Sunday 18 September 2016

The US is a Hypocrite in Implementing FATCA.

The Stamp Act of 1765; an act of Parliament of Great Britain that imposed a “revenue tax” on the Thirteen Colonies was the spark in the tinder that lit off the Revolutionary War of 1775. Colonists objected to the act that taxed their colonies without representation in Parliament. Petitions were given to Parliament and roundly ignored, prompting an outburst in response to the accusations from Charles Townsend of being ungrateful, “and now will these Americans, children planted by our care, nourished up by our Indulgence until they are grown to a degree of strength and opulence, and protected by our arms, will they grudge to contribute their mite to relieve us from heavy weight of the burden which we lie under?” This provoked a reply from Colonel Isaac Barré which read: “They planted by your care? No! Your oppression planted ‘em in America. They fled from your tyranny to a then uncultivated and unhospitable country where they exposed themselves to almost all the hardships to which human nature is liable, and among others to the cruelties of a savage foe, the most subtle, and I take upon me to say, the most formidable of any people upon the face of God’s earth. …

They nourished by your indulgence? They grew by your neglect of ‘em. As soon as you began to care about ‘em, that care was exercised in sending persons to rule over 'em, in one department and another, who were perhaps the deputies of deputies to some member of this house, sent to spy out their liberty, to misrepresent their actions and to prey upon 'em; men whose behaviour on many occasions has caused the blood of those sons of liberty to recoil within them … .

They protected by your arms? They have nobly taken up arms in your defence, have exerted a valour amidst their constant and laborious industry for the defence of a country whose frontier while drenched in blood, its interior parts have yielded all its little savings to your emolument … The people I believe are as truly loyal as any subjects the king has, but a people jealous of their liberties and who will vindicate them if ever they should be violated; but the subject is too delicate and I will say no more.

Yet two hundred and thirty five years later, America would invoke their own “stamp act” – named the Hire Act, ratified by Barack Obama and the Democratic Party, which embedded within lay the controversial Foreign Account Tax Compliance Act (FATCA) – a timebomb of epic proportions with severe ramifications for the colonists of today, American expatriates who lived in countries abroad. These Americans abroad were either dual citizens or citizens of one country born to an American abroad carrying a Trojan horse citizenship which existed solely to decimate their “foreign” bank accounts considered local to those “Americans” who lived in those countries and worked there.

Under the guise of rooting out tax-cheats (while vilifying hard-working Americans abroad) with their own version of Charles Townsend’s venomous, scurrilous accusations of “look at what we have done for you, we protect you under our nuclear umbrella…and you have the benefits (which no one can actually quantify) of being an American…so pay your fair share”, they set about to scrape up every single rotten cent of “taxation without representation” as their English fore-rulers did before them. In fact, the United States of America is embarking on the same road as their English forebears did 235 years prior. In fact a popular slogan in pre-Revolutionary War Boston was the phrase coined by James Otis: “taxation without representation is tyranny” later shortened to “No Taxation Without Representation”. In fact the very essence of the Revolutionary War was rebellion against citizenship taxation.

Americans Abroad of modern times have taken up that cry. Because one after the other, our spineless governments have capitulated under threats of 30% penalties/sanctions (U.S. payors making payments to non-compliant foreign financial institutions are required to "deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment".) levied against their financial institutions. These are tactics comparable to La Familia protectionist rackets. This financial levy has caused the rest of the world to institute laws to permit the otherwise illegal act of defying their own Banking Privacy Acts. In fact Canada rewrote its own Banking Privacy Law to make it legal for FATCA to stick their tentacles into the Canadian banking system.

FATCA is economic warfare. Allowing a foreign country to siphon revenue from a nation’s revenue stream is capitulation to economic warfare. Oran's Dictionary of the Law (1983) defines treason as "...[a]...citizen's actions to help a foreign government overthrow, make war against, or seriously injure the [parent nation]. So any national leader who signed the United States Internal Revenue Service’s Inter-Governmental Agreement (henceforth referred to as IGA) is now defined as a traitor to their country and subject to prosecution under each nation’s treason statutes.

Citizenship taxation is only practiced by two countries. The first being the third world country of Eritrea; the second being the United States of America. The second nation hypocritically vilified the first for its practice of levying 2% taxes against their expatriates.

The United States is a hypocrite when it comes to citizenship taxation. Its inception was based on protest against citizenship taxation (taxation without representation) – its reasons for making war against Great Britain; the US’s progenitor. Yet it subjects its own citizens abroad (in the same situation as the 13 Colonies) to the same kind of taxation as it fled from two hundred and thirty five years ago. It must be said that Isaac Barré’s words ring true today as it did then: “They nourished by your indulgence? They grew by your neglect of ‘em. As soon as you began to care about ‘em, that care was exercised in sending persons to rule over 'em, in one department and another, who were perhaps the deputies of deputies to some member of this house, sent to spy out their liberty, to misrepresent their actions and to prey upon 'em; men whose behaviour on many occasions has caused the blood of those sons of liberty to recoil within them …

We, who have toiled to create our own fortune, paying taxes to the land within which we reside, to the foreign nations in which we toil, have been preyed upon by the Internal Revenue Service, for our meagre wealth; while those lying within the borders of our native land scream hypocritically for our heads and our wealth.

Samuel Adams stated: "For if our Trade may be taxed why not our Lands? Why not the Produce of our Lands & every thing we possess or make use of? This we apprehend annihilates our Charter Right to govern & tax ourselves – It strikes our British Privileges, which as we have never forfeited them, we hold in common with our Fellow Subjects who are Natives of Britain: If Taxes are laid upon us in any shape without our having a legal Representation where they are laid, are we not reduced from the Character of free Subjects to the miserable State of tributary Slaves."

Samuel Adams charges that we are tributary slaves with the implementation of taxation without representation. The representation being where expats currently live; yet no matter how expats are allowed to vote in the states from which they originated, they are never represented. The politicians represent those who reside within the state and curry the bonus votes of expats from those states whilst ignoring them. So no, there is no representation in any sense of the word.

And if there is no representation, there should be no tax or there should be open rebellion.

My family has chosen the latter: We choose to pay taxes to no-one except the leaders of the land in which we reside in and deem to be protected by. As a Canadian born citizen of Canada married to an American Abroad, I should have expected protection for my wife and my accidental American citizen progeny who were born here in Canada. Yet our treasonous leaders in government capitulated and threw one million plus dual citizens of Canada with US ties under the bus. And the United States has exhibited supreme hypocrisy in initiating the same kind of taxation for which they vilified Great Britain for two hundred and thirty five years previous.

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