set out in Immigration and Nationality Act, s. 349(a). This post explains some of the similarities and differences.
Shame Shame Shame on US Senator Bill Nelson of Florida
US Senator Bill Nelson and his Senate colleagues are back up to their old tricks of trying to get a Passport revocation rule instated for back/unpaid taxes. This time they are trying to do it through enacting an amendment to the “Veteran Jobs Corps Act of 2012” which who could be against such a piece of legislation until of course you look at fine print and notice the provisions of the act that have nothing to do with veterans or jobs. The following Senators are Senator Nelson’s partners in crime so to speak on this issue:
Sen Blumenthal, Richard [CT] – 9/10/2012
Sen Franken, Al [MN] – 9/11/2012
Sen Gillibrand, Kirsten E. [NY] – 8/2/2012
Sen Merkley, Jeff [OR] – 9/10/2012
Sen Murray, Patty [WA] – 7/30/2012
Sen Schumer, Charles E. [NY] – 9/10/2012
Sen Stabenow, Debbie [MI] – 9/10/2012
Sen Wyden, Ron [OR] – 8/2/2012
Link to legislation
Financial advice — just how do US Persons Abroad now effectively plan and save for their retirement?
I found this article on the Moodys Tax Weekly:
Life Expectancy, Retirement Planning?
It seems to me that any effective, responsible retirement / estate planning, leaving something behind for our families, can drastically change when taking into account US citizenship-based taxation, excessive penalties (vs actual taxes owed to the US). If we have been able to do any careful planning with our countries’ savings incentives (such as Canada’s RRSPs, RRIFs, TFSAs, RDSPs), certain mutual fund investments, etc. it all now has a different face. Some are already there, into retirement, out of the work force and with limited choices to change course.
EUROzone Crisis
Some countries are threatening to leave the Euro because of austerity measures that their people won’t accept. Others want Germany to prop the Euro up or leave the zone.
What do all of you make of this mess?