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The U.S. dollar will officially collapse on 1 July 2014 due to the implementation of H.R. 2847.
Snopes.com ^ | Snopes

Posted on 04/27/2014 11:09:45 AM PDT by tired&retired

Write Down This Date: July 1st, 2014

On this date, U.S. House of Representatives Bill "H.R. 2847" goes into effect. It will usher in the true collapse of the U.S. dollar, and will make millions of Americans poorer, overnight. You now have just several months to prepare ...

Snopes Opinion: Mixture of Truth & NonTruth

Origins: This item about the passage of H.R. 2847 causing the U.S. dollar to collapse as of 1 July 2014 is another example financial scarelore put out in conjunction with an investment come-on, in this case an ominous sales pitch put out by the folks at Stansberry & Associates Investment Research LLC.

This latest panic piece is offered in a more at Stansberry & Associates presentation featuring a number of scary-sounding statements about how we in the U.S. are soon to experience a "near-complete shutdown of the American economy," will see "the savings of millions wiped out," will be living under the imposition of martial law by the federal government, and will be struggling in the aftermath of a number of other apocalyptic financial scenarios.

So what is this all really about?

H.R. 2847, also known as the Hiring Incentives to Restore Employment Act (or HIRE), was a Congressional bill passed into law in March 2010 that sought to provide payroll tax breaks and incentives for businesses to hire unemployed workers. A section of that bill, the Foreign Account Tax Compliance Act (known as FATCA), sought to eliminate the non-compliance of U.S. taxpayers who hold foreign accounts by requiring those taxpayers (including those living outside the U.S.) to report certain foreign accounts and offshore assets to the government, and by requiring foreign financial institutions to report information about the ownership of overseas assets held by U.S. taxpayers to the government.

(Excerpt) Read more at snopes.com ...


TOPICS: Business/Economy
KEYWORDS: 2847; bankinglockout; collapse; currency; cursestinfoiledagain; expats; fatca; ffis; fiscalabyss; fiscalcliff; goldbugs; hr2847; randsconcerntrolls
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Why FATCA is Bad for America - Update

The Foreign Account Tax Compliance Act (FATCA) is having a negative impact on the U.S. economy, U.S. financial markets, American businesses operating abroad and American citizens who work and reside overseas.

Key provisions of FATCA

http://americansabroad.org/issues/fatca/fatca-bad-america-why-it-should-be-repealed/

FATCA requires foreign financial institutions (FFI) of broad scope - banks, stock brokers, hedge funds, pension funds, insurance companies, trusts - to report directly to the IRS all clients’ accounts owned by U.S. Citizens and U.S. persons (Green Card holders).

Starting July 1, 2014, FATCA will require FFIs to provide annual reports to the Internal Revenue Service (IRS) on the name and address of each U.S. client, as well as the largest account balance in the year and total debits and credits of any account owned by a U.S. person.

If an institution does not comply, the U.S. will impose a 30% withholding tax on all its transactions concerning U.S. securities, including the proceeds of sale of securities.

In addition, FATCA requires any foreign company not listed on a stock exchange or any foreign partnership which has 10% U.S. ownership to report to the IRS the names and tax I.D. number (TIN) of any U.S. owner.

FATCA also requires U.S. citizens and green card holders who have foreign financial assets in excess of $50,000 (higher for those who are bona-fide residents abroad) to complete a new Form 8938 to be filed with the 1040 tax return, starting with fiscal year 2011.

Those affected by FATCA

FATCA will have serious negative ramifications on the entire U.S. economy and more specifically on

• U.S. financial markets and financial institutions

• U.S. businesses operating in global markets

• American citizens residing overseas

• American citizens with legitimate investments overseas

The dangerous ramifications of FATCA

FATCA constitutes a breathtaking extension of U.S. legislative overreach, purporting to impose upon every foreign financial institution, corporation and partnership the obligation to examine whether and to what extent it must adhere to the application of U.S. law. In many cases, entities electing to comply with FACTA will find themselves in violation of local privacy laws. The cost for this massive reporting bureaucracy is estimated in the billions of dollars for foreign and U.S. financial institutions as well as for Americans residing overseas, not to mention for the IRS itself. Much more significant than the cost and time burden, FATCA creates a direct financial and legal threat to all foreign financial institutions.

After much complaint over the direct transfer of information from FFIs to the IRS, the Treasury Department created "Intergovernmental Agreements" or IGA’s. This is a system intended to allow FFIs to release client account information via government to government exchange so that FFIs will not need to violate privacy laws by directly releasing information to the IRS. FFIs must still register with the IRS to abide by FATCA, whether or not the government signs an IGA, to avoid the 30% withholding. An anti-discriminatory clause has also been included in the IGA agreements in order to minimize the possibility of banking lock-out for U.S. citizens and U.S. persons. Nonetheless, U.S. citizens and U.S. persons continue to experience banking lock-out and reduction of services. Many FFIs have simply not referenced FATCA as the reason, citing only "private banking policy." Suddenly, after years of not calling into question banking policy, U.S. citizen clients are having their accounts closed, access limited, or being denied services all together. FATCA is definitely the cause.

1 posted on 04/27/2014 11:09:45 AM PDT by tired&retired
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To: tired&retired

I’m just saying.

Bring American jobs back. GOP support American companies, hiring Americans.

Stop buying everything from China.


2 posted on 04/27/2014 11:12:09 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: tired&retired

FACTA is indeed an over-reach, a horrifically short-sighted bill with no good intentions attached and likely Unconstitutional in the general sense, but this bill isn’t going to cause the collapse of the American dollar anytime soon.

If anything the tax breaks for employers is going to help more than hurt.

This is just a scare tactic to get people to invest in this company’s bonds. We see it all the time on TV with the gold bugs.


3 posted on 04/27/2014 11:13:29 AM PDT by MikefromOhio
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To: CGASMIA68; upchuck; knarf

I searched FR and only found one short vanity thread on this topic from April 5th.

Here is a link to the video that started this story. I am not a catastrophist, but this does make some good points.

http://pro.stansberryresearch.com/1310PSIEANEW/PPSIQ465


4 posted on 04/27/2014 11:14:32 AM PDT by tired&retired
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To: Cringing Negativism Network

And do something about ATM fees.


5 posted on 04/27/2014 11:14:44 AM PDT by 1rudeboy
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To: 1rudeboy

I realize you are being facetious.

However both of our political parties, have completely sold out, to communist China.

Completely. Everyone is for buying imports. Every store in America, is now filled with stuff from China.

Every television commercial you see, is importing stuff from China.

The big problem with this, aside from the fact that America is shrinking is that THE REPUBLICAN BASE is also shrinking.

The sellout is complete.

America needs to return manufacturing to America.

Make jokes if you must, but nobody is doing anything to return manufacturing to America.

So China continues to (rapidly) gain on us.


6 posted on 04/27/2014 11:20:48 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: Cringing Negativism Network
Nearly every time someone tries to explain to you how to "bring manufacturing back," you ignore it. So you are a large part of the problem.
7 posted on 04/27/2014 11:22:32 AM PDT by 1rudeboy
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To: Cringing Negativism Network

And STOP filling companies here in the US with high tech contract workers with Visas. This is completely unfair to American workers who paid thousands of dollars for their degrees and are qualified and work hard yet cannot compete with cheap Indian or African laborers whose country paid for their education.


8 posted on 04/27/2014 11:23:00 AM PDT by applpie
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To: tired&retired

US Department of the Treasury Newsletter

http://www.treasury.gov/connect/blog/Pages/Myth-vs-FATCA.aspx

Myth vs. FATCA: The Truth About Treasury’s Effort To Combat Offshore Tax Evasion

By: Robert Stack 9/20/2013 (Robert Stack is the Deputy Assistant Secretary for International Tax Affairs at the U.S. Department of the Treasury.)

Here are the facts on FATCA:

Myth No. 1: Some claim it’s overly costly and burdensome due to complex regulations and difficult to meet reporting requirements.

FACT: Treasury and the IRS have designed our regulations in a way that minimizes administrative burdens and related costs.

Myth No. 2: Some claim that U.S. citizens living overseas will become outcasts in the international financial world.

FACT: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.

Myth No. 2: Some claim that U.S. citizens living overseas will become outcasts in the international financial world.

FACT: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.

Myth No. 4: Some claim that countries are opposed to FATCA, in part because the legislation could force foreign banks to violate laws in their own countries.

FACT: Treasury’s decision to implement FATCA through IGAs that are respectful of the individual laws and customs of partner jurisdictions has contributed to the significant international interest in participating in FATCA compliance efforts.

Myth No. 5: Some claim that FATCA will generate a backlash from foreign governments who view this as an overreach of U.S. law.

FACT: FATCA has received considerable international support because most foreign governments recognize how effective FATCA, and in particular our intergovernmental approach, will be in detecting and combatting tax evaders.

Myth No. 6: Some claim that FATCA will unfairly expose FFIs to heavy penalties before they have the necessary mechanisms in place to comply.

FACT: We recently announced a six-month extension to our withholding and account due diligence requirements because we recognize that FFIs need sufficient time to register for, understand, and implement their due diligence and reporting processes.

Myth No. 7: Some claim that FATCA aims to use foreign banks as an extension of the IRS.

FACT: Individuals making this claim have confused reporting responsibilities with actual enforcement. The objective of FATCA is the reporting of foreign financial accounts held by U.S. persons or certain entities with U.S. owners.


9 posted on 04/27/2014 11:23:02 AM PDT by tired&retired
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To: 1rudeboy

No I am saying America needs to stop importing everything.

China now exports more than America esports.

In one or two years, they will likely pass us completely.

Stop screwing around America. We need to bring back our own companies, and buy stuff made right here in America once again.

Now.


10 posted on 04/27/2014 11:25:15 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: 1rudeboy
His idea to bring back jobs involves supporting Obamacare.

I think we could create jobs by eliminating big government.

11 posted on 04/27/2014 11:25:35 AM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Cringing Negativism Network

Chanting slogans will not bring back American manufacturing. Nor will raising taxes, or other burdens on business in the name of “fairness,” or forcing them to provide you with healthcare because you are too lazy to get it yourself.


12 posted on 04/27/2014 11:28:28 AM PDT by 1rudeboy
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To: MikefromOhio
FACTA is indeed an over-reach, a horrifically short-sighted bill with no good intentions attached and likely Unconstitutional in the general sense, but this bill isn’t going to cause the collapse of the American dollar anytime soon.

I'm amazed how resilient our economy's been considering all the horrors Obama's thrust upon it. Yes, if he were President long enough he would destroy the country - but he'll be voted out first. Like you, I don't believe this one is the straw that breaks the Camel's back...

13 posted on 04/27/2014 11:28:57 AM PDT by GOPJ (Democrats are waging war on the middle class...)
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To: 1rudeboy

Republicans could change the situation tomorrow, if they wanted to.

Republicans bring back our own nation’s production.

Now.


14 posted on 04/27/2014 11:29:41 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: Toddsterpatriot

Capitalism and free enterprise are good, increasing debt is bad.


15 posted on 04/27/2014 11:31:29 AM PDT by Big Horn (Rebuild the GOP to a conservative party)
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To: All


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16 posted on 04/27/2014 11:32:25 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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bfl


17 posted on 04/27/2014 11:33:30 AM PDT by Faith65 (Jesus Christ is my Lord and Savior!)
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To: tired&retired
CODE RED: Central Banks Will Frantically Pound The Panic Button And Eventually Become Executioners To The World's Currencies
18 posted on 04/27/2014 11:34:09 AM PDT by blam
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To: Cringing Negativism Network

In many cases people don’t even know if what they bought came from China.

You will not see the Obama administration bring back jobs to America. Everything they do forces more business elsewhere.

So, until and unless, the ruling party changes that, you are wasting your breath.


19 posted on 04/27/2014 11:34:52 AM PDT by dforest
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To: tired&retired; All
.FATCA requires [emphasis added] foreign financial institutions (FFI) of broad scope - banks, stock brokers, hedge funds, pension funds, insurance companies, trusts - ...

How can Congress legally require foreign entities to do anything? Treaty?

20 posted on 04/27/2014 11:37:51 AM PDT by Amendment10
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