Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/18/2013 (1 year ago)

Catholic Online (www.catholic.org)

Ridiculous rule sure to alienate many

Want to irritate people to the point where they want to leave the United States and live abroad? Voila! The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

7/18/2013 (1 year ago)

Published in U.S.

Keywords: FATCA, taxes, citizenship, Wall Street Journal


LOS ANGELES, CA (Catholic Online) - Attorney Colleen Graffy makes her displeasure clear in the latest issue of the Wall Street Journal.

"To appreciate [FATCA's] breathtaking scope along with America's unique "citizen-based" tax practices, imagine this: You were born in California, moved to New York for education or work, fell in love, married and had children.

"Even though you have faithfully paid taxes in New York and haven't lived in California for 25 years, suppose California law required that you also file your taxes there because you were born there. Though you may never have held a bank account in California, you must report all of your financial holdings to the State of California. Are you a signatory on your spouse's account?

"Then you must declare his bank accounts too. Your children, now adults, have never been west of the Mississippi but they too must file their taxes in both California and New York and report any bank accounts they or their spouses may have because they are considered Californians by virtue of one parent's birthplace," Graffy writes.

With six million U.S. citizens living around the globe, many are unaware about these requirements. They still face fines, penalties and interest for not complying/ This holds true even if these expats owe no U.S. taxes, own no U.S. property, have no U.S. bank account and haven't lived there in years . if ever.

"A particularly alarming aspect of FATCA is that it seeks to co-opt foreign banks as long-arm enforcement agencies of the Internal Revenue Service-even when it might contravene that country's own privacy or data-protection laws. If financial institutions don't report U.S. citizens holding accounts with them, these institutions face a 30% withholding tax on securities transactions that originate in the U.S." Graffy writes.

Henceforth, it is simply easier and more attractive for Americans abroad to simply renounce their U.S. citizenship. "Given this threat, why allow an American, or even suspected American, to bank with you? The reporting costs, and the consequences of a mistake, are too onerous."

The scenario, Graffy says, now living and working in London, is grim. "Foreign financial institutions trying to avoid these new requirements have two alternatives: to drop American clients, or don't invest in the U.S. Neither scenario benefits America."

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More U.S.

The Pope, the Pets, the Paparazzi and the Propaganda Media

Image of Pope Francis pets a dog

By Deacon Keith A Fournier

The passing on of this complete fabrication, as well as the embellishment which accompanied it, were not simply a matter of the secular press failing to comprehend this Pope. In fact, religious news sources, both Catholic and Protestant, jumped in. This all ... continue reading


A journey to the land of the free: Part One -- Beaten and scared young children flee violence and turn to the United States for hope Watch

Image of Many young immigrants have no more fight in them when they decide to cross the border, they're only trying to survive.

By Abigail James (NEWS CONSORTIUM)

Blistered feet and filthy, blood-stained skin is the forlorn image of immigrants preparing to cross the border. With hopeful hearts and anxious minds, immigrants, of all ages, assemble to make the leap into their promise land. LOS ANGELES, CA (Catholic Online) - Most ... continue reading


Pope Francis, the real architect behind the U.S.-Cuban thaw Watch

Image of With personal appeals, letters, and hosted meetings, the Vatican and Pope Francis can accurately be called the masterminds behind the recent thaw between the U.S. and Cuba.

By Matt Waterson (NEWS CONSORTIUM)

The thaw in relations between the U.S. and Cuba took the world by surprise, but perhaps one man was not as shocked as the rest. LOS ANGELES, CA (Catholic Online) - A senior official with the White House reported that Pope Francis made personal appeals to both President ... continue reading


Looking forward to your tax refund this year? Don't hold your breath. The IRS suffers after extreme budget cuts. Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Heavily stricken with budget cuts and new tax-related laws, the IRS considers implementing its own temporary shutdown. LOS ANGELES, CA (Catholic Online) - Congress has recently cut the IRS budget by $346 million. The IRS' budget has been cut a total of $1 billion since ... continue reading


OBAMACARE DOES NOT WORK! Vermont gives up free healthcare plan as too expensive Watch

Image of Vermont's governor announced that a planned universal healthcare program for the state has been cancelled because the massive tax hikes would devastate the state's economy.

By Matt Waterson (NEWS CONSORTIUM)

Peter Shumlin, the governor of Vermont, announced that he was canceling his longtime dream to create a single-payer health care system for his state. LOS ANGELES, CA (Catholic Online) - The announcement came on December 17, citing problems with paying for the Green ... continue reading


The disgusting new fact of American life: More than 46 million Americans on food stamps for 37 straight month Watch

Image of Obama has been in office for about 70 months, and 37 of those months have seen the most amount of Americans on food stamps, ever!

By Matt Waterson (NEWS CONSORTIUM)

It is self-evident that President Obama continues to undermine the abilities of the lower class, enforcing government-reliance on those who can least afford it. The number of Americans on food stamps under Obama has continued along its record breaking path, as, ... continue reading


Faith in the United States' race relations hits a strikingly low point after no indictment verdicts Watch

Image of 57 percent of American's say race relations in the United States are bad, according to the latest NBC News/ Wall Street Journal poll.

By Abigail James (NEWS CONSORTIUM)

"Injustice anywhere is a threat to justice everywhere." Those are the words of Martin Luther King, Jr, a man who fought long and hard for a better today. LOS ANGELES, CA (Catholic Online) - A land where discrimination no longer prevails is a reality that seems no ... continue reading


Why is he so upset? Because of the secret Republican time bomb in the government funding bill Watch

Image of The federal government has funding through the 2015 fiscal year, but Republicans will have many opportunities to fight the president's programs in that time.

By Matt Waterson (NEWS CONSORTIUM)

The Senate has approved a $1.1 trillion spending bill, aimed to fund nearly the whole of the federal government through the 2015 fiscal year, ending weeks of drama in Congress and relieving doubts that the government might be shut down again while Democrats and ... continue reading


You know about the 'Bishop of Bling' but do American clergy have the same problem too? Watch

Image of The Bishop of Bling was sacked after he spent $43 million renovating his home.

By Catholic Online (NEWS CONSORTIUM)

Pope Francis has called for "a Church which is poor and for the poor." However, not every member of the clergy may have read the memo. A number of high-ranking Church officials in the United States live in lavish homes, sometimes bordering on the scandalous. LOS ... continue reading


Water leak leads to discovery of 1795 time capsule - left by Paul Revere! Watch

Image of A worker holds the time capsule left by the revolutionaries.

By Catholic Online (NEWS CONSORTIUM)

Paul Revere, the fearless revolutionary who mounted his horse to declare that "The British are coming! The British are coming!" has left an enduring national legacy - in both deed and actions. Excitement is mounting with the discovery of a time capsule left by Revere ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Second Samuel 7:1-5, 8-11, 16
1 Once the king had settled into his palace and ... Read More

Psalm, Psalms 89:2-3, 4-5, 27, 29
2 for you have said: love is built to last for ever, ... Read More

Gospel, Luke 1:26-38
26 In the sixth month the angel Gabriel was sent by ... Read More

Reading 2, Romans 16:25-27
25 And now to him who can make you strong in ... Read More

Saint of the Day

Saint of the Day for December 21st, 2014 Image

St. Peter Canisius
December 21: In 1565, the Vatican was looking for a secret agent. It was ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter