Don’t tax him—Don’t tax me—Tax the man behind the tree. A number of additional questionable issues also come up when running search terms related to FATCA.
The spending is strictly domestic infrastructure
The Foreign Account Tax Compliance Act (FATCA), was a portion of the domestic stimulus bill HR 2847 Hiring Incentives to Restore Employment (HIRE) Act. FATCA’s revenue is derived from US citizens overseas, whilst the stimulus is strictly domestic. Here is a spending breakdown applicable for a House version in December 2009.
$154.4 billion for infrastructure projects, aid to state and local governments to preserve public service jobs and additional assistance to those affected by the recession. The total includes $48.3 billion for highway construction, mass transit and other infrastructure projects. The Senate may take the legislation up early next year. The funding for infrastructure is broken down as follows:
•Army Corps of Engineers- Civil Works : $715 million
•Bureau of Reclamation: $100 million
•Clean Water SRFs: $2 billion
•HUD Public Housing: $2.065 billion
•Highways: $27.5 billion
•Transit: $8.4 billion
•Amtrak: $800 million
•Airports: $500 million
•Ship Construction: $100 million
Yet the revenue is international–from US citizens overseas
Although said otherwise, FATCA’s revenue is derived from using a penalty structure intended for criminals upon unsuspecting residents outside USA. There are old and forgotten rules, which had required criminals inside USA to report yearly to a national police unit called the Financial Crimes Enforcement Network (FINCEN). The report is the Financial Bank Account Report FBAR. If a criminal inside USA had not reported his bank accounts outside of USA, then FINCEN would be able to confiscate between 50% and 300% of that criminal’s assets. It’s an Al Capone type law from 1970—if they can’t really prosecute somebody, they can just assume that they are guilty of tax evasion. Although such laws are useful for police units—such laws aren’t constitutional and went to war with England a couple of times in order to get away from that sort of police activity.
FATCA awakens that old law and redirects it at honest US citizens, holders of un-terminated US green cards residing in their home countries, and dual citizen immigrants living inside USA. Whilst the talking points used in the passage of FATCA talk about all of the bad-guy tax evaders, the reality is that their objective is to acquire international funding for the domestic projects. FATCA’s method is to acquire all of the banks of the world to identify their innocent resident US citizens, innocent holders of US green cards, and the bank accounts of each person who has innocently emigrated (temporarily or permanently) to USA. It matters nothing to the US IRS that these persons are not criminals and should not be threatened with 50%-300% fines of everything they own.
FATCA is a huge burden upon foreign banks—–who will be deputized IRS agents.
The world’s banks will be tasked with $200+ billion (ref 1) of costs for implementing the US domestic law. These costs can seriously damage the world banking system.
The Administration has a Motive–It’s own favorite personal banks
Those that passed the bill are heavily funded by US-established banks, such as Goldman Sachs. Here are the contribution amounts to those who are listed as having voted
(Y) Senate Obama, Barack $996,595 (D)
* Senate McCain, John $230,095 (R, an avid FATCA supporter) (*N)
(Y) House Himes, Jim $155,098 (D)
(Y) Senate Dodd, Chris $112,500 (D)
(Y) Senate Specter, Arlen $47,600 (R)
(Y) Senate Reed, Jack $30,100 (D)
(Y) Senate Baucus, Max $26,000 (D)
(Y) Senate Harkin, Tom $24,580 (D)
(Y)Senate Lautenberg, Frank R $24,100 (D)
(N)Senate Chambliss, Saxby $22,400 (R)
(Y) Senate Collins, Susan M $21,900 (R)
(Y) Senate Warner, Mark $21,800 (D)
(Y) Senate Landrieu, Mary L $20,700 (D)
An amendment to fund Barack Obama’s Corrupt Partner was denied
Nacy Pelosi disallowed an amendment which would prohibit ACORN from using the FATCA stimulus subsidies. FATCA is the political action group whose activities have included voter fraud.
Any commenter is free to elaborate upon and explain the illegal Intergovernmental Agreements which were signed with foreign governments.
The shady sides of FATCA can be located. Any commenter can add more shady things found.
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(1) info for stimulus breakdown http://www.asce.org/Content.aspx?id=2147483843