Posted on 10/27/2009 9:17:09 AM PDT by markomalley
Congressional Democrats are set to announce Tuesday legislation aimed at squeezing more information from foreign banks and U.S. citizens with offshore accounts to ferret out tax evaders.
The bill from Senate Finance Chairman Max Baucus (D., Mont.), and House Ways and Means Committee Chairman Charles Rangel (D., N.Y.), includes some of President Barack Obama's proposals to fight offshore tax cheating. According to a summary of the bill obtained by Dow Jones Newswires, it is expected to raise $8.5 billion for the U.S. government over 10 years.
Foreign banks with U.S. customers would face a 30% withholding tax on income from U.S. financial assets, unless they agreed to disclose the identities of their U.S. customers and report to the IRS on annual balance and account activity of those customers.
Individuals with holdings in foreign accounts of more than $50,000 would be required to report information on those accounts annually when they file their tax return. Failure to do so could incur a penalty of up to $50,000.
(Excerpt) Read more at online.wsj.com ...
If the money was made in the US, it will either be reported on a W-2 or a 1099 (of some variety), right? If the money was made outside of the US, it's foreign income and exempt from taxation then, right?
If interest is earned on the money deposited in the foreign account, it is foreign income...and thus not taxed...right?
(Obviously, if it is illicit, under-the-table, earnings, then that would be a separate situation)
So what am I missing?
I’m just glad that Charlie Rangel is involved. I wouldn’t trust such a bill to anyone else.
You should be able to keep your money offshore. We almost went to live in Rome Italy, then Muscat Oman, then Brazil. We could have opened a bank account there and we could have left money there when we returened to USA.
I guess they need another kind of tax evasion bill to catch Geithner, Rangel, etc here IN the USA??????
Well, if anyone knows about tax cheating, it's Charles Rangel!
“...House Ways and Means Committee Chairman Charles Rangel (D., N.Y.), includes some of President Barack Obama’s proposals to fight offshore tax cheating”
Rangel the off-shore tax cheat??? The fox guarding the henhouse once again? What a whacked out group of delinquents we have there in Wash.
“Will somebody smarter on finance than me explain why this is ANY of the government’s business?”
Big Brother can’t have people thinking they can go against its whims. And they need to keep looting in order to keep bribing voters.
“So what am I missing?”
The logic of the looters.
Just more reparations. Evil rich etc.
He’s done his research!
It is always funny when the libs try this. You would think that after all these years these money-grabbers would finally learn that 30% of 0 is always 0.
If this becomes law, it will take foreign banks minutes, possibly seconds, to disinvest themselves from the USA.
Disclose your US customers or the Pay Czar will cut your pay. What!? He has no jurisdiction!?
“Well, if anyone knows about tax cheating, it’s Charles Rangel! “ Takes one to KNOW one???? then HE should know.
Have you read 1984. In the book if you are an “enemy” of Big Brother you vanish in the middle of the night and they wipe out all memory and record of you, it is called being VAPORIZED and now that is what Harry Reid wants to do to Republicans in 2010.
Sounds like they are only going after individuals, and not the Globalist Multi-Nat Corporations....if they only plan to collect 8 billion when they start doing this.
Sounds like more George Soros-Free Trade Globalism....go after individual Americans....let Anti-American Multi-Nats alone.
First they want to control the movement of all fiat money, domestically and overseas, because they plan on a serious erosion of the dollar to pay for all the freebies. Any expected capital gains accruing to an American who owns other currency or securities will need to pay taxes on those gains. The other reason is simply to punish anyone who wants to leave the US, especially investors. The next step will be outlaw the ownership of gold. I believe this is the FDR approach if memory serves me.
How in the world did someone like Max Baucus win in Montana??
First he sets up the Senate version of Obamascare, and now he’s working with the shakedown artist Rangel.
On another thread it was mentioned that in California a man sitting in his idling car in a parking stall at starbucks was given a ticket for using his cell phone while “driving”. Last year in Seattle a man got a parking ticket for leaving the lights on in his parked car. The city denied it was pressing Rita to write as many tickets as possible.
I (and a lot of people) was predicting this a couple years back when I heard about Vallejo, CA going bankrupt. As this economy slides, governments will pull out all the stops to squeeze every “legitimate” dollar out of the people that they can. From Traffic light cameras to cigarettes bought out of state, to strictly enforcing speed laws, to anything else they can think of. It is coming and, at some levels, already here.
People do not fully understand how desperate all levels of government are getting in this country. Right now it is due to what they see on the horizon as they are currently experiencing reductions in tax revenue of 25% or more. But when that “horizon” gets closer and arrives, expect all sorts of desperation.
And they have guns.
What’s interesting is that I would guess that probably 3/4 of the big money people who hide their incomes offshore are Democrats.
I’m sure one of the biggest holders of Swiss numbered accounts is Bill Clinton.
Are they planning to use this information selectively? Just hit the Republican donors and hide the information on their own donors? That certainly wouldn’t surprise me.
Much like closing all the Republican car dealerships, which they did quite openly, and apparently paid no political penalty because the media covered for them.
Will somebody smarter on finance than me explain why this is ANY of the government’s business?
“Will somebody smarter on finance than me explain why this is ANY of the government’s business? “
The answer is simple to our Marxist Government Leadership.
Wiki: “According to Marxism, capitalism is a system based on the exploitation of the proletariat by the bourgeoisie”
It’s the Marxist way to crush the bourgeoisie class and create a proletariat utopia.
Charlie used a little “offshore” hide-the-greenbacks deal to not declare his DR rental income and claimed a language barrier as the excuse (no habla espanol)
what a hyprocrite
My suggestions - look at Bank of China in Hong Kong or French Banks, such as Credit Lyonnais.
Why? They are state-owned flagship banks, so those socialists won’t let their flagships fail. Also, Hong Kong is very modern, and private world banking center.
Finally, if the IRS or Treasury tries to strong-arm these guys, it’s the Chinese and the French who are most likely tell the US Gov’t to get stuffed.
I suppose it only matters if you are truly wealthy. I don’t have that luxury myself, but know of several wealthy people who have done so.
This is the beginning of confiscation. You can’t let money leak offshore.
Our tax system was designed to get the most from the most without creating poverty.
Well, the Government back is against the wall and they are getting desperate.
Rumor has it that Montana is circulating petitions to recall/impeach Baucus.
Overdue.
This bunch in Washington hates the thought that anyone might have worked hard and saved money. They want everyone (except themselves) to be equally poor and miserable.
Right, they write the bills, know the loopholes, so they can cheat the sytem for decades before anyone figures it out. Typical Barney Frank move.
They want ?their? money, because you all know they fully believe are our masters.
I’d take this crap seriously if the Obama Administration figures were honest enough to pay their taxes in the FIRST place.
He shouldn't be on this panel. He shouldn't even still be in office. He should be behind bars for criminal offense and Nancy Pelosi should resign for not bringing us the "most ethical Congress in History" as she promised.
No, wrong. We pay taxes to Uncle Sam and our states based on "worldwide income." That means if I earn interest on bank deposits in Switzerland, I must include that interest on my US income tax return. Same is true if I sell property in Canada . . I am required to report the gain or loss on my income tax returns. Worldwide income. There are some exceptions (US citizen employed overseas), but none that I know of for bank interest.
My guess? More people with big money knows we are so over and are getting out and it scares the $&!+ out of them, because the Dem's know we are broke and they are to big a bunch of cowards to tell us the truth, and they need these deep pockets to keep their Ponzi schemes going...
They are hell bent on taking everybody’s money but their own and they’re campaign donors.
Easy fix - foreign banks dump their US customers. The intent here is to further dry up the availability of investment capital.
Think about it. The Fed hands out $700 billion to our largest banks and investment firms, and then those firms subsequently cut off all credit lines to small investment firms. The Fed has managed to drive out of business all future competition for the large firms while at the same time has gained control of those same large firms. We as a nation may never recover from this. And our legislature is giving it their seal of approval.
I think things are going to get very ugly sooner rather than later now. Next year, probably.
We’d best be ready!
CA....
so simple: the moslems in USA reportedly, it appears, have their own banking sytem whereby they use 2 different accounts in 2 different coutries and deposit/withdraw funds through a middleman who instructs both parties on mirrored transactions- This way they do virtual transfer of funds out of USA and international business transactions- no govt scrutiny on taxes even though they are making money here=the USA moslem guy reportedly, it appears, gives funds to the middleman who has USA bank account. The middleman instructs the foreign account holder to deposit matching funds overseas or keep in account overseas. The foreign bank cannot be investigated by IRS/FBI because it is not USA account holder and no funds are leaving the USA or foreign country. The middleman in USA also holds funds for the foreign accountholder in the middleman`s USA bank. The 2 accounts mirror each other. The foreign bank account holder also deposits earned money in his foreign account to be picked up by US citizen from middleman`s account as he needs it when he returns to USA. Each bank account can be used as collateral, or loans or credit or money-making deals in other countries through the middleman, kind of a do-it-yourself funding escrow service - this was reported by 60 Minutes, it appears, maybe dunno. Is it legal?
Dunno.
Sounds like kiting, tho.
But who’s gonna move on them???
CA....
Rats! City to Pay for Informing on Tax Cheats (Chicago)
[Emanuel on the list?]
NBC5 Chicago | 10-27-09 | Andrew Greiner
Posted on 10/27/2009 8:35:15 AM PDT by STARWISE
http://www.freerepublic.com/focus/news/2371997/posts
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