|Canadian bank - back off Obama!|
In a note related to the earlier Wednesday Warren Warning, there's a glaring problem that doesn't seem to be getting noticed. Businesses are leaving America in droves, off-shoring labor and now looking to actual foreign incorporation. Meanwhile illegal immigrants are streaming in with even greater volume and velocity. There's a stunning disconnect in the minds of much of American leadership - more people coming in, more jobs going out. This will not end well. In fact it will be disastrous.
In the minds of Democrats, this attempt to legislate business behavior is the logical follow up to nefarious FATCA. It's aim is to mandate that companies don't or can't even leave the United States. It's a trap. At that point you have completely removed freedom of choice. That is morally wrong. And that should be the argument against Democratic leadership: stupid politics that are morally wrong.
There is also a big problem with FATCA that hasn't got much play in the United States because it doesn't impact Americans, except that it actually does:
The Foreign Account Tax Compliance Act became U.S. law in March 2010 but will take effect around the world on July 1, 2014. The goal of the law is to find offshore accounts held by U.S. taxpayers seeking to avoid paying taxes on them.Under the law, banks from around the world will be asked to sift through their accounts to look for clients with U.S. connections, then share that information with the U.S. Internal Revenue Service.The U.S. is looking for tax cheats, but critics say innocent people are getting caught up in the hunt.Who is affected by this law?The short answer is almost every Canadian. It is expected to cost banks substantial amounts of money to implement the systems required to find residents with U.S. connections, costs the banks may well pass along to all their clients.Some estimate it could cost $100 million for each financial institution.
So Canadians (and citizens of any other country that banks with a financial institution that wishes to remain FATCA compliant and do business with Americans), are forced to pay new bank fees to help Democrats catch those they believe to be American tax cheats. And they were people simply avoiding taxes legally. But your government greed is now affecting me personally. Thanks America.
And that comes from a polite Canadian. Imagine what someone in Switzerland or Brazil or Saudi Arabia might be thinking about this. This liberal oligarchy running D.C. is doing more damage to foreign relations than Americans seem to realize.
It's no coincidence that FATCA is one letter short of fatcat. That's how liberals view the business world. And voters just keep on helping institutionalize this way of thinking by empowering Democrats. It's idiotic.