We are in year five of the Obama administration’s attempt to drag the citizens and residents of other countries into the U.S. tax net. To put it simply through FATCA (“exciting new changes in Canadian law”), a Media blitz (“Are you a U.S. Citizen, it’s time to check”), and the compliance industry (“Welcome to the U.S. Tax System”), millions of people with a “U.S. place of birth” are worried. Why are they worried?
Facts are stubborn things – The simple FATCA of the matter is:
1. Those born in the United States begin life as U.S. citizens.
2. All U.S. citizens are subject to the provisions of the U.S. Internal Revenue Code which has the practical effect of taxing people based on “place of birth”.
3. We live in a world where people have multiple citizenships and commonly change their residence from one country to another. This includes moving from their country of birth.
4. Because the United States employs “place of birth” taxation, the United States has the ability to impose direct taxation on the citizens and residents of other nations (who happen to have been born in the United States).
5. By imposing “place of birth” taxation on the citizens and residents of other nations, the United States is perfecting the art of transferring the capital of other nations to the United States Treasury.
6. The cumulative effect of this state of affairs is that U.S. “place of birth” taxation coupled with FATCA has developed into a severe interference with the sovereignty of Canada and other nations.
7. Sooner or later (probably later) the world will understand that U.S. “place of birth taxation”, is being used to extend the U.S. tax base into other nations. Should those nations object, the United States would refer to the “savings clause” in the Tax Treaty, which guarantees the right of the United States to impose taxation on those “residents and citizens” of other nations who were “Born In The USA”.
8. In other words, over time, the effect of U.S. “place of birth” taxation enforced by FATCA could be to allow the U.S. to “colonize the world”.
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