In case you have not heard, Superman renounced his American citizenship. His action falls in line with a growing trend in the United States in which a record number of people are following the Man of Steel’s lead. In an Action Comic, featured in its record-breaking 900th issue, had Superman renouncing his U.S. citizenship following a clash with the federal government.
Following In Superman’s Footsteps
It just does not pay to be an American anymore and Americans are renouncing their U.S. citizenship at record rates. The citizenship renouncements have surged over 600% in the second quarter from the previous year. This is largely due to the fact that the government is preparing to introduce tougher asset-disclosure rules with more strict penalties.
According to recently published Federal Register figures, 1,810 U.S. citizens have renounced their citizenship, in only the second quarter of this year, as compared with 235 former citizens in the whole of 2008.
With Laws Like These, No Wonder Americans Are Leaving
Already, the United States is the only country in the world which will not let its citizens order cheaper foreign prescriptions in order to preserve the pharmaceutical mafia monopoly. Along these same lines, the U.S is the only nation in the Organization for Economic Cooperation and Development that its citizens wherever they reside in the world on income that is not earned in the United States.
The government says they are searching for tax cheats in offshore centers, including Switzerland, as the government is in a desperate search for more revenue as the try to curb the budget deficit. What they are finding are American citizens who are being fined tens of thousands of dollars for IRS laws that most didn’t know existed.
American once hid their foreign assets in Swiss and German banks. However, the IRS and their partner, the U.S. governmenthas coerced these foreign banks to report the assets of American citizens, under the much tougher asset-disclosure rules as legislated by the Foreign Account Tax Compliance Act (FACTA). Thus, many more of the six million Americans, who are living overseas, are weighing the cost of holding a U.S. passport and retaining their citizenship.
Just the FACTA’s Ma’am
The FACTA law, the only law of its type in the world, was passed in 2010. The law requires both foreign and domestic banks to withhold 30% of transferred assets if the IRS determines that the American account holder MAY have not paid “enough” tax. FACTA is pretty much the law around the planet. However, there a few banks in Canada, Germany and other locations who are balking at the intrusive nature of the IRS foray into their “sovereign banks.” Regardless, FACTA will be 100% operational by July 1, 2014.
Before You Plan Your Escape From Police State America, You Should Be Aware of This
Let’s take the hypothetical case of an American family who have become gravely concerned about the emerging police state surveillance grid. The mom works, let’s say, for the Archdiocese of her local city. She is active in protesting Obama’s imposition of abortion insurance coverage under Obamacare. The dad is a nationally syndicated talk show host who decries Obama’s every move which violates the but the eventual outcome might prove very dangerous for the family. Therefore, the parents have cautiously determined that if there is ever a Stalin type of purge in the country that they could be at risk for imprisonment as a political dissident, or even worse.
Subsequently, in this hypothetical example, the parents have made repeated trips to various locations around the world to find a safe haven in which they could flee if the signs of persecution become more ominous. They decide on establishing Finland as a safe haven destination. The parents decide to set up a bank account in Finland and they decide to purchase a vacation rental to earn some income until the day comes that they might have to flee for their lives.
Under FACTA, 30% of the funds being transferred to the Finnish bank account would be stolen by the IRS. If the IRS discovered the rental revenue, this rogue organization which spies on and harasses political dissidents, would confiscate the estimated amount of the rental income plus late fees and penalties. In this example, this family could leave the country, but would do so without a significant amount of their assets.
In one more hypothetical example, let’s say that Bob and Cindy decide enough is enough and they relocate to Switzerland, where Cindy has relatives. They can leave, but they are subject to a 30% ‘exit tax’ for those who choose to leave the U.S. Who Needs a Mafia when we have this?
During the last 25 years, a number of millionaires and billionaires have renounced their citizenship. Among these expatriates are Ted Arison, the late founder of Carnival Cruises, and Michael Dingman, a former Ford Motor Co. director.
A second law, the Report of Foreign Bank and Accounts , which has been around since 1970 but now carries penalties for noncompliance. This law requires all Americans, including those living abroad, with at least $10,000 in overseas bank accounts, to file a supplementary form disclosing all of their foreign accounts.
That includes any accounts in which the U.S. citizen has a financial interest. That could include a joint account with a spouse or child, accounts for corporations in which the American owns more than 50% of the value of shares of stock, or any trust or estate that benefits the U.S. citizen.
Rules for Thee but Not for Me
Bank of America didn’t pay a single penny in federal income taxes, exploiting the tax code so as to avoid paying its fair share.
Despite receiving billions of dollars from the federal government every year in taxpayer subsidies from the U.S. government, Boeing didn’t “pay a dime of U.S. federal corporate income taxes” between 2008 and 2010.
Warren Buffet has bragged that he pays no tax and his secretary pays more tax than he does. Maurice Strong, David Rockefeller and Bill Gates and his foundations pay no tax. The CEO of General Electric, Jeffrey Immelt pays no tax either.
These are classic cases of rules for thee, but not for me. How do they get away with this since FACTA supposedly is cracking down on offshore accounts? Typically, Immelt, Rockefeller, Buffet et al, invest their money in Cayman Island, tax exempt banks in which the IRS does not investigate. This is called selective enforcement and constitutes a 14th Amendment violation, but remember, we live in a country in which the justice system is designed to protect special interests and not defend the Constitution as it was designed to do.
You must be wondering why aren’t more Americans flocking to these Cayman Island accounts? Simple, most of these tax havens require a $30,000,000 minimum deposit. How many Americans have 30 million dollars to deposit?
What exacerbates this unfair tax situation which is driving record numbers of Americans to renounce their citizenship, is the fact that 50% of Americans pay no federal tax at all! With 101 million Americans on food stamps and countless of millions on other federal welfare programs, the Obama phone crowd pays no tax. If you are gainfully employed, you are paying their taxes for them. And with amnesty for 30 million illegal aliens on the horizon, you will be paying their taxes as well.
Right now, if you want to escape America with the clothes on your back, you can. However, even the days of unfettered emigration to other countries is almost over. There is also an Iron Curtain provision in the new immigration bill which will make it almost impossible to leave the U.S.
Superman might have the right idea in renouncing his citizenship. And when we couple these IRS abuses within the context of an emerging police state, we might soon be saying, “Look up in the sky, it’s a bird, it’s a plane, no it’s a drone!”