The law on tax reform exempts from tax on foreign revenue – but not us

The law on tax reform exempts from tax on foreign revenue – but not us

Corporations – a gift to the citizens Fig

Yesterday at 10:11, views: 326

Supporters trompowsky tax reform bills which took both houses of Congress, trying to refute the thesis that the reform in favor of rich people and corporations, not ordinary Americans.

Actually, it is more correct to speak not about the thesis, and the fact, which is confirmed by calculations by authoritative bodies (such as the congressional Budget office USA) and leading economists. But whatever arguing with the obvious advocates of tax reform, there is one element that, like a drop of water shows someone you care about and who spit Capitol legislators.

One of the key provisions of the reform (against him both houses of Congress agree with each other) is that American multinational corporations should be exempt from paying tax on the profits that derived outside of the United States. That makes sense to me – if you make something in another country, there to take you to the tax, and to fight with one subject of second tax the skin unfair.

But upon closer inspection, not so clear: if the entity is a Corporation, it is unfair, and if the subject is a physical person, a citizen, all right, and a second to tear the skin. In any case, neither the bill of the house of representatives nor the Senate bill does not provide for the abolition of the double tax burden borne by expats – Americans, constantly or temporarily living abroad.

We are not talking about the violated interests of the tax crooks – of which there are few and they usually have such resources and opportunities that the IRS they are not afraid. We are talking about approximately 9 million U.S. citizens who live abroad, pay local taxes, but in addition have each year to issue a U.S. tax return, and then “generous” the IRS may allow them to avoid paying U.S. tax from the first one hundred thousand dollars (and with all that above this, you will have to pay).

These people senators and congressmen did not care – probably because they, unlike multinational corporations don’t donate millions of dollars to their election campaigns. Did not care, despite the enormous number of letters, petitions, and appeals from individuals and organizations such as “American citizens abroad”, “Americans for tax reform”, etc.

Legislators don’t care that the US is in the company of Eritrea (!) the only country in the world that apply the taxation on a territorial basis (where the money is made – there with them, and taxed), and the principle of citizenship. They do not care what a US citizen by birth can be a child born in America, for example, from French parents who, having lived here for several years, returned to France and since then neither they, nor even their “American” child no relation to the America do not have, but the child is owed a tax for the benefit of the American Uncle Sam! It’s not insanity, it is not absurd injustice?

They don’t want to think about the fact that the USA has with many countries bilateral agreements on the avoidance of double taxation, but it is trying to use not that other as that is double taxation.

They have no case and to the rights of citizens to privacy – the notorious privacy; in others, they need points, they pulled it out of his pocket and waving it as a banner of American Freedom. But here, obviously, is not the case: Congress did not want to cancel, within the framework of tax reform, this odious, monstrous thing as “Act of compliance with foreign accounts tax legislation” (Foreign Account Tax Compliance Act, or abbreviated FATCA).

This very “fatco” us Ministry of Finance imposed on dozens of countries, hundreds and thousands of foreign banking institutions that have to report to the US authorities about accounts of us citizens. For example, a young American got a job in China, Germany, Indonesia, Brazil – now a lot of these cases. There he opens a Bank account (without this, no country can not live) and the Bank immediately reported to the American IRS. And the account holder must fill out a separate tax form the IRS on this account if it is a minimum of $50 000.

In a letter to Congress 23 an American organization advocating free enterprise and conservative ideals, indicate that the notorious FATCA reduces the competitiveness of Americans in the international market – many US citizens refuse to work abroad, so as not to deal with the tax bureaucracy of the IRS. Increasingly, it happens and the opposite is true: people give up American citizenship in order to live peacefully abroad. In recent years, the number of refusals from citizenship jumped from 1,000 per year to 5,500 thousand this year (from January 1 through Thanksgiving), and then there will be more.

In April of this year in both houses of Congress had introduced bills to abolish malicious “fotki” – they made a Republican Congressman from North Carolina, mark meadows and Republican Senator from Kentucky Rand Paul. Both bills are not even approved by the relevant committees of both chambers.

On the eve of voting in the Senate (2 December) on tax reform Senator Rand Paul introduced a bill in its complement, concerning the abolition of FATCA. He said that without the lifting of the absurd to vote for the bill will not. But voted. Like other Republican senators who have put forward different requirements (for example, objected to the inclusion in the tax bill provisions to repeal the “individual mandate” Obamacare), and then gave the party bosses to get himself and swept their claims under the rug. The interests of ordinary Americans that you can donate…

Therefore, we will not be surprised that the approval rating of the job Washington lawmakers are in the region of 15 percent. And the fact that thousands of people refuse us passports, although the state Department requires for this procedure as much as $2350 (until recently the fee for the waiver was $450, but then minded officials decided, apparently, to limit the increasing flow of failures of a five-fold price increase).

…Paradoxically, the fact: in terms of FATCA’s repeal on the administration trump is more hope than Congress. In the report to the President on tax regulations hindering the development, the Minister of Finance Steven Mnuchin called, among other things, FATCA. But to abolish their power “fatco” neither the Finance Ministry nor the President can not – it is the law. They can only slightly mitigate the related regulations.

So while we have what we have, dear fellow citizens.

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