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Saturday, July 05, 2008

Congress Passes Law To Tax The Hell Out Of Americans Moving To Other Countries

A preemptive strike against Americans who may be poised to flee an impending Obama administration’s tax-and-spend policies?

You probably didn’t notice this little provision inserted into the Heroes Act of 2008, passed by Congress on June 17.

The headlines in the press release about the law were about the increased benefits for veterans and families of deceased military.

But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act—the portion that states anyone voluntarily giving up his or her citizenship will be taxed on ALL of his assets as if he or she had sold them—paying capital gains on assets that have increased in value, even though they have not been sold!

That’s right. While everyone in the media is focused on keeping aliens out of America, Congress has voted to lock its citizens—or at least a good portion of their assets—into—America! Maybe they’re thinking that patriotism won’t be enough to keep the smart money from recognizing the coming increases in the tax burden.

Ask yourself: What revenue need in the government does this tax serve?  If your answer is “I don’t know” you begin to see why taxation for any purpose other than raising revenue necessary for government is a very bad thing.

By allowing politicians to pass things like “sin” taxes into our tax code for the purpose of deterring certain types of behavior - or passing tax exemptions and deductions for things like buying a hybrid vehicle to encourage certain types of behavior - we’ve opened the door to politicians being able to control us through taxation.

A sort of back door tyranny.  The founders never intended that government should dictate to us what vehicles we can drive, etc. but by using the power of taxation the government can exert that control anyway, albeit in a more limited sense.

We should demand that the tax code be simplified, and that taxation be limited to revenue-raising purposes only and not bouts of social engineering or outright attempts to deny citizens the liberty to move as we see in this instance.

Comments

I can’t imagine that anyone will be dumb enough to pay this tax.  They’ll move their money out of the country first.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on July 5, 2008 at 01:00 pm

since they are voluntarily giving up their citizenship they are no longer US citizens and don’t have the tax status a US citizen would.

Puzzlefeet on July 5, 2008 at 01:18 pm

And the MSM keeps informing us on how the convervatives are taking away our rights. Yet this kind of BS is allowed. Does Congress actually try to fix things. No, of course not. They pass more legislation to further insure their power base. Almost like the large flower in Little Shop of Horros....FEED ME...FEED MEEEEE..... Makes you nuts


ignorance is bliss, then I know why everyone is smiling.


‘If you don’t read the newspaper you are uninformed; if you do read the
newspaper you are misinformed.’ -Mark Twain

richNJ on July 5, 2008 at 01:55 pm

My apologies gents.  I should have posted this yesterday, but your comments brought this quote to mind and were the words of Thomas Jefferson on the anniversary of the Declaration of Independence:

The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately, by the grace of God.

These are grounds of hope for others. For ourselves, let the annual return of this day forever refresh our recollections of these rights, and an undiminished devotion to them.

-- Letter to Roger Weightman, declining to attend the 50th anniversary of the Declaration of Independence in the District of Columbia. This was the last letter written by Jefferson, who died 10 days later, on July 4, 1826.

I suppose we ought to keep those words in mind and contrast them to the sentiments of the overweening need to rule others by the likes of Hitlery, Obamination, Reid, Gore and Pelosi.


...for great justice

egpzpj.jpg

Move_Zig on July 5, 2008 at 02:07 pm

I hope the idiots in Bismarck don’t find out about this; it will give them ideas!

Kevin on July 5, 2008 at 04:05 pm

The control over us has been increasing through taxes, licenses, building permits, luxury tax, etc. for a long time.

As the government takes your money and gives it to someone else, you can do less and less.

Europeans’ freedom to move about is severely hampered by gasoline taxes. At least 70% of the price of gas is tax in almost all European countries. If the price they pay is $8.00 per gallon, the actual price of the gas is $2.00.

We only pay around $.50 per gallon in taxes so the balance of our $4.50 goes to prop up Saudi monarchs.

We will get there.

ews48 on July 5, 2008 at 04:08 pm

Ask yourself: What revenue need in the government does this tax serve?
By Rob on July 5, 2008 at 11:00 am

Pet projects like the war against Iraq.

ellinas on July 5, 2008 at 04:38 pm

The control over us has been increasing through taxes, licenses, building permits, luxury tax, etc. for a long time.

As the government takes your money and gives it to someone else, you can do less and less.

This is an old problem:

He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.

-- IN CONGRESS, JULY 4, 1776
The unanimous Declaration of the thirteen united States of America


...for great justice

egpzpj.jpg

Move_Zig on July 5, 2008 at 07:46 pm

Americans in recent years giving up their citizenship include:

Michael Dingman, chairman of Abex, and a Ford Motor director. He is now a citizen of the Bahamas and lives there.

Billionaire John (Ippy) Dorrance III, an heir to the Campbell Soup fortune. He is now a citizen of Ireland and lives there as well as in the Bahamas and Devil’s Tower, Wyo.

J. Mark Mobius, one of the most successful emerging market investment managers. Born a U.S. citizen, he has the German citizenship of his ancestors and lives in Hong Kong and Singapore.

Kenneth Dart, an heir to Dart Container and his family’s $1 billion fortune. He is a citizen of Belize and works in the Cayman Islands.

Ted Arison, founder of Carnival Cruise Lines. He kept Israeli citizenship and now lives there.

These newer emigrants join others of longer standing, including Robert Miller, the co-owner of Duty Free Shoppers International Ltd. He has a British passport obtained in Hong Kong, though he was raised in Quincy, Mass.

So, these people should be able to take there billions of dollars out of the country without paying tax?


Buy American, Buy Union Made… the job you save might be your own.

Buzz on July 6, 2008 at 05:19 am

So, these people should be able to take there billions of dollars out of the country without paying tax?

It’s their money.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on July 6, 2008 at 06:04 am

So, Buzz:  If I - like many Americans - wanted to retire to Ireland, Italy or the UK, the government should be able to make my life hell?


"Here lies, in honored glory, an American soldier, known but to God.”

“As a conservative, I will not be overly enthusiastic about voting for John McCain on November 4 - but I will be sprinting to the polling place to do so!”
Matthew May, conservative commentator, The American Spectator

pparets on July 6, 2008 at 06:09 am

No,pparets, if you retain your american citizenship status, the same tax laws will apply to you as now.  If you read the article, it is those who give up their citizenship status.  Why should a person giving up their US citizenship get the same tax benefits as a citizen?

So feel free to live in the UK, or Ireland or whereever you want as a citizen of the US.  No problem.

Puzzlefeet on July 6, 2008 at 06:37 am

If I - like many Americans - wanted to retire to Ireland, Italy or the UK, the government should be able to make my life hell?

pparets,

One modest correction, if I may, my friend. It is not “the government” we’re talking about here.  Its liberal Democrats whose policy is always to take from those who are successful and increase the price of prosperity.  Their underlying assumption is, obviously, that all earnings, all wealth, are not the private property of those who created the wealth or earned the earnings, but of those who rule instead.

By labeling this an action of “government” you give cover to those who are actually responsible, while lending an air of unwarranted legitimacy to their scheme.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on July 6, 2008 at 07:32 am

So, these people should be able to take there billions of dollars out of the country without paying tax?

Buzz,

It seems to have escaped your attention that taxes were already paid on this money when it was earned.  Dividend taxes, incomes taxes, capital gains taxes, inheritance taxes.  And, of course, as Whistler points out, its their money to begin with.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on July 6, 2008 at 07:39 am

Why should a person giving up their US citizenship get the same tax benefits as a citizen?

Why should terrorists get the same constitutional protections as US citizens?

On the other hand allowing law abiding Americans to keep their own money is less of a boon then giving favors for terrorists.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on July 6, 2008 at 07:43 am

If you really believe in the Government that was originally attempted by the Forefathers. You have to allow people to make their own decisions. Because a few Billionaires get away with some money, people turn jealous and say that it is not fair. So some people take the money they earned and leave. Don’t forget, they paid taxes on that money when they made it. What the Government is loosing is future taxes on interest it may make. Yet the Government continues to waste more money then you will every collect from people leaving this Country and no one tackles those problems. Maybe the problem is with the Congress and what they plan on using the money for. Yes the Government could possibly be the cause of why people are moving.


ignorance is bliss, then I know why everyone is smiling.


‘If you don’t read the newspaper you are uninformed; if you do read the
newspaper you are misinformed.’ -Mark Twain

richNJ on July 6, 2008 at 08:29 am

Whistler, habeus corpus is provided for.

Puzzlefeet on July 6, 2008 at 10:01 am

It’s never applied to foreign nationals on foreign soil during a time of war.

Funny that it could just lay there in waiting for THIS Supreme Court to find it.

Aside from the fact that this same court raped the constitution in hearing the case in the first place.

Our treaty obligations give us the right to shoot many of these terrorists on the spot.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on July 6, 2008 at 10:06 am
Avatar for Rober Hogan

This story proves my point again the need to vote every incumbent out of office every election.

Rober Hogan on July 6, 2008 at 05:57 pm
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