Drudge Retort: The Other Side of the News
Wednesday, January 22, 2014

The Republican Party is expected to approve a resolution this week, calling for repeal of a 2010 law that cracks down on offshore tax dodging. In what would be the party's first appeal to scrap the law -- the Foreign Account Tax Compliance Act (FATCA) -- a panel was slated to vote at the Republican National Committee's winter meetings in Washington, likely approving the resolution on Friday, according to party members driving the repeal effort. If adopted, the anti-FATCA resolution would reflect the party's political priorities for the time being but would not change its presidential campaign platform, according to the RNC.

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Republican Senator Rand Paul last year introduced legislation to repeal parts of FATCA, citing privacy concerns.

Daniel Mitchell, a senior fellow at the Cato Institute, a libertarian think tank, said: "It's hard to imagine an issue this obscure playing a visible role in elections ... It is making overseas Americans far more sympathetic to (Republicans) and could have an impact on fundraising."

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Nevermind the man behind the curtain! Fetal rights! Liberty! Gun rights! Ben Gazzi! Ben Gazzi! Ben Gazzi!

#1 | Posted by DRJIMMIES at 2014-01-22 10:22 AM | Reply | Flag:

RNC members tackle Foreign Account Tax Compliance Act, or FATCA

Republican National Committee members are drafting a resolution calling for the repeal of a soon-to-be-implemented tax law that critics say is contributing to Americans living abroad renouncing their U.S. citizenship in record numbers.

The situation has become so dire that more and more expats are dropping their U.S. citizenship in order to be able to get basic banking services in the countries where they live, according to several expatriate groups.

The number of Americans who've dropped their citizenship has increased from 742 in 2009 to more than 1,854 thus far in 2013, according to the U.S. State Department. Some tax experts and expats believe the number is higher.

Yue's draft resolution charges that FATCA has "inadvertently ensnared every United States citizen living overseas due to its overzealous invasion of privacy and punitive taxation and enforcement."

www.mcclatchydc.com

#2 | Posted by paneocon at 2014-01-22 10:38 AM | Reply | Flag:

FACTA has been a boom for my practice as people who never knew they had to file taxes in the US have been coming forward in droves.

Noting like moving to repeal a law that requires traitorous scum millionaires to report all their legally required taxable income to the IRS to show the public where their true concerns lie.

Jobs bill no.

Letting traitorous scum hide money in offshore accounts yes.

#3 | Posted by 726 at 2014-01-22 10:40 AM | Reply | Flag: | Newsworthy 2

Americans Abroad Can't Bank Smoothly As FATCA Tax Evasion Reform Comes Into Play

Overseas Americans have a tough time opening new bank accounts or have had their existing accounts abruptly closed, ahead of U.S. Treasury reform taking effect next year that aims to combat tax evasion, according to advocates and lawmakers.

But the burdens of complying with the complex law, as well as the steep financial penalties for noncompliance, have simply led some banks to turn away U.S. clients, according to nonprofit advocacy American Citizens Abroad.

"What we're seeing is that many banks, regardless of inter-governmental agreements…just seem to be taking a decision that it's just easier not to provide service to American clients," ACA executive director Marylouise Serrato told International Business Times.

International tax accountant Ryan Dudley, a partner with Friedman LLP, told IBTimes that both U.S. companies and U.S. individuals have been affected. Small and midsized U.S. companies who want to expand overseas have a particular problem obtaining banking services, he said.

"There is almost an expectation that banks, that foreign financial institutions, will cease to do business with U.S. people, in order to avoid FATCA."

www.ibtimes.com

#4 | Posted by paneocon at 2014-01-22 10:43 AM | Reply | Flag:

The GOP defense of this, which is an obvious quid pro quo with their plutocrat base, sounds a lot like their 'family farm' defense of cutting inheritance taxes.
Let's talk some more about how the government can't afford food stamps or unemployment insurance!

#5 | Posted by DRJIMMIES at 2014-01-22 10:48 AM | Reply | Flag:

Foreign Account Tax Compliance Act threatens investment in the U.S.

FATCA is clamping down on overseas earnings but its unintended consequences are threatening to undermine investment in the U.S

Crossbridge, a London-based consultancy for the investment banking industry, estimated recently that compliance costs may be between US$150 million to $200 million for every medium sized bank.

These enormous costs arise from the extensive obligations placed on foreign financial institutions. FATCA requires a FFI to track and identify all U.S. money on behalf of the IRS. This includes ascertaining and disclosing to the IRS the:

If a firm fails to comply with the IRS's disclosure requirements then it will be subjected to a withholding tax of 30 per cent on all U.S. source income. This includes bank deposit interest and the gross proceeds from the sale of U.S. assets.

blogs.reuters.com

#6 | Posted by paneocon at 2014-01-22 10:50 AM | Reply | Flag:

I'm Mitt Romney and I approved this rip off of the American taxpayer. Suckers! The 47% are so annoying.

#7 | Posted by danni at 2014-01-22 10:50 AM | Reply | Flag:

"Crossbridge, a London-based consultancy for the investment banking industry, estimated recently that compliance costs may be between US$150 million to $200 million for every medium sized bank."

And I trust them to be fair and balanced.....right!!!

#8 | Posted by danni at 2014-01-22 10:51 AM | Reply | Flag:

Maybe you clowns should keep to subjects you may understand like, destroying the middle class, spending money we don't have and creating phony wars on everyone?

#9 | Posted by paneocon at 2014-01-22 10:52 AM | Reply | Flag:

"Maybe you clowns should keep to subjects you may understand like, destroying the middle class, spending money we don't have and creating phony wars on everyone?"

Creating phony wars? Did I read that correctly PA NEOCON?

You are a joke!

#10 | Posted by danni at 2014-01-22 10:58 AM | Reply | Flag:


"FATCA Repeal : Tax-Avoiding Super Wealthy with Secret Bank Accounts Find a Friend in GOP"

nomadicpolitics.blogspot.com

#11 | Posted by DRJIMMIES at 2014-01-22 10:59 AM | Reply | Flag:

#8

I agree with Danni. If these foreign banks want to house US money, they should comply with our tax laws. Every bank in the US has to send out a 1099 for interest. Every US based brokerage house has to send me a tax form to capture "foreign interest" in some of my investments that involve foreign companies.

It's quite possible if not likely that they are overstating their costs to comply with this.

#12 | Posted by eberly at 2014-01-22 11:00 AM | Reply | Flag:

FATCA will not achieve its purpose

FATCA will lead to a two-tier banking system worldwide

The costs of implementing FATCA are absolutely disproportionate to the expected additional tax revenue

The IRS does not need FATCA to pursue tax evaders.

American citizens have become pariahs in the international financial community because of FATCA.

Business opportunities for Americans overseas are blocked.

FATCA automatically categorizes any American abroad as suspect and ostensibly discriminates against Americans abroad.

The rapid rise in renunciations of U.S. citizenship over the last four years is directly linked to FATCA.

An immediate impact of FATCA is a serious reconsideration by foreigners of the risks and dangers of investing in the United States

FATCA creates a new barrier to U.S. exports.

Finally, FATCA creates systemic risks for the entire international financial community, through potential processing errors, chain effect, misinformation, etc. One measure of the law – the passthru deemed essential by Congress for an air-tight system – has been defined as unworkable by the British Bankers' Association and even by one of the authors of FATCA legislation, J. Richard Harvey, of Villanova
University.ii FATCA is bad law on all fronts and should be repealed.

waysandmeans.house.gov

#13 | Posted by paneocon at 2014-01-22 11:02 AM | Reply | Flag:

#11 | POSTED BY DRJIMMIES

I give you established business publications and you give me a blog post in a progressive on-line magazine. Grow up will you.

#14 | Posted by paneocon at 2014-01-22 11:04 AM | Reply | Flag:


I give you established business publications and you give me a blog post in a progressive on-line magazine. Grow up will you.

#14 | Posted by paneocon at 2014-01-22 11:04 AM

No you don't. You give opinion pieces with questionable and/or biased sources, as usual.

#15 | Posted by DRJIMMIES at 2014-01-22 11:08 AM | Reply | Flag:

Now let's talk about how the deficit and 'regulations' are the cause of income inequality.

#16 | Posted by DRJIMMIES at 2014-01-22 11:10 AM | Reply | Flag:

An exclamation for the learning impaired.

FATCA: A Ticking Time Bomb for the Economy

Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant. One day he buys 10,000 shares of XYZ at $25 per share, and the next day, he takes advantage of a nice uptick of $1.00 in XYZ and sells at $26 per share. He makes a tidy profit of $10,000. But because his broker is non-compliant, the IRS now withholds 30% -- not of the profit, but of the gross proceeds of the sale! So the client now receives the sum of $260,000 minus 30%. The foreign investor is unhappy because his $250,000 investment has become $182,000. If he wants his money back, he must file a U.S. tax return.
No investor would accept such conditions. Hence, an FFI must either comply with the invasive regulations of FATCA or simply abandon the U.S. markets.

Richard W. Rahn writes in the Washington Post that FATCA has already sent foreign capital fleeing. He claims that the people running Washington are "mental midgets" unaware of how their policies affect the economy. He estimates that FATCA will cause the departure of an estimated $14 trillion of private foreign investment, destroying as many as 10,000,000 jobs in the United States

www.americanthinker.com

#17 | Posted by paneocon at 2014-01-22 11:12 AM | Reply | Flag:

#13

fair enough, then where it the bill to replace FATCA with something that accomplishes what it should and not make doing business abroad so cumbersome and difficult?

I think it's dangerous to just repeal something without a replacement bill that, as you say, will "pursue tax evaders"

#18 | Posted by eberly at 2014-01-22 11:13 AM | Reply | Flag:

"Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant."

how many are compliant vs non-compliant? perhaps the foreign investor can just use a FATCA compliant brokerage house?

I'm not trying to pretend I know the ramifications....just playing devils' advocate.

#19 | Posted by eberly at 2014-01-22 11:15 AM | Reply | Flag:

No you don't. You give opinion pieces with questionable and/or biased sources, as usual.
#15 | POSTED BY DRJIMMIES

Yes a bias towards FACTS, you really should try it some day.

McClatchy DC
Reuters
International Business Times
House Ways and Means

#20 | Posted by paneocon at 2014-01-22 11:16 AM | Reply | Flag:

Oh wow. another Cato Institute drone. Like I said, opinion pieces from poor and/or biased sources.

www.cato.org

The Cato Institute is a non-partisan libertarian think tank headquartered in Washington, D.C. The Institute states that it favors policies "that are consistent with the traditional American principles of limited government, individual liberty, and peace." [1] Cato scholars conduct policy research on a broad range of public policy issues, and produce books, studies, op-eds, and blog posts. They are also frequent guests in the media.

Where ideology and science part company, Cato favors ideology, as shown by their open letter[2] published in newspapers in 2009[3] disputing the state of the science on climate change.[4]

www.sourcewatch.org

#21 | Posted by DRJIMMIES at 2014-01-22 11:16 AM | Reply | Flag:

#18 | POSTED BY EBERLY

There were already means to track this money as American's Citizens living abroad are required to file complete IRS tax forms.

#22 | Posted by paneocon at 2014-01-22 11:18 AM | Reply | Flag:

Dick Rahn, another supply side failure. If you linked to Mittens as quoting that load of crap it would mean more.

#23 | Posted by 726 at 2014-01-22 11:19 AM | Reply | Flag:

#21 | POSTED BY DRJIMMIES

Get a grip, will you.

Richard W. Rahn (born January 9, 1942, in Rochester, New York) is an American economist who frequently writes for The Washington Times. He was the Vice President and Chief Economist of the United States Chamber of Commerce during the Reagan Administration and remains a staunch advocate of Supply-side economics, Small government, and Classical liberalism. A senior fellow of the Cato Institute, Rahn received his M.B.A. from Florida State University, his Ph.D. from Columbia University, and an honorary Doctor of Laws from Pepperdine University.[1]

His articles have appeared in many newspapers and magazines, including The New York Times, The Wall Street Journal, The American Spectator, National Review, and international publications. From 2002 to 2008 he served on the Board of Directors of the Cayman Islands Monetary Authority.[2]

Rahn is currently chairman of the Institute for Global Economic Growth, an organization that assists nations in implementing supply-side or "pro-growth" reforms.[3] According to his profile on the IGEG website he is a member of the Mont Pelerin Society, sits on the boards of numerous think-tanks and advocacy groups, and has testified on economic issues before the U.S. Congress over seventy-five times.[4] Rahn is also an Adjunct Professor at the Institute of World Politics.[5]

en.wikipedia.org

#24 | Posted by paneocon at 2014-01-22 11:21 AM | Reply | Flag:

Just "conservative" republicans doing the "Will of the People", again.

Of course, only .05% of the actual "people" want this repealed --- unlike let's say the 80% who want the patriot act rescinded (yet to hold a single vote).

#25 | Posted by ChiefTutMoses at 2014-01-22 11:22 AM | Reply | Flag:

The "objective" Republican House Ways and Means Committee, rofl.

1 percenter wannabes will do anything for their Massas.

"Don't hit me, Massa! I done voted for Mitt!"

#26 | Posted by Corky at 2014-01-22 11:22 AM | Reply | Flag:

"Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant."

Let's suppose that an investor is smart enough to only deal with a reputable broker.

#27 | Posted by danni at 2014-01-22 11:23 AM | Reply | Flag:

"Richard W. Rahn (born January 9, 1942, in Rochester, New York) is an American economist who frequently writes for The Washington Times."

Nuf said.

#28 | Posted by danni at 2014-01-22 11:24 AM | Reply | Flag:


#24 | Posted by paneocon at 2014-01-22 11:21 AM

From the Cato website:


Dr Rahn served for two terms (2002-2008) as the first non-Caymanian member of the Board of Directors of the Cayman Islands Monetary Authority, which regulates the world's largest offshore financial center.

www.cato.org

So Panny brings out a former director of the Cayman Islands Monetary Authority to defend the GOP's attempt to repeal a law designed to stop the rich from using foreign banks to cheat on their taxes. Priceless.

#29 | Posted by DRJIMMIES at 2014-01-22 11:26 AM | Reply | Flag: | Newsworthy 2

"There were already means to track this money as American's Citizens living abroad are required to file complete IRS tax forms."

I understand that but all institutions I work with currently all send me compliant tax forms that I'll file with my return and the IRS knows about every single one of those forms and they (my brokerage houses) file them as well.

Can the same be said for these non-compliant FATCA firms? What compels a US citizen living abroad to include interest/dividends/capital gains from a brokerage house that's non-FATCA compliant?

#30 | Posted by eberly at 2014-01-22 11:27 AM | Reply | Flag:

"The Cato Institute is a non-partisan libertarian think tank headquartered in Washington, D.C. The Institute states that it favors policies "that are consistent with the traditional American principles of limited government, individual liberty, and peace." [1] Cato scholars conduct policy research on a broad range of public policy issues, and produce books, studies, op-eds, and blog posts. They are also frequent guests in the media."

Non-partisan libertarian? Really?

"that are consistent with the traditional American principles of limited government, individual liberty, and peace."
Only "traditional" because they think they can claim American tradition and define it their own way. It's utter B.S.

#31 | Posted by danni at 2014-01-22 11:27 AM | Reply | Flag:

Wow the who clown car posse is here, and yet not a single clue amongst you. It been fun smacking you around but I've got so do my capitalist pig gig for a while. See if in the mean time you can address the down falls of this stupid law with a little common sense and not your usual "If a Democrat wrote it and Obama signed it, it's got to be right" mantra.

#32 | Posted by paneocon at 2014-01-22 11:28 AM | Reply | Flag:

www.sourcewatch.org

http://www.sourcewatch.org/ index.php/ Atlas_Economic_Research_Founda tion

Rwinger Paradise.

#33 | Posted by Corky at 2014-01-22 11:29 AM | Reply | Flag:

who = whole

#34 | Posted by paneocon at 2014-01-22 11:29 AM | Reply | Flag:

www.sourcewatch.org

#35 | Posted by Corky at 2014-01-22 11:29 AM | Reply | Flag:

I'm guessing here as I don't really know but in a simplified way, if I'm an American living abroad and I can realize $150K in dividends/interest/capital gains through a brokerage house I know will send my information to the IRS or I can work with a brokerage house who will ensure the same return but they won't send my information to the IRS....which one am I tempted to use?....especially if I'm an American already living abroad?

maybe this is why these brokerage houses are in demand??

#36 | Posted by eberly at 2014-01-22 11:33 AM | Reply | Flag:

Can't deal with the facts and the effects of your idiot presidents' laws so you have to attack the sources. If that's all you got, my work is done here.

#37 | Posted by paneocon at 2014-01-22 11:34 AM | Reply | Flag:


#32 | Posted by paneocon at 2014-01-22 11:28 AM

"'Tis but a scratch!": Panny is the DR right-wing's black knight.

www.youtube.com

#38 | Posted by DRJIMMIES at 2014-01-22 11:36 AM | Reply | Flag: | Funny: 1

#36 | POSTED BY EBERLY

You are asking so e good questions I would read up on this law a little and I think you will see it is not going to accomplish it's intent and will do far more damage if it is put in place. I have no issue catching tax evaders, this just isn't the way.

#39 | Posted by paneocon at 2014-01-22 11:37 AM | Reply | Flag:

so e = some

#40 | Posted by paneocon at 2014-01-22 11:40 AM | Reply | Flag:

The whining from those who want to hide earnings and assets from the government just proves that the is a great deal of hiding going on and that those doing it want to continue doing it. I have no sympathy for the "Mitt Romneys" of this world.

#41 | Posted by danni at 2014-01-22 11:45 AM | Reply | Flag:

"I have no issue catching tax evaders, this just isn't the way."

How else are you going to accomplish it except by getting agreements between nations to report to each other? You pretend to want to catch tax cheaters but you don't want any realistic means of doing so to exist.

#42 | Posted by danni at 2014-01-22 11:47 AM | Reply | Flag: | Funny: 1

"would read up on this law a little and I think you will see it is not going to accomplish it's intent"

It has been estimated that the U.S. Treasury loses as much as $100 billion annually to offshore tax non-compliance.

Yup, that's no big deal!

How "fiscally" retarded and incredibly irresponsible can one clique of ------------- get.

#43 | Posted by ChiefTutMoses at 2014-01-22 11:47 AM | Reply | Flag:

Ya'll don't pick on Pcon, now.

Mitt! Thong sales have taken a nose dive recently.

#44 | Posted by Corky at 2014-01-22 11:52 AM | Reply | Flag:

Seems like republicans no longer wish to hide that they are owned by the rich.

#45 | Posted by ClownShack at 2014-01-22 11:53 AM | Reply | Flag:

Seems like republicans no longer wish to hide that they are owned by the rich.

Are you implying that democrats aren't?

#46 | Posted by goatman at 2014-01-22 11:57 AM | Reply | Flag:

"Richard W. Rahn writes in the Washington Post that FATCA has already sent foreign capital fleeing. He claims that the people running Washington are "mental midgets" unaware of how their policies affect the economy. He estimates that FATCA will cause the departure of an estimated $14 trillion of private foreign investment, destroying as many as 10,000,000 jobs in the United States"

Hilarious.

#47 | Posted by danni at 2014-01-22 12:07 PM | Reply | Flag:

#47 | POSTED BY DANNI

Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant. One day he buys 10,000 shares of XYZ at $25 per share, and the next day, he takes advantage of a nice uptick of $1.00 in XYZ and sells at $26 per share. He makes a tidy profit of $10,000. But because his broker is non-compliant, the IRS now withholds 30% -- not of the profit, but of the gross proceeds of the sale! So the client now receives the sum of $260,000 minus 30%. The foreign investor is unhappy because his $250,000 investment has become $182,000. If he wants his money back, he must file a U.S. tax return.
No investor would accept such conditions.

You have proven by your posts that you are just the kind of investor that would accept such conditions. i.e. not real bright.

#48 | Posted by paneocon at 2014-01-22 12:11 PM | Reply | Flag:

Jobs bill no.

Letting traitorous scum hide money in offshore accounts yes.

#3 | Posted by 726 at 2014-01-22 10:40 A

no..

oh NO NO NO NO NO !!!

'you people' are NOT getting away with a thread like this after there was ONE TAX CHEAT AFTER another named to the obama administration and you didn't care....you made excuses for it and some even celebrated these TAX CHEATS when they were dems and in the obama first white house

pathetic..

hypocrites..

pathetic...

#49 | Posted by afkabl2 at 2014-01-22 02:01 PM | Reply | Flag: | Newsworthy 1

As bad as both parties are there are real reasons to vote against the Rethugs and this is certainly one of them.

#50 | Posted by nutcase at 2014-01-22 02:16 PM | Reply | Flag:

The tax system we have is totally unfair. Is Charles Rangel the only one allowed to avoid paying taxes? Well he did it illegally. Tax shelters are legal.

Tax avoidance is not only legal, but the duty of any CEO of a company. They are charged with making as much money as possible and paying as little taxes as legally possible.

It is a travesty that the US demands US Citizen pay taxes on earnings no matter where they live in the world. If you move to Italy, earn an income, and are a US citizen, you owe taxes in the US. Ridiculous. That's why Eduardo Saverin renounced his citizenship.

#51 | Posted by sames1 at 2014-01-22 02:36 PM | Reply | Flag:

#50 | POSTED BY NUTCASE

So what is your issue with this.

The fact that folks are putting unrecorded profits overseas?

Or is it that the way this bill is written it will destroy overseas investment in America?

#52 | Posted by paneocon at 2014-01-22 04:17 PM | Reply | Flag:

How else are you going to accomplish it except by getting agreements between nations to report to each other? You pretend to want to catch tax cheaters but you don't want any realistic means of doing so to exist.

#42 | Posted by danni at 2014-01-22 11:47 AM | Reply | Flag:

But, but Danni: that's the GOP way: "we care about America, or at least the America that we broadcast to you using our gazillionaire-funded shell PACs."

#54 | Posted by e1g1 at 2014-01-22 05:24 PM | Reply | Flag:

Why must we continue to suffer fools? (GOP)

Just when does their shenanigans outweigh voting for the white party?

Get your ----- together!!

#55 | Posted by fresno500 at 2014-01-22 07:36 PM | Reply | Flag:

how much longer must we suffer from the decisions of the 'low information voter' that according to time magazine editor was the difference in the last election?

how much longer do we have to see the constitutional rights of american citizens abused and ignored and neglected by this lying potus when it comes to no equal protection under the law with the obama hatred driven IRS?

and on and on and on.....and liberals aren't even smart enough to see what they and this man is doing OR they support the end of this once great constitutional republic because of a thirst for power and an oligarchy that makes the BUSH oligarchy they all warned us about look timid and weak and STILL you simply don't care.

OH wait..I wrote all of that without calling 'you people' fools or misspelled a popular profane word making people think I really WASN"T using it....

ha ha ******** ha !

#56 | Posted by afkabl2 at 2014-01-22 07:45 PM | Reply | Flag:

Seems like republicans no longer wish to hide that they are owned by the rich.

Are you implying that democrats aren't?
#46 | POSTED BY GOATMAN AT 2014-01-22 11:57 AM

Am I implying that democrats aren't owned by the rich? Thats not what my statement says.

I said: Republicans no longer wish to hide that they are owned by the rich.

#57 | Posted by ClownShack at 2014-01-22 08:01 PM | Reply | Flag:

Political posturing.

There is one party in this country: the property party.

#58 | Posted by Shawn at 2014-01-22 10:03 PM | Reply | Flag:

I should probably say something about how horrible this non-binding RNC resolution is, but I am still chuckling over the fact that Congress named the law going after offshore tax evaders the FATCAt law...

en.wikipedia.org(term)

#59 | Posted by bartimus at 2014-01-22 10:41 PM | Reply | Flag:

You do realize the IRS was targeting all groups equally don't you?

Stop screaming about it, makes it hard to take anything seriously.

#60 | Posted by drewl at 2014-01-23 08:24 AM | Reply | Flag:

I thought the headline was wrong.

Why would the GOP be protecting Democrat tax evaders?
Democrats are the ones who blatently ignore tax laws.
Check Obamas people, they have that as a prerequisite.

#61 | Posted by Marty at 2014-01-23 10:34 AM | Reply | Flag:

pcon,

You do not pay US taxes if you work more than 18 months overseas. But the huge tax revenue losses the Rethugs are trying to protect work like this. Create a shell company in a tax free country. Move product accounting (without moving product) to the tax free country. Declare zero profits in the country of production and nation of residency. Pretend to sell out of the tax free country for a profit and hide the money somewhere, like maybe Switzerland. Marc Rich is a billionaire offender, scamming hundreds of millions in tax evasion. FATCA says you cannot do that and that is why Marc Rich was under indictment. The fact that he sold oil to Iran without creating a shell company is peanuts compared to his other crimes.

#62 | Posted by nutcase at 2014-01-23 12:25 PM | Reply | Flag:

These people are destroying the lives of the worlds populace by hoarding the worlds wealth.

The day will come when this is no longer tolerated when we will all work toward the betterment of mankind.

#63 | Posted by drewl at 2014-01-23 01:47 PM | Reply | Flag:

"The number of Americans who've dropped their citizenship has increased from 742 in 2009 to more than 1,854 thus far in 2013, according to the U.S. State Department. Some tax experts and expats believe the number is higher."

I actually expect there to soon be consultants available to provide guidance to wealthy americans seeking to find countries that provide more suitable tax environments. And probably domestically as well, providing guidance for those in high tax states on which states have tax codes that would be most beneficial to them.

"Letting traitorous scum hide money in offshore accounts yes."

Traitorous scum?

Do you share the same opinion of the roughly half of US citizens that don't pay federal income tax?

Let's talk some more about how TAXPAYERS DON'T WANT TO afford food stamps or unemployment insurance!

FTFY

"I agree with Danni. If these foreign banks want to house US money, they should comply with our tax laws."

It's not US money dude. It belongs to the person who earned it. That's your first problem. Overseas banks should have no more an obligation to report to the IRS than US banks should have to report to overseas tax agencies.

#

#64 | Posted by madbomber at 2014-01-23 02:40 PM | Reply | Flag: | Newsworthy 1

You do not pay US taxes if you work more than 18 months overseas
#62 | POSTED BY NUTCASE

But you do have to file a tax return if you maintain your US citizenship.

But the huge tax revenue losses the Rethugs are trying to protect work like this.
#62 | POSTED BY NUTCASE

That is an absurd statement and you CAN'T back it up. This is about foreign investment in America and about compliance costs over seas penalizing Americans working over seas.

You fail to address this statement as has everyone else here and it is the heart of the issue.

Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant. One day he buys 10,000 shares of XYZ at $25 per share, and the next day, he takes advantage of a nice uptick of $1.00 in XYZ and sells at $26 per share. He makes a tidy profit of $10,000. But because his broker is non-compliant, the IRS now withholds 30% -- not of the profit, but of the gross proceeds of the sale! So the client now receives the sum of $260,000 minus 30%. The foreign investor is unhappy because his $250,000 investment has become $182,000. If he wants his money back, he must file a U.S. tax return.
No investor would accept such conditions.

#65 | Posted by paneocon at 2014-01-23 02:48 PM | Reply | Flag:

"Overseas banks should have no more an obligation to report to the IRS than US banks should have to report to overseas tax agencies."

Foreign nations enter into agreements to report because we will reciprocate. There are trillions stashed out of the sight of many nations, now with more and more nations reporting to each other it will become increasingly difficult to hide it from your government and will force these depositors to pay the taxes they owe.

#66 | Posted by danni at 2014-01-23 02:48 PM | Reply | Flag:

"Let's suppose that a foreign investor trades stocks on a U.S. exchange, but his broker is FATCA non-compliant."

Then he will find a broker that is FATCA compliant.

#67 | Posted by danni at 2014-01-23 02:49 PM | Reply | Flag:

"It's not US money dude. It belongs to the person who earned it."

Under U.S. law American citizens still owe tax on that money. We're not debating that, we're discussing a method for the government to be able to collect those taxes.

#68 | Posted by danni at 2014-01-23 02:51 PM | Reply | Flag:

FATCA Undermines Cross-Border Economic Activity

The U.S. Foreign Account Tax Compliance Act (FATCA) has created a giant nightmare for all sorts of people and firms -- including international financial institutions that may now decide that it's no longer worth the trouble to invest in America.

Passed in 2010 as part of the Hiring Incentives to Restore Employment Act, FATCA threatens international financial centers with a 30% withholding requirement on U.S. accounts if they don't comply with an onerous new reporting regime.

Terry Campbell, head of Canada's banking association, points out, the rules are essentially akin to "conscripting financial institutions around the world to be arms of US tax authorities". …the IRS is threatening to impose a withholding tax of up to 30 per cent on sales of US assets by groups that it deems to be "non-compliant" -- and the assets could include US shares or US Treasury bonds. Hence the fact that some non-US asset managers and banking groups are debating whether they could simply ignore Fatca by creating subsidiaries that never touch US assets at all. "This is complete madness for the US -- America needs global investors to buy its bonds," fumes one bank manager. "But not holding US assets might turn out to be the easiest thing for us to do." …"Right now my board is probably as concerned about political risk in America as Indonesia, from a business perspective -- perhaps more so," says the head of one large global bank. It is a complaint that American politicians ignore at their peril.

www.taxcompetition.org

#69 | Posted by paneocon at 2014-01-23 02:52 PM | Reply | Flag:

I wouldn't take the Republicans too seriously. They know it has no chance of passing. But it looks good their core voters.

#70 | Posted by Ray at 2014-01-23 03:06 PM | Reply | Flag:

But it looks good their core voters.

So they are wasting time and accomplishing nothing to look good for their core voters?

F them!

#71 | Posted by ClownShack at 2014-01-23 03:08 PM | Reply | Flag:

So they are wasting time and accomplishing nothing to look good for their core voters?

Politicians don't get elected because of their wisdon and knowledge. They are there because they are very good at lying and manipulating.

F them all!

#72 | Posted by Ray at 2014-01-23 03:18 PM | Reply | Flag:

#70 | POSTED BY RAY

I disagree. Democrats F'ed up here and if this is left as is it will come back to bite Dems in the butt so I would expect some quiet resolution inserted some other bill to fix this problem.

#73 | Posted by paneocon at 2014-01-23 03:19 PM | Reply | Flag:

I bet tax dodgers are spending more money to defeat this bill than they would have had to pay in taxes.

#74 | Posted by ClownShack at 2014-01-23 03:26 PM | Reply | Flag:

Scratched by the FATCA

Congress creates a bureaucratic nightmare for fund managers

CATCHING tax cheats is well and good in theory. Achieving that feat in practice is another matter. As fund managers are finding, the latest effort from the American authorities to root out those of their citizens who have been hiding their assets overseas is creating a bureaucratic nightmare around the world.

The operation of the Foreign Account Tax Compliance Act (FATCA) has already been postponed for a year because of the immense problems that it is going to cause global investors. The law requires that foreign financial institutions (a category that seems to include everybody from financial advisers to pension funds) register with the Internal Revenue Service by June 30th 2013. If they do not register, they will then be regarded as "non-participating". In that case a 30% withholding tax will be applied to all their income on American assets from 2014 as well as to the proceeds from the sales of these assets from 2015.

If the process is not made simpler or less costly, fund managers may be forced to take drastic measures. One approach would be to bar Americans from investing in their funds, or to require them to own separate classes of shares.

Another approach would involve some global funds avoiding American assets entirely. That can hardly be what Congress had in mind.

www.economist.com

#75 | Posted by paneocon at 2014-01-23 03:47 PM | Reply | Flag:

I disagree. Democrats F'ed up here and if this is left as is it will come back to bite Dems in the butt so I would expect some quiet resolution inserted some other bill to fix this problem.
#73 | Posted by paneocon

I think you are proving my point: it looks good to core voters and they know it won't go anywhere. Politicians DON'T act on principle or in the interests of the people, only to fool the people.

#76 | Posted by Ray at 2014-01-23 03:59 PM | Reply | Flag:

"We're not debating that, we're discussing a method for the government to be able to collect those taxes."

Um, maybe through the IRS?

In any case it shouldn't interfere with global commerce, which it apparently does.

#77 | Posted by madbomber at 2014-01-23 04:52 PM | Reply | Flag:

Um, maybe through the IRS?

Maybe thats why the IRS has been checking into everyone's finances.

#78 | Posted by ClownShack at 2014-01-23 04:53 PM | Reply | Flag:

There is one party in this country: the property party.

#58 | Posted by Shawn at 2014-01-22

I'm sure that includes the party of death.

#79 | Posted by afkabl2 at 2014-01-23 09:00 PM | Reply | Flag:

Yup, getting caught cheating on your taxes is a nightmare. The issue is its a nightmare. The tax cheating shouldn't matter at all.

#80 | Posted by nutcase at 2014-01-23 11:35 PM | Reply | Flag:

Sen. Max Baucus and Rep. Charles Rangel sponsored FATCA to nab all those rich jerks that are avoiding taxes...

Ooops... Charles Rangel is a tax cheat...... Sen Baucus is in the pockets of the health care industry and ... Well one of the bills amendments was put in by Harry Reid who... oh oops.. he is being investigated for ethics.

But we must get those dirty rich people that invested their own money, worked hard, and have done nothing illegal but try to pay the least in taxes possible.

#81 | Posted by sames1 at 2014-01-24 12:55 AM | Reply | Flag:

Sen. Max Baucus and Rep. Charles Rangel sponsored FATCA to nab all those rich jerks that are avoiding taxes...

Ooops... Charles Rangel is a tax cheat...... Sen Baucus is in the pockets of the health care industry and ... Well one of the bills amendments was put in by Harry Reid who... oh oops.. he is being investigated for ethics.

But we must get those dirty rich people that invested their own money, worked hard, and have done nothing illegal but try to pay the least in taxes possible.

#82 | Posted by sames1 at 2014-01-24 01:00 AM | Reply | Flag:

'you people' are NOT getting away with a thread like this after there was ONE TAX CHEAT AFTER another named to the obama administration and you didn't care....you made excuses for it and some even celebrated these TAX CHEATS when they were dems and in the obama first white house
pathetic..
hypocrites..
pathetic...

#49 | POSTED BY AFKABL2 AT 2014-01-22 02:01 PM | FLAG:

You people don't seem to understand that I want all tax evaders caught and penalized. It is clear that you people don't.

So you can take your fauxrage elsewhere.

#83 | Posted by 726 at 2014-01-24 09:51 AM | Reply | Flag:

Traitorous scum?
Do you share the same opinion of the roughly half of US citizens that don't pay federal income tax?

#
#64 | POSTED BY MADBOMBER AT 2014-01-23 02:40 PM | REPLY | FLAG:

If they are not paying tax by illegally hiding income yes.

If they are not paying tax because they do not have enough income to be required to pay taxes no.

Some of the fine examples of the 47% that pay no income tax are retired people living on social security and the military. Now if you want to call the military traitorous scum, feel free. I know a few Marines that would be happy to let you exercise your free speech before they shove their fist down your throat.

When you take a complex issue like taxation and taxable income and try to boil it down to a one sentence idiotic talking point you end up looking like an idiot.

Try to remember that in the future.

#84 | Posted by 726 at 2014-01-24 10:00 AM | Reply | Flag:

for afkunable, "you" defines "every liberal" and everything anyone but a Republican believes. This is called "projection", and is delusional and totally devoid of supporting examples.

#85 | Posted by nutcase at 2014-01-24 11:33 AM | Reply | Flag:

"If they are not paying tax because they do not have enough income to be required to pay taxes no."

Got it. Some people shouldn't have to pay taxes. Others should have to cover that burden for them. Disagreeing with that position makes them traitorous scum.

"Some of the fine examples of the 47% that pay no income tax are retired people living on social security and the military. Now if you want to call the military traitorous scum, feel free. I know a few Marines that would be happy to let you exercise your free speech before they shove their fist down your throat."

I'm in the military, genius.

"When you take a complex issue like taxation and taxable income and try to boil it down to a one sentence idiotic talking point you end up looking like an idiot."

You mean like when you refer to non-taxpayers as "traitorous scum?" That sort of idiotic talking point?

It's not that I'm even disagreeing with you. if you owe taxes, it's your obligation to pay them. But it's not the responsibility of foreign banks to provide the US financial data on it's customers.


#86 | Posted by madbomber at 2014-01-24 11:56 AM | Reply | Flag:

It is if their governments order them to, it also is if they want to do business with American banks.

#87 | Posted by danni at 2014-01-24 12:02 PM | Reply | Flag:

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