Does the Tea Party support Tax Dodgers?
by Linda Beale
Does the Tea Party support Tax Dodgers?
Andrew Leonard’s July 27 article in Salon, Tea Party Shields Tax Dodgers, looks at the way Jim DeMint and Rand Paul are carrying water for the big banks–suggesting that Treasury shouldn’t be implementing the “FATCA” legislation passed as part of the HIRE act because it might cost the big banks some paperwork they’d rather not do.
Here’s the issue with FATCA. It requires banks to report on substantial accounts held abroad–more than $50,000 for individuals or more than $250,000 for entities.
The Treasury believes it can generate almost $9 billion in additional tax revenues through the implementation of FATCA over the next ten years. But Paul, DeMint and other right-wingers have complained about the cost to banks to carry out the law.
As Leonard puts it,
FATCA isn’t about making life hard for expatriates. It is targeted at big players who are moving huge amounts of cash overseas for the specific purpose of avoiding their U.S. tax obligations. And Rand Paul and Jim DeMint are defending these upstanding members of the 1 percent by carrying water for banks who want to avoid the paperwork costs involved in ferreting out the tax dodgers.
Is that how the Tea Party wants this country to be run — in the best interests of the richest Americans and the banks?
cross posted with ataxingmatter
More narrowly directed, but otherwise the same effect, as underfunding IRS enforcement efforts. The return on enforcement efforts is, for now, enormous.
In anything like “gubmint bein’ run lack a bidness”, that would mean a big increase in funding for enforcement. Gubmint idn’t run lack a bidness. It’s run lack a plantation, y’all.
By the way, I think you misspelled “fatcat”.
Like some freak’n computer program can’t be set up that spits out the account that meets the limits of reporting.
Real hard that is. Not!
Note that the effect of FATCHA is that most non us banks will now refuse an account for someone with a US passport. It is just easier that way. There have been many reports that expats have been tripped up by this when existing accounts in non us banks are closed. (I have not seen but suspect that foreign branches of the US banks will accept accounts). Imagine if you are not a fat cat and can not get a local account if working abroad. For example assume you are working as a divemaster in Grand Cayman, making not a lot more than minimum wage, and can’t get an account. The rules need to be amended to not apply to accounts under say 50k .
the tea party doesnot support timothy geithner
FATCA isn’t about making life hard for expatriates.
That may not be the intent, but it will certainly be the effect.
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