Summary of all the taxes resulting form the decision of the #SCOTUS upholding #Obamacare http://t.co/I2Q5pZYE U.S. citizenship too complex
— U.S. Citizen Abroad (@USCitizenAbroad) June 30, 2012
HR Block excited: #obamacare will have "enormous ramifications for how Americans file taxes each year going forward" http://t.co/ShQsMkvi
— U.S. Citizen Abroad (@USCitizenAbroad) July 1, 2012
Oh my God. How is such bureaucracy possible? Run.
Cross-posted from the Flophouse. Just can’t get over some of the strange results of U.S. citizenship law. The more I think about it neither jus soli or jus sanguinis are good fits in a globalized world. So I had some fun writing this post and pointing out two rather famous Accidental Americans: Boris Johnson and Anne Sinclair. If you have a chance go read Boris Johnson’s 2006 post – as one of the Flophouse readers said, “I didn’t know Mr Johnson’s prose could be so entertaining to read.”
The United States of America allows for two methods for acquiring U.S. citizenship at birth: jus sanguinis (through an American citizen parent) and jus soli (through being born on U.S. soil). For the latter the U.S. has one of the most open-ended and generous terms around – the mere fact of being born on U.S. soil makes someone a U.S. citizen under almost all circumstances. (The only exceptions appear to be children of diplomats.)
I wonder if the US government ever considered the possibility that 6+ million snail mail letters from around the world and addressed to the “United States Department of the Treasury”, containing the sensitive whereabouts and financial data of targets of terrorism, would fall into the wrong hands while being passed around from one foreign stranger to another during its long global travel to Detroit.
“U.S. citizens are reminded to maintain a high level of vigilance and to take appropriate steps to increase their security awareness… The Department of State remains concerned about the continued threat of terrorist attacks, demonstrations, and other violent actions against U.S. citizens and interests overseas… The threat of attacks against U.S. citizens, including kidnapping and terrorist violence, is expected to continue…”
U.S. Department of State – Worldwide Caution“In today’s society, the old mailbox needs to go away,” he said. “I think you need to be real careful now and get a secured mailbox.”
200 in county recent victims of mail theft
SC upholds Obamacare because it is a tax – Homelanders join #americansabroad in paying tax on "unearned income" http://t.co/y5u0SkkD #FATCA
— U.S. Citizen Abroad (@USCitizenAbroad) June 28, 2012
In the fall I wrote a post describing how Obamacare is to be funded by taxing “unearned income”. This is one of many examples where the US taxes income that people have never earned. I am cross-posting this post from the RenounceUScitizenship blog. After publishing this post, I noted some very interesting comments, including some based on “technicalities” from Shadow Raider and Eric. These comments raised questions, about what would be included in, and what was meant by “unearned income”. Interesting comments. I have updated this post to acknowledge your comments. But, I will leave it to you to sort out the details. Suffice it to say that Obamacare is a massive tax increase that will make U.S. tax compliance even more difficult. In addition, Obamacare will certainly increase the role of the IRS in your life in a more supervisory way.
Note the following comments of Commissioner Shulman in this regard:
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The situation is indeed dismal. I don’t understand everything in the following article, but I can see that this is going to:
1. Add more bureaucracy and cost to filing your U.S. tax return – it is not clear how this is intended to impact expats (if they are considered at all);
2. Clearly interfere with your ability to invest and plan for retirement. The U.S. has become a nation of forms and bureaucracy. Continue reading
English: http://www.bbc.co.uk/news/world-us-canada-18630837
Swiss French: http://www.rts.ch/info/monde/4105523-la-reforme-sante-d-obama-passe-la-rampe-de-la-cour-supreme.html
Here is the text of the SCOTUS ruling: http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf
I don’t have much to say about this yet. I would like to read through the ruling first. I think that universal health care coverage is a good idea (as long as there is some flexibility and freedom of choice, e.g. the Swiss system). However I don’t think that Obamacare should have been introduced in the middle of a recession. FDR did something similar in the 30’s with the introduction of some social programs that homelanders still have access today, but the national debt wasn’t in the 30s what it is today.
As I said elsewhere at Isaac Brock Society, I seem to remember that the final Obamacare bill exempted USPs abroad from the insurance requirement. I believe that insurance companies will no longer be able to discriminate on the basis of pre-existing conditions from (2014?), however I am not sure that this applies to USPs abroad who return (those that really want to after all Unca Sam has done to mess up our lives).
#IRS releases new FAQs for Offshore Voluntary Disclosure Program, announces other rules: http://t.co/PYvupcTB
— JournalofAccountancy (@AICPA_JofA) June 28, 2012
A reader posted a comment with this article:
Dr. Saud Al-Ammari is Managing Partner, Saudi Arabia & Gulf Region, Blake, Cassels & Graydon LLP, Al Khobar, Kingdom of Saudi Arabia. He has experience in a wide variety of corporate and commercial matters inside and outside the Kingdom. He served for ten years as special counsel and later general attorney for Saudi Aramco. Dr. Saud participated as legal counsel and a member of the team negotiating the Kingom’s accession to the World Trade Organization and served as chairman of OPEC’s legal defense team.
Here is a salient point:
The unintended consequences of taxing expatriate Americans by the US Government is that fewer of them seek employment overseas, and even fewer are hired by global firms. With fewer proponents of American goods and services who can influence buying decisions, there are fewer exports made by domestic companies, and in turn, fewer jobs in America. Ultimately, the US Treasury collects less overall revenue and America has a less competitive economy.
Thus Dr. Al Ammari agrees 100% with Roger Conklin.
According to CNN (via Business Insider), the US government spent $3 million to inform the public about their eligibility for food stamps. I once lamented that I didn’t know where in Toronto to sign up for US Federal Welfare, Unemployment Insurance or Food Stamps. Now at least for Supplemental Nutrition Assistance Program (SNAP), there is a screening tool to see if I am even eligible. So I thought, “Why not, if the US wants to give me free money?” So I tried the screening tool. But I was thwarted by the first drop down menu. I couldn’t find Ontario. Crap!
“No Address, No Voter Registration. That is the Law!”
Kentucky Board of Elections
Sounds great for non-expats, I guess. Officially, my address claims that I live in Lexington, Kentucky, inside of the Voter Registration Department, to be precise, since I don’t have any other US address that can be accepted for voting purposes. Come by early in the morning and you might get a glimpse of me brushing my teeth over a lost ballot or a misplaced voters registration application, it would seem. Yet, I actually live in Cheyenne, Wyoming, the mail carrier would say, but I am not allowed to officially live there because my address….
A mail forwarding address cannot be used for voter registration purposes.
Your Best Address
TAS has released the 2013 Objectives Report to Congress. Issues specifically addressing us begin on p 21 and end on p 31.
Given we have just become aware of IRS’ new program for “low risk” filers, this report suggests TAS is having an effect on IRS policy.
I have omitted discussions and footnotes and just listed the major sections so we can begin to examine them.
[21] F. TAS Will Continue Advocating for American Taxpayers Abroad Who Are Expressing Fear and Frustration about FBAR, FATCA and Other International Penalties …
