Obama Bypasses Congress to Foist “Imperialist” Tax Plot on World
As part of a fiendish effort known as FATCA supposedly aimed at extracting an extra billion or so dollars from U.S. taxpayers each year, the Obama administration is bypassing Congress to impose a far-reaching new tax regime on the world, and domestically on the United States. Experts and analysts say the scheme could destabilize the U.S. financial system and potentially even spark another economic crisis due partly to executive-branch mandates on American banks; yet the IRS and the U.S. Treasury are moving full-speed ahead in spite of major concerns raised by lawmakers and others over their authority to do so. Critics are referring to the whole plot as “fiscal imperialism.”
Great article. Wish Treasury would do it’s job and go to Congress saying that FATCA and CBT simply does not work and should be changed. Under the Obama Administration this will never happen – it’s full speed ahead to throw US Persons under the bus. Pray for Rand Paul and for the Republicans to win the Senate in the fall and hold the House.
I know it’s not part of the thread, an interesting podcast I listen to each week. Please wind ahead to 37 mins and listen. David M in the clip sums it up.
Perhaps FATCA will become a victim of the dollar’s diminishing influence in the world and ‘work arounds’ and bypasses will demise FATCA in the medium term.
As long as governments like Canada sign up with the mere promise of reciprocity, what chance is there of FATCA being derailed because the US won’t be authorized to deliver?
I think you are going to see more and more announcements like this..
New Zealand, China in currency exchange deal.
and he might add, “take away the U.S. sanction bludgeon to threaten us”
Excellent article – I have emailed it to several people.
Do you think the Chinese banks will welcome us with open arms? After all everything I buy at Walmart comes from China. I already have a big investment with them anyway.
FATCA is ridiculous in the first place. The United States should be adopting a residence-based tax system as opposed to a citizenship based system like 99 percent of the rest of the world. This legislation will only further impede on the national sovereignty of other nations and further fuel American resentment. FATCA has potential implications extending beyond ‘American persons’, this is an extremely expensive compliance program to enforce and customers of these banking institutions will most likely have to bear the weight of this in increase banking fees.Offshore banking is a serious issue, but the American governments need to target the real culprits, increase corporate taxation and those that have complex methods to divert income reporting.
There are many Americans in Canada who have no ties other then its their place of birth. Is it really fair to tax them for economic productivity that was not generated in the United States? absolutely medieval thinking from the United States government.
You’ve just said what many of us with ‘US taint’ have been saying to the Conservative government, as well as to the American government for months. Yet they all ignored our pleas, and our own Canadian government which should be protecting us, sold our souls to the devil down below.
It it not about fairness, nor is it about actually catching the tax cheats.
They know who they are and know where they are. They are the largest contributors to the current administration. ( Jeff Imelt and GE owe over 4 billion in back taxes they will never pay because they support the administration in a big way)
It is about theft. Any way and any how.
FATCA is about garnering small fish with a whole lot of retirement money anywhere in the world and they pretend they are going to punish the banks to do it.
As you can see by the uproar in the states right now, the banks are screaming about the so called reciprocity the IRS illegally negotiated with the IGA’s signed by the gullible countries who took them at their word there WOULD be reciprocity. It is clear that there will not be nor can there be as it would end the American economy. Yet the administration says to plow on full speed ahead.
This begs the question as to why OUR government even entertained the idea of signing the IGA.
This is on such a larger scale and FATCA obscures that scale FOR NOW.
The clue is in the IGA Canada signed itself : ” follows the OECD guidelines for compliance”
Those guidelines? OECD ( 34 countries including Canada) intend to implement GLOBAL FATCA in September of 2014 wherein ALL individuals and all companies, large and small will allow all their private information , personal and financial to be sent to the UN for processing and taxing. Penalties for ‘non compliance’ will be harsh beyond belief and they state this with glee.
( you can acutally visualize them rubbing their hands together)
And that is why our government has not and will not protect us and sold us out to the devil.
The only thing that make governments sit up and listen to those who put them in power is to make it political suicide if they do not.
Class Action. Charter Challenge. AND Injunctions. Any and all and all at once if it can be managed!
Maybe Canada finding it’s back against the wall signed on just to buy time – and is trying to confuse us with double talk to keep us at bay.
That may well be that they are biding time. First they capitulate to FATCA because? They had no choice? They have no backbone?
First: IF they had no choice they would not have done two things:
Put in a ‘bail-in’ clause on page 145 of the 2013 budget AND made it plain in the language of the IGA that they were adhering to the guidelines of the OECD. That tells me that they are ‘On Board’ with the entire scheme both of FATCA and GATCA.
Our country’s leaders go to the G8 and the G20 where these schemes are hatched. If they were not on board and were loyal Canadians with the sovereignty of the nation at heart they would have immediately said no to FATCA and could have easily because they engaged in a negotiation with the IRS ( illegal for IRS to negotiate or Treasury for that matter) knowing it was illegal to do so.
The US Congress DOES NOT recognize the IGAs as legal and binding tax treaties. They are called ‘quasi’ and are criticized strongly.
Therefore, our nation’s representatives were and are more than justified in refusing to negotiate. For without an IGA , FATCA fails utterly.
Not only is it illegal to demand from Canada what they demand it is illegal to demand it globally. And OECD is the same. It is illegal to demand the over ride of existing laws of privacy and protection.
Yet, this is exactly what our government has facilitated.
And appears to be willing to go even further with the OECD.
AND: whatever the banks want the banks get.
Sorta on the topic of IGAs, here’s Dick Harvey’s latest slide deck from some keynote speech he gave at a tax symposium: “Offshore Accounts: FATCA Background, Developments, and Key Issues”. Two amusing things here: he admits that the question has to be asked “Will FATCA go live on July 1st? Should it?” (though of course he tries to remain optimistic), and he admits it “[c]ould take 5 to 10 years to get a truly multilateral system operating”. Do foreign governments know that this is the “reciprocity” they’re going to get?
“US Persons” abroad, of course, rate only two mentions. Once under “Miscellaneous Concerns” (“Would US taxpayers resident overseas have FFIs that would still service their financial needs?”), and once more under “Miscellaneous Developments” (“FFIs refusing to do business with US citizens abroad; Substantial increase in US citizens surrendering citizenship”). Certainly not in the “Major Concerns During FATCA Drafting” (which I suppose is at least honest: it’s obvious he didn’t think about us at all when cooking up this crock of ****).
Ruin people’s lives, then spend the final decade of your career raking in the speaker’s fees!
@Eric – I have tried to download the file at the link that you reference … unsuccessfully every time …. and when trying to create an account … the site says that it will email me with a link to complete the registration … which never arrives. I wonder whether there is a way to circulate the file without the palaver.
@Eric – I finally managed to view the file without registering.