This Could Destroy the Lives of Millions -- FATCA Law

[nbruno322]

Interesting story...

Dual American-Canadian citizens are finding themselves in a serious bind due to FATCA, which has been dubbed “the worst law that Americans have never heard of.”

http://www.internationalman.com/articles/this-could-destroy-the-lives-of-millions

[angelatc]

She needs to renounce her citizenship.

[nbruno322]

She needs to renounce her citizenship.

I believe that is difficult in her situation. I think they make sure you are tax compliant before they allow you to renounce.

[Bern]

Thanks for sharing. Excellent interview. I've shared it with two friends. Hopefully they will share it with two friends. And so on, and so on and so on...

[nbruno322]

Thanks for sharing. Excellent interview. I've shared it with two friends. Hopefully they will share it with two friends. And so on, and so on and so on...

Yeah its quite disturbing that Americans are the ONLY people in the world effectively subject to a system of citizenship based taxation...

[nbruno322]

She needs to renounce her citizenship.

Also check out this story of a disenfranchised Ron Paul supporter who renounced his citizenship...

http://www.internationalman.com/articles/how-i-renounced-my-us-citizenship-and-why,-part-i

[Bern]

For those interested in sharing/pushing this issue, I offer the following info (which I posted on another forum):

The comments on this article are better than the article itself:

... FATCA was passed because it was slipped into the 2010 HIRE Act at the 11th hour as a way to fund the bill, without any cost/benefit analysis or congressional review. Almost none of the representatives who voted for the HIRE Act had any idea that it contained FATCA. To date, there are many politicians in Washington who have never heard of FATCA.
...
FATCA is in the processing of destroying the lives of 7 million hard-working, lower or middle class Americans trying to live and work overseas. These are people who are the ‘face’ of America overseas and sell or promote US products and services. At the moment, every American overseas that I know is trying to decide whether to give up and go home, or give up their citizenship over this. It’s that bad. When you can’t get a local bank account or a mortgage to buy a home because your local (but ‘foreign’ to the US) financial institution has shoved you out the door over FATCA then you don’t have many choices.

The US needs to come up with a better method than FATCA. FATCA was poorly conceived, never underwent any sort of scrutiny in committee, or had a cost/benefit analysis to see if it was viable. Now it is hurting a community that, quite frankly, the US needs in order to work on a global basis, and making enemies of our friends.

~~~

As an expat living in Europe this FATCA has already started ruining my life. I cannot open a decent bank account. I am going to be thrown out by my bank. cannot get a decent lpension, saving plan motgage etc. We Americans have become the pariahs of the world. No one wants to have anything to do with us. Is this normal? The congressmen don’t careas we do not represent a significant voting block. This is the real taxation without representation. We don’t belong to US or benefit from the US but we have to comply and pay taxes etc.

~~~

my wife & I have lived and worked overseas for decades, and have been working very hard year after year. All along, we have been filing and paying taxes every single year, yet we find ourselves getting rewarded by the US government with a big slap on the face.

I was recently promoted to General Manager, and was offered a 10% partnership with rights to buy another 10% (mid size company).
When the major partner (the company is mostly owned by a foreign financial institution as an investor only… they do not interfere in the management of the company) found about that:

- giving me signatory powers on the company’s bank accounts; and
- giving me ownership of 10% or more in the company

will expose the company to certain IRS requirements and filing…. they pulled the plug on me.

My wife & I are sadly considering renouncing our US citizenship. This is easier said than done; the pain and stress that come from simply having to consider this option are intolerable.

What else can we do? We have kids to provide for, and a lifestyle that we love and will defend. We have come to realize that being successful, honest and law abiding american citizens living abroad are grounds & reasons for us to be punished by our own government.
...
http://www.forbes.com/sites/taxanalysts/2013/12/12/will-fatca-ever-go-into-effect/

FWIW, Rand Paul took the lead on opposition to FATCA - introducing a bill in the Senate last May:

http://www.paul.senate.gov/?p=press_release&id=793

and before that...

http://www.reuters.com/article/2013/04/28/usa-tax-treaties-idUSL2N0DF0CY20130428

A few weeks ago, the RNC passed a resolution (for whatever that's worth) :
The Republican National Committee approved a resolution on Friday that called for the repeal of a law aimed at U.S. tax evaders.

The party adopted a resolution to repeal the Foreign Account Tax Compliance Act, or FATCA, a 2010 law requiring foreign financial institutions to supply the Internal Revenue Service with information on U.S. account holders for tax purposes, or face stiff penalties. The law’s requirements take effect July 1, 2014.

Since its passage, FATCA emerged as a global standard as countries seek information on their own citizens’ offshore money. The law’s slow rollout, however, has led some to call for an extension before it takes effect.

But other critics have blasted it as overreaching in its efforts. In its resolution, the RNC slammed FATCA as “overzealous,” saying the law “forces Americans living abroad to make a horribly unfair choice” between renouncing their citizenship and abandoning overseas business.

“The Republican National Committee…urges the U.S. Congress to repeal FATCA,” the resolution says.

Resolutions “express the sentiment of the committee,” said an RNC spokeswoman in an email.
...

http://blogs.wsj.com/riskandcompliance/2014/01/24/republican-party-backs-fatca-repeal-resolution/

[nbruno322]

Check out a video discussion of this issue.

http://www.youtube.com/watch?list=UUhmeCm2dGivzY09S1_G_LRg&v=xYUP4j8rJ4E&feature=player_detailpage#t=5270

[angelatc]

If they are citizens, and they anticipate drawing Social Security when they retire, then they damned well should be paying into it.

As for the rest of it, I do not care. If they want to work with us on abolishing income taxes, then let them do that. But if they think I'm going to get to work on fixing some injustice that leaves me stuck holding the bag, then they need a Plan B.

[SouthBeachPrimal]

If they are citizens, and they anticipate drawing Social Security when they retire, then they damned well should be paying into it.

As for the rest of it, I do not care. If they want to work with us on abolishing income taxes, then let them do that. But if they think I'm going to get to work on fixing some injustice that leaves me stuck holding the bag, then they need a Plan B.

FATCA has nothing to do with tax rates. It is a simply a regulatory requirement that makes American citizens toxic to foreign banks and makes life miserable for Americans overseas. Repealing it would not change anyone's tax burden. It would just take us back to the time when Americans could live and do business overseas without hassle.

[nbruno322]

FATCA has nothing to do with tax rates. It is a simply a regulatory requirement that makes American citizens toxic to foreign banks and makes life miserable for Americans overseas. Repealing it would not change anyone's tax burden. It would just take us back to the time when Americans could live and do business overseas without hassle.

+1

[eduardo89]

She needs to renounce her citizenship.

I disagree. The law needs to be repealed.