Yesterday, there was a new post on the Isaac Brock Society Site, “Welcome to the United States: You must now pay taxes to the USA”, reporting that US border guards are now hassling people about taxes because they’ve spent too much time in the US.
‘She started telling me about her uncle who had a place in Arizona where he and his wife spent 6 months per year, mostly because of his allergies. This year they were headed down and were stopped at the border and told that they had been flagged as being required to file a tax return on their worldly income. When her uncle told them they never spend more than the 6 month allotted time, they were told that they could visit 6 months but would have to file a tax return based on a formula that would basically only allow them a few months per year otherwise.’
To read entire post, go to the Isaac Brock Society:
With all that’s gone on down below our border with FATCA and various permutations, with bills introduced for not accepting credit cards from countries not FATCA compliant, confusing regulations on when non-US persons can be taxed, etc, I get concerned and confused. I’m not the most politically astute person (and that is an understatement) and there are some really smart people posting and commenting on the Isaac Brock Society site, so I asked the following question,
So, is there some big plan by the US gov’t that I’m not seeing? They’re forcing US citizens that don’t live in the country to renounce. They’re forcing people who spend their vacation money there to go elsewhere. They’re forcing non-US people who invest in property in the US to sell and leave. They’re forcing people to give up any investments in the US. Are they battening down the hatches in preparation for something? I just don’t get it!
Answers included that no there is no plan, just the ‘law of unintended consequences’ or ‘the blind leading the blind’.
It got me to thinking – which is more frightening? That across our border lies a crew of malevolent trolls scheming machiavellian plots to replenish their treasure chest, or that there is a group of clowns driving willy nilly in their minicars, smashing into each other, each intent on grabbing their own treasure?
I lean slightly toward the latter as being scarier. At least if there’s a plot, there’s something to fight. If you can find a wasp’s nest, you can get rid of the wasps in one fell swoop. If all you have is a bunch of angry wasps buzzing around, you can’t swat each one and hope to get rid of the problem.
Will the US government come to it’s senses and realize that they are overreaching in their grab for money? I doubt it. I sincerely believe they are intent on moving to a complete big brother world where they have financial control over every person that they, alone, determine, is a US person. With financial control comes the ability to punish or reward each person, effectively being able to control what they say, where they live, how they live.
Will the Canadian government stand up to the US and say that they will not allow the invasion of privacy of Canadian citizens, that they will not allow Canadian wealth to be siphoned off to the US, that they will not allow the US to re-claim Canadian citizens in order to tax and fine them? I’m very afraid they will not.
A lot of people seem to think that FATCA is fait accompli and the best that can be done is to modify the terms of it. Unfortunately that seems to be the macro opinion of most banking institutions and countries. It only seems to be at the micro level, the individuals most affected, who think that FATCA must be resisted at all levels.
On second thought, does it matter whether it’s trolls or clowns? It’s the end result of their actions that matter, and I’m afraid that Aldous Huxley’s Brave New World is our future.