Tags: Expatriation | taxes | barriers | FATCA

Is Expatriation in your Tax-Planning Future?

Thursday, 25 October 2012 01:02 PM Current | Bio | Archive

There are three primary considerations when thinking about leaving the United States.

Those considerations involve your investment assets or business, you and your loved ones, or both.

Over the last 40 years or so, clearly the U.S. government has been expanding its control over your life and your wealth while at the same time limiting your personal liberties.

Congress has been great at recognizing “needs” and voting to have Congress fulfill those newly created public needs.

The result is an increasing confiscation of private money and earnings with increasing coercion and penalties to match.

Fear is overtaking the feeling of security.

This might not be something that Wall Street or Washington, D.C., takes into account when spewing out reams of data and statistics, but for the people on Main Street they viscerally know something bad is happening.

I am no different than a lot of other professionals focusing on wealth preservation who have an increasing number of inquiries on what to do to be protected.

The failure of government is staggering. Ann Rand’s “Atlas Shrugged” is no longer a piece of fiction, but a reality to the productive and unproductive alike.

Private wealth and private decision making is no longer acceptable in a growing number of areas where government determines the public interest is more important than private property and personal rights are.

For people with this belief, living the United States becomes an unattractive solution.

There is an enormous fear of the income tax system, which is certainly reasonable.

With the adoption of the income tax system almost 100 years ago, the role of government and private property ownership switched places.

Effectively, the government owns all your property and your labor and decides what little bit you should be allowed to keep.

Those “loopholes” politicians talk about, people pay for them. The mortgage-interest deduction comes because you paid interest. Depreciation comes about because you bought equipment or property.

This is not a voluntary tax system. Coercion is the method of compliance. You don’t have a choice. And lots of people have grown to hate it.

When you can’t escape what you hate and there is no hope it will get better, then the rational action step is to get out of that system.

The value of the dollar is in its acceptance for purchasing power. Almost anyone with even a modicum of basic economics realizes the purchasing power of the U.S. dollar, as a fiat currency, is being destroyed.

For some, this is a reason to either put their money in an asset class they feel maintains purchasing power or put them in some jurisdiction where they can acquire those assets without fear of confiscation.

Increasingly, Congress is putting up barriers to trap money and people from leaving the country.

The so-called “qualified-intermediary” rules and the draconian Foreign Account Tax Compliance Act with the newest expatriation tax law have the effect of creating an effective “Berlin Wall” to trap investors, businesspersons and others in the United States.

For many, the expatriation of themselves or their assets is the tax plan of today.

Many others will find expatriation will be their tax plan for the future.

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There are three primary considerations when thinking about leaving the United States. Those considerations involve your investment assets or business, you and your loved ones, or both.
Thursday, 25 October 2012 01:02 PM
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