FATCA freight train- It’s taken two years but it seems its whistle is finally being heard.

Has anyone else noticed the uptick on the number of articles relating to FATCA from those in the finance industry? In his weekly bulletin “Mountain Vision”, Frank R Suess, with help from Bernarda Pesantez, does a great job explaining to his “mountaineers” the painful truth about FATCA. Don’t miss the news briefs at the end.

http://www.mountainvision.com/newsletter.php?view=a8baa56554

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19 thoughts on “FATCA freight train- It’s taken two years but it seems its whistle is finally being heard.

  1. Nice article. They didn’t mention that if you only hold a US Passport, banks will tell you to take a hike very quickly.

  2. Typical harebrained legislation. This will drive more people to secret offshore jurisdiction than before.

  3. Like I just posted on the Global Tax thread, another author is recognizing that FATCA begat DATCA begat GATCA

    http://isaacbrocksociety.com/2012/03/27/a-global-fatca-in-the-future/#comment-11664

    http://www.efinancialnews.com/story/2012-04-02/fatca-is-about-to-go-global

    There are some smart people living in America, and many of them work in the country’s Treasury department. The rest of the world is only just beginning to realise how clever they have been to issue legislation that is going, in all probability, to set the template for a worldwide tax system that most of us will not like.

  4. @justme – taxes are just part of life. What I’m scared of at least is that both countries really try to rake me over the coals when I’m already paying through the nose. Before the FATCA, we just had to listen that we we’re criminals. Now the game has morphed completely into a situation where we may/may not be able to obtain financial services AND we are called criminals still.

    This is a little speculative, but I have ZERO trust in the US Government, so I got to thinking last night. This article mentions capital controls. I agree with them. What’s scary is that the US is somewhat going back on Bretton Woods. What’s going to happen AFTER there are strong capital controls on the dollar? Could we see the emergence of a “domestic” US Dollar and an “international” US dollar for commodities pricing?

    Whatever the outcome – speculative, or the regularly-quoted status quo, I’m still scared this “control” is going to be used to ravage the dollar even more and cause a decrease in the standard of living of even more people….

  5. @geez, what also concerns me is the anti-Americanism that FATCA will generate in the citizens of the countries we live in outside the US. If resident Americans, who SHOULD be aware of the oppressive nature of their own tax laws, default to assuming we are somehow trying to evade paying our share, how will those in the countries we live in begin to view us? Will we become to even the average Jose, or Yoseph, those toxic Americans out to destroy their own way of life? It terrifies me that we may have to begin to fight on both fronts against our persecution as status as 2nd class citizens of both countries. Another trend that may work against us is the deterioration of the US itself. Will it cause many resident Americans to view us as actually being LUCKY for not living there (health care a real hot button)? Think about how that will work against us in trying to garner any kind of compassion in the US!

  6. Instead of trying to garner sympathy from Americans I think we should do everything we can to piss them off. Then some Congressman will say hey I have a brilliant idea let’s put through a bill that strips them of their US citizenship. That’s exactly what we want. It’s the shorter route to a just resolution.

  7. @omg

    ‘then some Congressman will say hey I have a brilliant idea let’s put through a bill that strips them of their US citizenship. That’s exactly what we want’.
    I believed I was ‘stripped of my US citizenship’ 40 years ago. It is their tax department that says I have not.
    We also need to remember there are posters on this site, that for a variety of reasons, do not actually want to be ‘stripped of their US citizenship’.

  8. Here, here @tiger. As the sign says “Liberty and Justice for US Persons Living Abroad”, not “Liberty and Justice through renouncing US personhood”!

  9. The Treasury is completely inept. If I worked for them, FATCA would already be implemented and innocent people would not get clobbered while the criminals roam free. I would remove citizenship based taxation from FATCA and sell it to the world as a win win since the benefits would be received equally by all.

    Mark my words, it’s just a matter of time before a Congressman introduces the strip them of their citizenship bill.

  10. @omg

    Pray, God, you are right. There sure are alot of us ‘north of the border’, who would have a party in the streets. Then when/if the party got written up by US media outlets, no one would understand why we were all so happy to have our citizenship stripped.

  11. I bet you there are already members of Congress complaining about the fact that there are all these average Joe Americans overseas who are complicating their ability to implement FATCA.

    If only rich Americans lived overseas they might not have such a hard time getting FATCA implemented.

  12. @omg and tiger, the $450 they get per renunciation is the most revenue they get from us, why would they give that up? But then it’s likely it’s a case of right hand not knowing what the left hand is doing, or in their case, the right hand not knowing what the RIGHT hand is doing.

  13. @Tiger. Mrs. Arrow re thought on previous post
    You wrote that you won’t be able to travel to the U.S. after receiving a CLN. Wondering why you won’t be able to?

  14. She’s probably thinking they could start enforcing Reed Act which is a remote but still real possibility in the future, especially if they freak out over all the renunciations occuring due to Fatca.

  15. Just been googling around looking for FATCA stories…

    I hate to say it, but looking at Google Trends for 2012, it would not appear that FATCA is getting much more play in either searches or News stories….

    http://www.google.com/trends/?q=FATCA&ctab=0&geo=all&date=mtd&sort=0

    Check around and see anything of interest that would encourage you to think the Freight Train whistle is actually being heard.. There was a bit of a spike in February, but other than that, not so much…

  16. @justme
    I knew there would be some way to actually verify that, but not being at all tech savvy I had no way of knowing. I’ve definitely heard more talk about it from people I know personally in the financial industry, but those aren’t news articles. I have changed my search parameter slightly to the current date and FATCA, so that could account for an increase for me. Thanks for the analysis (regardless, I still think there’s an increase- I’ll work on that 🙂 )
    What really concerns me is the continued deafening silence from the Canadian government. I’m always looking for signs from them. The news about RBC being sued by US regulators may be an indication that the US is meeting resistance north of the border, I think.

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