July 1st 2014: A new currency law FATCA going after Americans with foreign assets to "pay their fair share"

Are “Currency Controls” Coming To America On July 1?

IN THIS ISSUE:

1. “The Foreign Account Tax Compliance Act” (FATCA)

2. Automatic 30% Withholding Tax Starting January 1, 2015

3. FATCA is About Much More Than Tax Cheats

4. Why FATCA Could be Bearish for the US Dollar

5. IRS Delays FATCA Enforcement, Not Really

6. Conclusions – Just Another Washington “Money Grab”

Overview

Some very controversial regulations passed way back in 2010 and finalized in 2012 are scheduled to go into effect on July 1 of this year, and most Americans know little or nothing about this new law. Yet the effect of these new regulations could send shockwaves through the financial system worldwide. Basically, the regulations that take effect July 1 will make it very difficult and costly for Americans to hold money or investments outside the US.

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Starting in July, foreign banks and financial institutions will be required to report to the IRS any accounts they hold which are owned by Americans – including the owner’s name, address, Tax ID number (or Social Security number) and account balances of all offshore accounts if the combined amount is over $50,000. Many foreign institutions are up in arms about this, and some are kicking their US clients out to avoid reporting this information to the IRS. Most US investors who have money in offshore banks, funds, etc. will very likely close such accounts and bring their money home when they learn about this.

The Democrats who passed this law (back in 2010 when they controlled Congress) say these new regulations were designed simply to identify “tax cheats” who do not pay the IRS taxes on their gains earned outside the US. But the unintended consequence may be a major disruption in the global financial system that could cause the US dollar to plunge. Some even believe it could threaten the US dollar’s status as the world’s “Reserve Currency.”

Some analysts are calling the new law “currency controls,” which have never happened before in the US. As a result, ALL US investors need to know about this ASAP, not just those who have money or investments in offshore accounts, due to the potential for global repercussions. It’s complicated, and no one knows exactly what the outcome will be, but I will do my best to explain it today.

www.valuewalk.com/2014/05/currency-controls-america-july-1/

Is America About To Stumble Into A Credit Default?

“In less than three months the Department of the Treasury will start trimming payments on portions
of the $17.3 trillion-plus national debt, with unpredictable– and unstudied – consequences.
Acting in violation of legal commitments to purchasers, the Department will chop 30% from interest
payments due some foreign holders of hundreds of billions, perhaps trillions, of dollars’ worth of Treasury securities.
Possible results of this consciously inflicted partial federal default could include mass dumping of bonds by jittery holders,
a rise in the rate the government pays for debt service, and undermining the dollar’s status as the world’s reserve currency.
The impact on the U.S. and global economy is, literally, incalculable.”

www.forbes.com/sites/realspin/2014/04/14/is-america-about-to-stumble-into-a-credit-default/

Beginning july 1st, 2014, Government to seize U.S. pension funds, by Mr. Ron Paul (bill HR 2847)
“Obama’s new July 1st 2014 law will shock most Americans
We believe this could precipitate a huge collapse in the U.S. dollar… and a rapid decrease in our standard of living.
Of course, we’re not the only ones who believe this new U.S. law is going to be a disaster for our country and American citizens.”
Government to seize U.S. citizens pension funds…
investmentwatchblog.com/h-r-2847-july-1-2014-the-u-s-dollar-will-officially-collapse/#yeYuDDLJOFuRuvXk.99
U.S. IRS chief says no delay in tax-dodger law; some have doubts

www.reuters.com/article/2014/01/31/us-usa-tax-fatca-idUSBREA0U1XK20140131

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4 thoughts on “July 1st 2014: A new currency law FATCA going after Americans with foreign assets to "pay their fair share"”

  1. And here it is Jan, 2015 and the US dollar has been on a huge bull run
    for the last 6 months… the article couldn’t have got it more wrong, except the part where they said no-one knows what will happen.

    Reply
  2. The cry babies of unearned income and estate taxes would have you believe that these huge estates of the wealthy are being taxed twice. Not true. Much of this income is typically a gain in value on securities that were never cashed in or redeemed at a higher value than aquired. New stock offerings are typical. The parent buys in on a new technology which takes years to start earning profits. The stock value goes up but no tax is paid because it has no gain until sold at a higher value. The higher value is passed on the the next generation with out ever being taxed. Then if estate tax exists and does apply it gets taxed just once. That generation can keep gaining value until it is sold again at a higher price; then it would be taxed but, just on the gain. No double dipping just financial double speak, by the crybaby un earned income babies. They should pay the same rates on gains as we do on wages, instead of a fraction of it. They don’t even work for it.

    Reply

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