NYJetsFan.com Forums: Here's The Law That's Driving Record Numbers Of Americans To Renounce Their Citizenship - NYJetsFan.com Forums

Jump to content

Toggle shoutbox NYJETSFAN BANTER

HarlemHxC814 Icon : (25 July 2014 - 03:28 PM) Yeah I know but it hasn't been this dead
Mr_Jet Icon : (26 July 2014 - 02:02 PM) When the team was winning and going to AFC Championship games the site had a lot of activity. But now after a couple of mediocre seasons, people don't want to talk.
Mr_Jet Icon : (26 July 2014 - 02:04 PM) When the team starts winning again people who have been MIA will be back saying that they never left.
518-JeTS-FaN Icon : (27 July 2014 - 07:07 AM) wats good everyone!. been awhile since i last posted anything but i always come on here to read and see whats new
ganggreen2003 Icon : (27 July 2014 - 06:33 PM) SUP BITCHES!!!!
HarlemHxC814 Icon : (27 July 2014 - 07:33 PM) Oh it's you
RetireChrebet Icon : (27 July 2014 - 08:49 PM) Harlem, great way to encourage user activity!
HarlemHxC814 Icon : (27 July 2014 - 10:23 PM) I aim to please
Jetsfan0099 Icon : (28 July 2014 - 04:37 PM) lol
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Still being a dick huh Harlem?
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Shit hasn't changed much since the 2013 JETS season
santana Icon : (28 July 2014 - 06:26 PM) yep everyone is still dicks
MikeGangGree... Icon : (28 July 2014 - 06:50 PM) .[43] Moments later, during a live post-game interview with Fox Sports' Erin Andrews, Sherman emotionally shouted, "Well, I'm the best corner in the game! When you try me with a sorry receiver like Crabtree, that's the result you gonna get
MikeGangGree... Icon : (28 July 2014 - 06:51 PM) Im the best poster on the site!! When you try me with a sorry poster like Santana, thats the result your gonna get.
MikeGangGree... Icon : (28 July 2014 - 06:52 PM) WOOOOOOOOOOO
santana Icon : (28 July 2014 - 07:48 PM) you are the best cb on the site cb of course meaning cheap bastard
santana Icon : (28 July 2014 - 07:49 PM) WOO
Chaos Icon : (29 July 2014 - 11:16 AM) any news on Amaro? havent seen anything on twitter.
ganggreen2003 Icon : (29 July 2014 - 03:56 PM) only 39 days 20 hours and 3 min to go till the JETS kick off the season on Sept 7th at 1pm against the Oakland Raiders
HarlemHxC814 Icon : (29 July 2014 - 03:59 PM) Amaro practiced today in full pads
ganggreen2003 Icon : (29 July 2014 - 08:21 PM) 42 Days 39 min till Sons Of Anarchy FINAL SEASON starts
Jetsfan0099 Icon : (29 July 2014 - 08:42 PM) Amaro has a lingering sore tendon
Jetsfan0099 Icon : (29 July 2014 - 08:43 PM) I've read that hes been up and down so far
Jetsfan0099 Icon : (29 July 2014 - 08:44 PM) Dexter McDougle has been looking really good
Jetsfan0099 Icon : (29 July 2014 - 08:44 PM) Oday Aboushi might end up starting on the OL, hes been doing good at LG
Jetsfan0099 Icon : (29 July 2014 - 08:46 PM) FIRE IDZIK
MikeGangGree... Icon : (29 July 2014 - 11:41 PM) VICK=$$$$$$
santana Icon : (30 July 2014 - 09:24 AM) Everyone knows that Vick = $$
HarlemHxC814 Icon : (30 July 2014 - 12:03 PM) I do it all
HarlemHxC814 Icon : (30 July 2014 - 12:03 PM) North to south east to the west
JSOTF Icon : (Yesterday, 03:50 AM) Greetings from Germany!
Chaos Icon : (Yesterday, 03:40 PM) now that was a busy MLB trade day
Chaos Icon : (Yesterday, 03:40 PM) some WS level moves too
Chaos Icon : (Yesterday, 03:41 PM) Price to DET, Lester to OAK
HarlemHxC814 Icon : (Yesterday, 07:10 PM) Dubbs is going to be watching a lot of Fox Sports this season
HarlemHxC814 Icon : (Yesterday, 07:11 PM) Brady Quinn going to be a college/NFL analyst
santana Icon : (Yesterday, 07:19 PM) haha
santana Icon : (Yesterday, 07:20 PM) I didnt realize quinn was already out of the nfl
santana Icon : (Yesterday, 08:22 PM) Scooped up that new dortmund jersey
santana Icon : (Yesterday, 08:25 PM) http://i.imgur.com/NkpSryy.jpg
santana Icon : (Yesterday, 08:25 PM) Dope.
Mr_Jet Icon : (Yesterday, 11:23 PM) Brady Quinn has always looked like a plastic TV talking head jock anyway.
HarlemHxC814 Icon : (Today, 11:05 AM) MIZZOU
MikeGangGree... Icon : (Today, 11:25 AM) HAHAHAHA the Cowboys sent playoff ticket and NFC title game tickets to all season ticket holders!
MikeGangGree... Icon : (Today, 11:25 AM) :hysterical:
Resize Shouts Area

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

Here's The Law That's Driving Record Numbers Of Americans To Renounce Their Citizenship

#1 User is offline   azjetfan Icon

  • D Coordinator
  • Icon
  • Group: Members
  • Posts: 2,886
  • Joined: 30-March 05
  • Gender:Male
  • Location:Cheese Land Baby
  • Interests:Football, golf, banking and home improvements

  • NFL Team:

Posted 14 August 2013 - 01:22 PM

By Josh Barro | Business Insider – Mon, Aug 12, 2013 3:32 PM EDT..

Quote

.
A record number of Americans are giving up their U.S. citizenship. The Wall Street Journal reports that 1,130 Americans renounced their citizenship in the second quarter of 2013, more than did so in all of 2012.

To my surprise, the list of new ex-Americans is publicly available; I didn't recognize any of the names on a quick scan.

According to the Journal, the surge in expatriations seems to be driven by the upcoming implementation of the Foreign Account Tax Compliance Act (FATCA), a 2010 law that forces foreign financial institutions to disclose more information to the IRS about Americans' accounts and investments. Starting in 2014, foreign financial institutions will have to tell the IRS about income accruing to American clients (or businesses owned by Americans), and they'll have to withhold American income tax as appropriate.

In other words, it's going to become a lot harder to hide your income with a Swiss bank account.

The IRS can't directly tell foreign banks what data to turn over. But it has a pretty big stick — it can impose a 30% withholding tax on payments from the U.S. to foreign financial institutions unless they cooperate. As a result, many foreign banks and foreign countries have been entering into agreements with the IRS to comply with FATCA.

If you're an American living in the U.S. and your strategy for hiding income abroad isn't working anymore, you may have few options but to pay up. But if you live abroad, you have another choice available: Renounce your U.S. citizenship so you're not liable for American income tax.

That's one driver of the surge in renunciations. Another likely factor is the increase in capital gains and income tax rates in 2013, meaning that wealthy American expatriates can get a bigger tax saving by renouncing citizenship than they used to.

But a third factor is that FATCA creates compliance headaches apart from the actual tax bills it leads to. As the WSJ describes:

Some U.S. citizens say they are exasperated by a growing raft of paperwork that forces U.S. citizens living abroad to declare the minutiae of their financial holdings and other assets. That has increased the attraction of becoming a citizen in places such as Hong Kong, where the individual tax rate is capped at 15%.

"My decision was less about the actual amount of taxes I had to pay, and more about the system," said one investment banker, who renounced his U.S. citizenship and is now a Hong Kong citizen. "I'm not an ultrawealthy dude. It was the hassle with all the paperwork."

A few months ago, I attended a dinner where I sat between two Americans living abroad who complained that FATCA has made foreign banks less willing to provide American expatriates with checking accounts, credit cards and mortgages. This has been a major point of complaint for organizations representing American expatriates.

FATCA also complicates matters for foreign businesses with American investors (and for Americans who want to invest in foreign businesses) since American ownership makes a business subject to FATCA reporting.

If you intend to move back to the U.S., you're probably not going to renounce your citizenship because it was hard to get a checking account, or even because you had to forego an investment opportunity. But if you're a dual citizen with weak ties to the U.S. and the law is materially interfering with your financial dealings, it might be a reason to go ahead and quit being an American.

Marie Sapirie, the legal editor at Tax Notes, even says the IRS proposed renouncing citizenship as an option for an American with a complicated tax situation who had long resided abroad.

Last fall, I attended an American Swiss Foundation trip to Switzerland and FATCA was the number one hobby horse for the Swiss participants. The difficulty in evaluating the Swiss complaints is that the Swiss have a combination of good and bad reasons for hating FATCA. The law creates compliance burdens for Americans living in Switzerland and Swiss who do legitimate business with Americans. But it also undermines tax evasion strategies that are the key reason that some Americans were interested in banking in Switzerland in the first place.

Of course, every law has compliance costs, and it's not even clear that it's such a big problem if more Americans, presumably dual citizens living abroad with relatively weak ties to the U.S., are renouncing citizenship. But the benefits of FATCA may also be relatively modest: It's expected to raise $7.6 billion in added taxes over 10 years.

In 1999, the State Department estimated that there are between three and six million Americans living abroad; if those numbers are similar today, that means FATCA will generate about $170 in extra annual taxes per expatriate.

The revenue estimate for FATCA may prove incorrect in either direction; it's based on a guess about how much unreported foreign income will be discovered when the new reporting and withholding requirements come into effect. As the law is implemented next year, we'll start to see how much revenue actually rolls in — and whether the law is worth the compliance costs and expatriations that it causes.

Posted Image
0

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

1 User(s) are reading this topic
0 members, 1 guests, 0 anonymous users