This article has also been published at The Hill’s Congress Blog. It’s a great opportunity to directly reach a Congressional audience so we encourage readers to get over there and comment!
This is the second article by Caldwell in Canada’s conservative-leaning Financial Post and is much stronger than the first. I have asked Mr. Caldwell to send his article as a submission to Canada Finance (deadline March 10).
A few excerpts:
“FATCA, passed by the U.S. Congress in 2010, is an extension of America’s anomalous and larcenous practice of demanding taxes from people, regardless of where they reside in the world. The United States is one of only two countries that engage in this disgraceful conduct (Eritrea being the other.)
….Let us eliminate a deliberate misconception: This agreement is not about catching “tax cheats” as its proponents aver and journalists obediently repeat. It is about expanding America’s oversight of global commerce, while increasing its ability to confiscate funds to which it has no legitimate claim.
Notwithstanding that Canada’s leaders have subjected their citizens to the most rapacious and malevolent tax department in the world in the form of the IRS, they have committed a craven surrender of national sovereignty.
As a dual citizen I appreciate and have benefited from the unique trading relationship of these two countries. But in this case the United States is being a bully and, like many bullies, needs a smack in the nose. Canada, meanwhile, needs a leader with the sand to deliver it.
A simple no would suffice. Call America’s bluff, if indeed that’s what it is. If however the U.S. means what it says and really were to begin slapping a 30% withholding tax on Canadian investors, Canada should respond by granting an immediate tax credit in that amount to affected individuals and institutions. This may take a bite out of federal tax receipts, but right is right. If America’s largest trading partner were willing to stand up against such preposterous demands, other countries woudl have the courage and blueprint to do the same….”