FrankRep
06-18-2008, 05:16 PM
America's Berlin Wall
John Birch Society (http://www.jbs.org/)
June 18, 2008
ARTICLE SYNOPSIS:
The flight option in the "fight or flight" decision has become more expensive. An "exit tax" has been passed to deter those seeking to give up their U.S. citizenship and residency.
Follow this link to the original source: "Exit Tax for U.S. Expatriates to Become Law (http://www.withersworldwide.com/news-publications/324/exit-tax-u-s-expatriates-to-become-law.aspx)"
COMMENTARY:
Some Americans of means have defered from taking part in the ongoing fight for freedom. Their rationalization for inaction often goes like this: "Well, if it really get's bad in our country, I'll just leave."
We are all fortunate that their logic still works. However, the U.S. Congress has finally carried through on its threat to make the option of giving up on the United States a much more expensive proposition.
The Heroes Earnings Assistance and Relief Tax Act of 2008 provides tax relief to members of the miltary and their families. To offset the lost revenues from these tax breaks, the act includes an exit tax on citizens and long term residents of the United States, who seek to terminate their citizenship and residency status.
The Exit Tax happened quickly (http://www.govtrack.us/congress/bill.xpd?bill=h109-5037#votes). It was introduced on May 16, 2008. It passed with only 3 dissenting votes in the House on May 20th. It passed in the Senate unanimously on May 22nd. All this in only 6 days. (The three dissenting votes in the house were David Wu, Barney Frank and Ron Paul.) The bill becomes law when President Bush signs it, or after 30 days from its passage, whichever comes first.
If your current or near future net worth is less than $2 million U.S. dollars (married couples $4 million), for the moment you need not concern yourself with this new potential tax liability. Like all taxes however, expect the net to get wider. For example, consider what your net worth will be valued at in US dollars if the dollar drops to half its current value.
Europe's Economist magazine refers to this new tax as, "America's Berlin Wall (http://www.economist.com/finance/displaystory.cfm?story_id=11554721)." They also point out that, along with North Korea, the United States is already one of the few countries in the world that taxes its citizens on their income regardless of the country they earn it in. As most already suspected, the IRS is a hard master.
A government that is bankrupt by any honest accounting accounting standards will eventually be forced by its creditors to turn over any real assets it still has at its disposal. Unfortunately, in most courts of law, those assets can include the full net worth of all U.S. citizens and residents. The ability to tax this net worth, to extinction if necessary, is the ultimate backing behind the guarantee U.S. debt holders know as"the full faith and credit of the United States."
The message to take away from this is, if you are not going to fight for your rights and freedoms, your time to flee is rapidly running out. Maybe it's time to think again about joining The John Birch Society (http://www.jbs.org/www.jbs.org/apply).
Other monetary laws of note:
Even if you're not worth $2 million dollars, if you had more than the equivalent of $10,000 in a foreign bank account don't forget that you only have until June 30th (http://taxes.about.com/od/preparingyourtaxes/a/TDF90221.htm) to report this to the IRS. The penalty for unwillful failure to report is a fine of up to $10,000. The penalty for willful failure to report is a fine of up to $100,000.
Though yet to be enforced, or challenged in the Supreme Court, there is already a federal law (http://www.davidtanzer.com/articles.asp?ID=41) prohibiting the right to visit family or friends in the U.S., for persons the government decides have renounced citizenship for tax purposes (8 USC 1182(a)(10)(E)).
Don't try to get out of the country with more than $5 worth of pennies or nickels - that's a crime (http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm) now too.
With the exit tax and rules like these already in place, can currency controls be far behind?
SOURCE:
http://www.jbs.org/node/8431
John Birch Society (http://www.jbs.org/)
June 18, 2008
ARTICLE SYNOPSIS:
The flight option in the "fight or flight" decision has become more expensive. An "exit tax" has been passed to deter those seeking to give up their U.S. citizenship and residency.
Follow this link to the original source: "Exit Tax for U.S. Expatriates to Become Law (http://www.withersworldwide.com/news-publications/324/exit-tax-u-s-expatriates-to-become-law.aspx)"
COMMENTARY:
Some Americans of means have defered from taking part in the ongoing fight for freedom. Their rationalization for inaction often goes like this: "Well, if it really get's bad in our country, I'll just leave."
We are all fortunate that their logic still works. However, the U.S. Congress has finally carried through on its threat to make the option of giving up on the United States a much more expensive proposition.
The Heroes Earnings Assistance and Relief Tax Act of 2008 provides tax relief to members of the miltary and their families. To offset the lost revenues from these tax breaks, the act includes an exit tax on citizens and long term residents of the United States, who seek to terminate their citizenship and residency status.
The Exit Tax happened quickly (http://www.govtrack.us/congress/bill.xpd?bill=h109-5037#votes). It was introduced on May 16, 2008. It passed with only 3 dissenting votes in the House on May 20th. It passed in the Senate unanimously on May 22nd. All this in only 6 days. (The three dissenting votes in the house were David Wu, Barney Frank and Ron Paul.) The bill becomes law when President Bush signs it, or after 30 days from its passage, whichever comes first.
If your current or near future net worth is less than $2 million U.S. dollars (married couples $4 million), for the moment you need not concern yourself with this new potential tax liability. Like all taxes however, expect the net to get wider. For example, consider what your net worth will be valued at in US dollars if the dollar drops to half its current value.
Europe's Economist magazine refers to this new tax as, "America's Berlin Wall (http://www.economist.com/finance/displaystory.cfm?story_id=11554721)." They also point out that, along with North Korea, the United States is already one of the few countries in the world that taxes its citizens on their income regardless of the country they earn it in. As most already suspected, the IRS is a hard master.
A government that is bankrupt by any honest accounting accounting standards will eventually be forced by its creditors to turn over any real assets it still has at its disposal. Unfortunately, in most courts of law, those assets can include the full net worth of all U.S. citizens and residents. The ability to tax this net worth, to extinction if necessary, is the ultimate backing behind the guarantee U.S. debt holders know as"the full faith and credit of the United States."
The message to take away from this is, if you are not going to fight for your rights and freedoms, your time to flee is rapidly running out. Maybe it's time to think again about joining The John Birch Society (http://www.jbs.org/www.jbs.org/apply).
Other monetary laws of note:
Even if you're not worth $2 million dollars, if you had more than the equivalent of $10,000 in a foreign bank account don't forget that you only have until June 30th (http://taxes.about.com/od/preparingyourtaxes/a/TDF90221.htm) to report this to the IRS. The penalty for unwillful failure to report is a fine of up to $10,000. The penalty for willful failure to report is a fine of up to $100,000.
Though yet to be enforced, or challenged in the Supreme Court, there is already a federal law (http://www.davidtanzer.com/articles.asp?ID=41) prohibiting the right to visit family or friends in the U.S., for persons the government decides have renounced citizenship for tax purposes (8 USC 1182(a)(10)(E)).
Don't try to get out of the country with more than $5 worth of pennies or nickels - that's a crime (http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm) now too.
With the exit tax and rules like these already in place, can currency controls be far behind?
SOURCE:
http://www.jbs.org/node/8431