U.S Ex-PATRIOT ACT: Breaking Up is Hard to Do!

Just when you thought you ‘dumped’ the ‘Land of the Free’ for good, U.S Senators Schumer and Casey have said ‘not so fast!’.

Fresh from the humiliation of being ‘unfriended’ by Facebook co-founder, the Democrat Senators have proposed the Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy Bill which will seek to reimpose taxes on persons who will be presumed to have renounced their U.S citizenship for tax avoidance purposes.

Failure to rebut this legal presumption will authorise the Inland Revenue Service to prospectively impose a 30% tax on future investment gains irrespective of where the ‘ex-patriot’ resides and will be barred from entering the U.S until their ‘exit –tax’ is paid in full.

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4 thoughts on “U.S Ex-PATRIOT ACT: Breaking Up is Hard to Do!

  1. The problem here is that almost everyone in the U.S. including the congresscritters think that every expat is rich! Look at the articles in newspapers. They always mention Tina Turner, the facebook co founder *who btw paid ALL his taxes as a covered expat to the U.S. in full* but, they totally ignore the majority. American citizens abroad are mostly low and middle income. They are largely outside of the U.S. due to family reasons. Many could not afford to move back to the U.S. if they wanted to without a job waiting for them. Most of them live in high tax countries NOT on a beach sipping champagne. Most pay higher taxes in the countries they live in than they would have inside the U.S.

    Yes, FATCA is going to require us to produce a CLN *certificate of loss of nationality* in order to do every day banking in the cities and towns where we live abroad. We are going to have to prove we are no longer U.S. citizens. This is a forced situation. Some of us share accounts with spouses and children who are not American and who refuse to give over private banking data to a foreign nation *the U.S.* so we have zero choice but, to renounce if we want to have local checking accounts or mortgages in the places we live. These are LOCAL accounts to us and not “off shoring” In some cases the American in the family made zero of the dollars in the account.

    Enter these Senators trying to prevent people already trapped from renouncing. Good god. Is this Eritrea? A country with such abusive tax practices that the U.S. condemned them? It’s looking so far worse than what Eritrea does.

    What are they trying to do here? Build a big wall around the U.S. to keep everyone in? What about long term expats who are law abiding and what this is doing to them? Are these people making laws or attempting to without even knowing who they are making them against?

    Most of us will not be subjected to the “exit tax” as we don’t have enough money to fall into that category. Yet, these types of laws should concern everyone. How much more of a step is it to say any expat will fall into this category. I don’t think something like this will pass as what it will do is bar the rich expat from re entry while allowing others to enter with their foreign status the same as any other citizen of that respective country. Imagine the uproar from other nations? How will they justify it? Are they going to make renouncing illegal?

    Instead of realizing the citizenship based taxation is wrong and is the reason no other country does it except Eritrea, they are attempting to bull full speed ahead with this type of harmful exceptionalism. Shumer in particular has been offended. Terry Gilliam of Monty Python years ago renounced. His reason? He realized that because he was American all he had earned in the U.K. would be subjected to a tax upon his heirs when he died. There’s NOTHING wrong with protecting the assets you want to pass along to your heirs especially when those assets were not even earned inside the U.S. According to everyone in the world except the United States and Eritrea. What’s wrong with this picture? The U.S. demonizes everyone who agrees with residency based taxation and who seeks to escape from it. Unfortunately, this includes the poor and middle class who already have precious little to pass on to their FOREIGN heirs.

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    1. Its like the presumption that US immigration officers are required to work from at the points of entry. They presume that on entry you are not going to leave and the idea of the form and the little chat is that you have to rebut that presumption. So no-one wants to leave and everybody wants to come. Its the reversal of the ‘burden of proof’ which sometimes can be tricky.

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  2. Well, one person in Canada was already turned away from opening a local checking account. She’s been here decades but, wanted to open a new checking account. She complained and the bank said they had “jumped the gun” and let her open it. You can see from this though that people whose mortgages are up for renewal or people simply needing a local checking account have very little choice but, to renounce. I’ve seen people in tears over this mess. All on zero tax owed in most cases. Something is terribly wrong here. Think those who had to get CLN just to be able to renew their mortgage *I know one person who was a veteran of the U.S. military who already had to do this* are going to soon forget what has been done here?

    I don’t usually mind crossing the border and fully understand why border officials need to ask the questions they do. But to force people into a position where they have to renounce and then threaten that if they do they can’t go back ever to visit family in the U.S. What is congress smoking? They are uneducated as to who expats are and believe they are fighting the good fight. However, they have been given a huge responsibility and they are not living up to it. One should not try to pass laws without fully understanding the issue you are advocating from all sides.

    Something tells me that eventually all these stories will come out of the woodwork and FATCA will see a rework but, not before a lot of families are harmed by this mess. Most of the people I know renouncing never would have thought to do that before and did not want to really. One cannot live where one cannot bank and not everyone can go back. Does the U.S. want all these millions of people to land back in the country without a job or support? What else can they do but, renounce?

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