Liberty and justice for all United States persons abroad

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Senate Finance Committee posts submissions (and Shadow Raider reports to Brock)

Posted on by Posted in Issues regarding US persons abroad 440 Comments

UPDATE: JUNE 14, 2015

from JakDak:

http://blogs.rollcall.com/topic-a-tax-finance/tax-reform-moves-to-back-burner-but-debate-remains-active/

The Senate Finance Committee chairman, Senator Orrin Hatch (R-UT), has established working groups to study different aspects of the tax system. These working groups are scheduled to report back to the committee by June 26.

http://www.mwcllc.com/updates/articles/2015/6/tax-policy-update-june-9-2015.aspx#Comprehensive_Tax_Reform

Tax Policy Update
June 09, 2015

[Interesting: NUMBER OF THE WEEK: 61. The number of countries that have signed on to implement the OECD’s multilateral agreement for the automatic exchange of tax information, in conjunction with the ongoing Base Erosion and Profit Shifting (BEPS) project. Although the U.S. has committed to implement the standard, it has not yet signed onto the formal agreement (the “multilateral competent authority agreement”), which lays out in detail what information will be exchanged, the timing and method of exchange, and how signatories will work together to ensure compliance. Signatories to the agreement will begin exchanging information as early as 2017. Additionally, the OECD released on June 8 its “Country-by-Country Reporting Implementation Package” developed under the BEPS Action Plan. Under the plan, which the Treasury Department has said it will implement for the 2016 fiscal year, multinational companies are required to aggregate and report information annually regarding where they do business, the global allocation of income, and amount of taxes paid, along with other information that will allow taxing authorities to more closely examine multinationals’ tax practices. The release of the package coincides with the 2015 OECD International Tax Conference in Washington, D.C., this week where OECD representatives are expected to review and discuss key initiatives under BEPS.]

SPOILER ALERT: Comprehensive Tax Reform Unlikely in 2015. In an interview last week, Senate Majority Leader Mitch McConnell (R-KY) outlined a busy legislative agenda between June and August recess: passing a highway bill, cybersecurity legislation, No Child Left Behind, and the Toxic Substances Control Act. Tax reform, however, is conspicuously missing from the list. “We’re certainly not going to be able to be doing big, comprehensive tax reform with this president,” McConnell said. Tax reform optimists have been eyeing the highway reauthorization bill as a potential vehicle to move a limited set of tax reform measures, but according to McConnell, the bill might instead be better suited to pick up a different legislative passenger—the reauthorization of the Export-Import Bank. McConnell believes the highway bill would provide the best opportunity to reauthorize the bank, which is set to expire June 30.

The inability of the Senate Finance Committee Tax Reform Working Groups to meet their original May 31 deadline to report recommendations to Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) only adds to the general pessimism. The international tax working group may offer the only glimmer of hope, with reports that it has made the most progress in hammering out detailed recommendations. The working groups are now aiming to deliver their reports before Congress departs for the July 4th recess.

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UPDATE: MAY 25, 2015

Em’s comment to JakDak:

I’m not sure of the where for the SFC recommendations but the when has been delayed:

http://thehill.com/policy/finance/242916-senate-tax-reform-groups-get-more-time

The Senate Finance Committee’s leaders are giving tax reform working groups some more time to formulate their recommendations.

Finance Chairman Orrin Hatch (R-Utah) and the panel’s top Democrat, Sen. Ron Wyden (Ore.), had hoped for recommendations by the end of May.

But in a statement Thursday, the two senators said that the working groups made it clear that they needed extra time to do the job right. The panel will set a new deadline after lawmakers return from next week’s recess.

“It is our hope these bipartisan working groups will use this extended time to finalize their recommendations for tax reform and produce in-depth analyses of options and potential legislative solutions,” Wyden and Hatch said in a statement.

etc.

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Shadow Raider says
April 29, 2015 at 6:39 pm

The Senate Finance Committee just released the comments sent by the public on tax reform. As expected, there are lots of comments about CBT and FATCA.

http://www.finance.senate.gov/newsroom/chairman/release/?id=3b14e94b-69f9-41e2-9fd3-7d191971b7ee

 

Hatch, Wyden Release Public Input on Bipartisan Tax Reform

Over 1,400 Submissions Made to Working Groups

WASHINGTON – Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) today released over 1,400 submissions from stakeholders on how to best to overhaul the nation’s broken tax code.  In March, the Committee sought input from the public in an effort to provide additional data and information to the Committee’s bipartisan tax working groups, which are currently analyzing existing tax law and examining policy trade-offs and available reform options within each group’s designated area.

“We thank the stakeholders and public who provided us with this valuable data and input,” Hatch and Wyden said. “These submissions have equipped us with the ability to better evaluate how reforming the tax code will affect both American families and business of all kinds.  As our bipartisan groups work towards producing substantive recommendations on how to reform the tax code, they will now be able to consider these valuable ideas.”

All comments received by the Committee that met submission requirements were made public.

Submissions can be found below. Total submissions to each bipartisan tax working groups are as follows:

Individual Income Tax – 448

Business Income Tax – 332

Savings & Investment -128

International Tax – 347

Community Development & Infrastructure – 207

Each of the five bipartisan working groups is currently working to produce findings on current tax policy and legislative recommendations within its area, with the goal of having recommendations from each of the five working groups completed by the end of May.

###

Thanks, Shadow Raider, for alerting all here.  There will be many Brockers reading, starting with the submissions (not all by individuals) to International Tax.

440 thoughts on “Senate Finance Committee posts submissions (and Shadow Raider reports to Brock)”

  1. The AARO, DA and the rest of the expat groups, aside from American Expatriates, are getting called out and hammered on FB.

  2. “With malice toward none; with charity for all; with firmness in the right,
    as God gives us to see right, let us strive to finish the work we are in;
    To bind up the nation’s wounds;
    To care for him who has borne the battle,
    and for his widow, and his orphan.”
    President Abraham Lincoln, Second Inaugural Address, March 4, 1865

  3. @charl, “The AARO, DA and the rest of the expat groups, aside from American Expatriates, are getting called out and hammered on FB.”

    Can you provide some examples for non FB types….

  4. @George
    Sure, they are long and there are many but here is a sampling: (Hope I didn’t make this too long..if yes sorry in advance). I particularly like the last comment I included.

    Steven Jacobi

    Shelby Lyon – I am in total agreement with what you wrote about the tireless efforts of those who have been our voice as American expats! I am very grateful to them.

    However, times have changed and not for the better. We are in a time as Americans living abroad where it is a matter of financial survival personally and professionally so we can go about our lives and care for our families.

    Because of this terrible situation different measures must be taken. My belief is that these organizations unintentionally have placed themselves in submissive roles when it comes to dealing with those in Washington. They do not want to rock the boat. Therefore, they will not push the envelope or say or do anything that may be considered provocative for risk of making those in Washington mad at us. We are beyond that at this point. This standard of operation and attitude must change and change drastically if there will be any progress in resolving our situation.

    We are Americans who happen to live abroad for a variety of reasons. If we identify ourselves as outcasts regardless of how we are perceived then we will remain as outcasts.

    It is important for individual submissions to be made to the Senate Finance Committee. But it is of the utmost importance for these organizations who represent us to have made their submissions for a change to RBT with examples of the damage CBT is causing to many of us. Not doing so, is negligent and an insult to us.

    Having the attitude that it is what it is and nothing can be done is inexcusable and defeatist. If African-Americans had this same attitude during the Civil Rights Movement, then nothing would have changed for them.

    Republicans Overseas clearly stated in their submission their support for RBT and their support for repeal of FATCA and spoke at length about the current damage being done. Therefore, I would like to know why AARO and Democrats Abroad did not outline clearly its support for RBT and its support for realistic changes made to FATCA or repeal of FATCA to stop the damage being done to us.

    Walt Sanchez

    Steven Jacobi “I have my suspicions about AARO and their allegiance to the Democrat side.” I have the same suspicions. Why else would they put more funding for the IRS and SCE in front of RBT which was no more that a footnoted link to another document? I find it hard to believe that it was an accident.

    Walt Sanchez Steven Jacobi: “My belief is that these organizations [AARO, FAWCO and ACA] unintentionally have placed themselves in submissive roles when it comes to dealing with those in Washington. They do not want to rock the boat. Therefore, they will not push the envelope or say or do anything that may be considered provocative for risk of making those in Washington mad at us [Boo Hoo]. We are beyond that at this point.” — I fully agree Steven. It is time to rock the boat. Playing patty cake with Washington is a waste of time. Lawsuit, Lawsuit, Lawsuit is the way to go! We need to take down Cook vs. Tait.

    Bob Jones

    I am very disappointed in AARO and FAWCO. They are mature organizations with a degree of clout with Congress. What they submit on behalf of 8 million Americans living abroad carries more weight than any individual possibly can. It was their chance to show the SFC that Americans living abroad desperately need RBT. But they simply passed up that opportunity. It is up to them now to explain to 8 million Americans abroad why they did that.

    Walt Sanchez

    Alan Seigrist. A very good question and one that needs to be asked of the GOP. No wonder all these organizations are so afraid of upsetting the Democrats and reluctant to veer too far from the Democratic party line. Its as if the Democrats are using these expat organizations to promote their own interests rather than the other way around. A reverse representation of sorts.

    Beau Davis

    Why can’t the ACA use its platform to launch a CBT law suit that we could crowd fund? CBT is one of the biggest issues we face but none of these groups will even consider a law suit.

    Beau Davis

    Aagree Walt, all these expat groups have been trying the nice approach that Michael refers to and it has got us no where. In fact, it has got worse (FATCA). Michael is correct that the nice and polite approach is wise but after a while when the other side is not treating you with any respect the gloves have to come off.

    Walt Sanchez

    Proof of Democrat party influence, if not control, over the various expat advocacy groups who proclaim to US congress that they “represent” 8 million Americans abroad: From the DA submission to the SFC — “Democrats Abroad, American Citizens Abroad, Association of Americans Residing Abroad and Federation of American Women’s Clubs Overseas propose the establishment of a Safe Harbor for Americans Abroad from FATCA Reporting.”

    Alan Seigrist

    Classic tail wagging the dog

    Bob Jones

    DA, AARO, FAWCO are all in the same sack — preserve the CBT and FATCA status quo. You are all enablers of continued human rights abuses against US expats.

    Beau Davis

    Very true. The ADSC in Canada is the only group in the world that is actually doing something instead of just talking about doing something. People from all over the world have been donating to this law suit against the Canadian government regarding the IGA Canada signed with the USA. As Marie just stated, if the IGA that enables FACTA can be ruled unconstitutional in Canada, it can have a major riplle effect throughout the world. If you want to do something but don’t know what, donate to the cause. They have hired the top constitutional attorney in Canada!

  7. @EmBee: ShadowRaider captured it. “Absurd…so many problems for a lot of people for no good reason…No justification…”

    Strong but Easy solutions.

  10. EmBee

    Thanks
    Just wondering if anyone has any inside info talking to assistants etc.

  11. Bravo and heartfelt thanks Shadow Raider and Lynne! Now if only common sense and justice will prevail. They cannot say that they haven’t been told. You schooled them – and even provided the answers for them to copy down and implement. Now they’ve got to find the will and a sense of ethics and fair play.

  12. @ Charl
    Darn near missed your comment of comments re: AARO, FAWCO and ACA — awesome! Oooh that last — that’s tellin’ ’em too!

  13. I don’t understand why the AARO submission is missing. Either why it was not posted or why they did not submit one.

  14. Submissions a Catch 22 really
    Non compliant taxpayers (??) are going to keep their heads down
    and SOME compliant ones will battle
    Some people testing the waters of foreign culture probably will not raise their hands
    In some ways if America ? IRS made an effort to let everyone know (document with signature on plane, highlighted in US/ Foreign news,BIG newspaper ads etc.) there would probably be MILLIONS of people complaining and change would probably happen.
    Think about it

  16. Let’s try to do something constructive instead of bashing other organisations.
    Is there not strength in numbers ? Why not reach out to these other groups and try to working together ?

  17. Part of AARO’s submission
    Members of this Committee are fully aware of most of the problems facing U.S. taxpayers filers abroad, and I will not repeat them here.
    Political writing ?

  18. @Lizzie, “Let’s try to do something constructive instead of bashing other organisations.
    Is there not strength in numbers ? Why not reach out to these other groups and try to working together ?”

    With respect to Democrats Abroad in particular they have aligned themselves with the US Politicians who have called us Fatcats, Tax cheats and repeatedly state we do not pay our fair share.

    Frankly many of us have cracked under this abuse.

    Why won’t Democrats Abroad call a spade a spade and tell Obama and his allies that he has harmed, no not just harmed, viciously harmed, millions of human beings that do not live in the USA.

    US Democrat Politicians have financially harmed, emotionally harmed and created irreparable scarring on millions of persons.

    Until Democrats Abroad and some others admit the damage that their political masters have caused there is no working together.

    These so called overseas organizations are not representing persons overseas, they are farming votes and donations nothing else, they are get out the vote machines, nothing more.

  19. DA’s behavior is appropriate for what they really are, George – a propaganda arm of the Democratic Party.

  20. FYI (edited)

    135 Hart Senate Office Building
    Washington, DC 20510-1501
    (202) 224-3744
    http://www.grassley.senate.gov

    721 Federal Building
    210 Walnut Street
    Des Moines, IA 50309-2106
    (515) 288-1145

    111 7th Avenue, SE, Box 13
    Suite 6800
    Cedar Rapids, IA 52401-2101
    (319) 363-6832

    CHARLES E. GRASSLEY
    WASHINGTON, DC 20510-1501
    120 Federal Building
    320 6th Street
    Sioux City, IA 51101-1244
    (712) 233-1860

    210 Waterloo Building
    531 Commercial Street
    Waterloo, IA 50701-5497
    (319) 232-6657

    201 West 2nd Street
    Suite 720
    Davenport, IA 52801-1817
    (563) 322-4331

    307 Federal Building
    8 South 6th Street
    Council Bluffs, IA 51501-4204
    (712) 322-7103

    I appreciate hearing of your concerns about the tax burdens your family and other Americans living abroad face. The United States currently has a worldwide tax system that taxes the income of American residents whether it’s earned in the U.S. or abroad. If an individual has investments overseas any income on those assets are generally taxed by the country in which they are earned. In order to prevent this same income from being taxed twice, once in the foreign country and again in the U.S., a foreign tax credit is permitted. Foreigners who invest in the U.S. are subject to U.S. federal income taxes. Generally, their country of residence similarly provides a credit for taxes they paid in the U.S. or if their home country has a territorial tax system, may not tax income earned by them overseas at all.

    The U.S. is one of the few developed countries that continues to tax its residence, whether individuals or corporation, on a worldwide basis. The U.S. worldwide tax system already puts American businesses at a strong disadvantage to their overseas competitors.

    I have heard from many Iowans frustrated with our tax code. Our outdated tax code creates winners and losers in our economy, adds needless complexity for tax filers, and stifles economic growth with its endless uncertainty. There is little doubt that the tax code is in need of reform. The tax code, last tackled comprehensively in 1986, is suited for a 1986 economy. It needs to be reformed to suit the economic realities of today. It has become needlessly complex and overly burdensome for both individuals and businesses. We need a tax code that is simpler, fairer, and more conducive to economic growth.

    The tax writing Senate Finance Committee, of which I am a senior member and which my party holds the majority in the new Congress, has engaged in numerous discussions to reform the tax code. At the end of the last Congress, former Ranking Member and now Chairman, Senator Hatch, published a staff report detailing specific issues any effort to reform the tax code should look to achieve. You may find the report, called Comprehensive Tax Reform for 2015 and Beyond, at http://www.finance.senate.gov/newsroom/ranking/release/?id=0df91455-c895-49b4-9044-d8fd9873b1dc.

    Additionally, Chairman Hatch has convened five bipartisan working groups to focus on the various sectors of tax reform. I was named a co-chair of the individual income tax working group, one of five separate bipartisan Finance Committee tax working groups convened by the chairman and ranking member. The other working groups are business income tax, savings and investment; international tax; and community development and infrastructure.

    As a co-chair of the individual income tax working group, I want to hear about how best to reform the tax code. I’m looking for input from Iowans on what needs to change in the federal tax code. You can find on my website a survey that asks Iowans to rank priorities and share views on individual tax breaks that are important to their households. Accomplishing tax reform will take all of us working together, from individual taxpayers to Congress to the White House. You can participate in the survey by visiting http://www.grassley.senate.gov/your-priorities-cleaning-tax-code.

    Taxpayers shouldn’t have to hire a professional just to file their taxes. Congress should take on comprehensive tax reform that will increase fairness, reduce complexity and remove barriers to economic growth. I’m glad to offer my experience to this effort, and I’ll share the feedback I hear all the time from Iowans like you about their frustrations with the tax code.

    Momentum is building in Washington for comprehensive tax reform. I am hopeful that these working groups in addition to the tax reform hearings the Finance Committee has held and plans to hold in the future will turn into a bipartisan solution that achieves fairness, simplicity, and economic growth.

    Again, thank you for contacting me. I appreciate hearing your views and urge you to keep in touch.

    Sincerely,
    Chuck

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  21. In his questionnaire

    International tax reform/move toward a territorial system of taxation

  24. At least Grassley says “I hear you,” though the rest of his letter is a rambling swill of noncommitment. I note at the bottom that he is a member of the International Narcotics Control Caucus. I’m thinking of telling him that CBT, FBARs and FATCA are causing many Americans abroad to resort to self-medication.

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