Economy full collapse on July 1, 2014!
This is what is being said about the full implementation of House Bill HR 2847. Well what is it I just had to ask.
According the American Citizens Abroad HR 2847 is a bill signed into law by Barack Obama in 2010 that will trigger massive exodus of wealth from American financial institutions.
On it’s online blog the ACA writes in part:
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.
American Citizens Abroad (ACA) is working hard to educate the legislature and decision makers to inform them of the many dangers of FATCA. Recently legislators and the media have come out in strong opposition to FATCA, some advocate for repeal, others for revisions of the regulations. All are unanimous that FATCA as currently drafted is bad for America and Americans.
What is FATCA?
FATCA was initially introduced to target those who evade paying U.S. taxes by hiding assets in undisclosed foreign bank accounts. With such a noble goal, and with the strong backing of the Administration, Congress quickly drafted the FATCA legislation and quietly slipped it into the HIRE (Hiring Incentives to Restore Employment) bill signed into law by President Obama in March 2010. Most members of Congress are unaware of the unintended negative consequences this legislation will have when fully implemented in 2014.
Key provisions of FATCA
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.
However what many foreign banks and investors have decided is to simply divest. Simply put trillions of dollars will simply leave the country as foreigners find it easier that trying to appease the US IRS.
There really is trouble on the horizon. Hey you’ve been warned.