Finally, someone besides us is saying what we have been saying for months. “U.S. is the biggest tax haven in the world.”
I think the author, Daniel Mitchell, is American. At least, he works for the Cato Institute in Washington, D.C. His article was published in Switzerland, I believe.
In Janus Face of US Tax Policy, Mr. Mitchell asks the same question we have been asking:
How can a nation be a tax haven while simultaneously browbeating other jurisdictions that have similar policies?
Mr. Mitchell comes to the same conclusion we do:
Politicians are not exactly known for their intellectual honesty and rigor, so this disjointed approach should not be too surprising.
Unfortunately, the world’s biggest tax haven is not just bullying smaller tax havens. It is also threatening non-tax haven nations, including those like Canada which has a 70 year effective tax treaty with US to combat tax evasion.
I suspect US politicians will not listen to Mr. Mitchell any more than they listen to anyone else. As Hazy2’s thread says, Who’s listening. I think the answer is nobody. Listening is another trait politicians are not known for.
Canadian born cross border financial planner, Bob Keats, has recently released a book ” A Canadian’s best tax haven; The U.S. : Take your money and drive”
Here’s a blurb copied from Amazon.ca
“Keep more of what’s rightfully yours — legally! When Canadians think of tax havens, they rarely think of the US; but it truly is one of the best options available for Canadians today. A Canadian’s Best Tax Haven: The US proves it by showing readers actual tax situations and comparing taxes paid by a person with exactly the same income living in Canada, the US, and a traditional tax haven. By the author of the best-selling cross-border tax book The Border Guide: A Guide to Living, Working, and Investing across the Border, this informative book covers the following: What is a tax haven? Why you might want a tax haven Why traditional tax havens don’t work What some of the prevalent myths about tax havens are and what the truth is Hidden costs of tax havens The US-Canada Tax Treaty Information on cross-border taxes for snowbirds –And more! This book shows you how to take advantage of tax haven strategies available to Canadians, easily and legally, and reduce your taxes payable. A Canadian’s Best Tax Haven: The US doles out indispensable advice that will help you keep more of what you earn. ”
I haven’t read the book, but I was provided with PowerPoint slides of a presentation Keats made in January to RBC Wealth Management portfolio advisers. The book’s title and blurb accurately describe Bob Keats’ advice to Canadians- go South.
Maybe all of us here have got everything wrong. We should be trying to reclaim U.S.citizenship instead of shedding it!!!
—Just kidding!!!
Here’s another article which says exactly what we’ve been saying. IRS could struggle to provide reciprocity. Surprise, Surprise.
http://mycooconnect.com/archives/4925
US banks are kicking up a fuss. IRS may not be able to manage reciprocity. Just more example of the world’s biggest tax haven.
Blaze,
Glad to see you are back. One project I am working on is to try to get The Agenda with Steve Paikin on TVO(TVOntario) to do a show on this issue(US Canada Tax and FATCA). I am planning to suggest yourself as a guest given your previous background in TV.
@Tim: Thanks for thinking of me. I’m not certain I want to be that public on this issue at this time. As you know, I am not even applying for a CLN because I want to stay completely off the radar of both IRS and DOS. I think going on TVO to discuss this publicly could put me directly in their sight lines.
Is TVO receptive to doing this on The Agenda?
The answer is maybe. I need to get a list of people who might willing to appear(taking into account that some of my suggestions might be unavailable or unwilling). This is a bit of a medium term project although I think The Agenda will be responsive to this type of complex issue than CTV, CBC, etc.
Thoughts on people were:
Yourself(Blaze)
Phil Hodgen
Arthur Cockfield(Queen’s University)
Marylouise Serrato(American Citizens Abroad)
Jackie Bugnion(American Citizens Abroad)
Don Whitely
Roy Berg
Elizabeth May
An NDP MP
A Conservative MP(perhaps John Weston)
Allison Christians(of McGill Law School lots of ties to the US legal “establishment” more than Cockfield).
From the “US” Side
J. Richard Harvey(FATCA “creator” so to speak)
David Rosenbloom(of NYU law school)
Scott Michel(Caplin and Drysdale)
Mark Mathews(Former Assistant IRS Commissioner)
Neil Brooks(a Canadian law professor at York in “favor” of FATCA)
Linda McQuaig(Toronto Star Columnist Canadian in “favor” of FATCA)
For more on Brooks and McQuaig see my post at Brock:
http://isaacbrocksociety.ca/2012/09/22/linda-mcquaig-and-neil-brooks-traitors-to-canada-on-fatca/
Maura Drew-Lytle(CBA)
Darren Hannah(CBA)
And I probably need even more than these people because a lot would probably be unwilling or unable to appear. For now I unfortionately have to rule myself out of consideration(although that is probably for the better in convincing them to do a show on this)
@Tim: Well, I’m certainly honourned that you would include me in such a prominent list of suggested guests, but I still worry about placing myself on IRS radar.
I would be willing to discuss it with you or with TVO if we could find a way for me to participate without revealing too many personal details about myself. I do not, however, want to travel to Toronto to do it.
Don’t worry. I will strike your name off. Like I said this is a long ways away but my first initial contact did seem to indicate their might be some interest on their part on doing something on this. I guess the problem is as you said who wants to publically speak out on this issue(and as in my own case I don’t necessarily think that is unwarranted although for me personally it is work and professional reasons at the moment). Some of the issue with Toronto is I think they want at least a few guests in studio when they tape the shows especially as in “theory” this is supposed to be an issue that effects many in Canada and Ontario. Even people who have fully renounced and done all the paperwork really I don’t think want to talk about it too much(Reid Amendment). I know for example Jeffrey Simpson who was born in the US is a frequent guest on the Agenda but I have never heard him say anything about FATCA or US Tax.
I do think this story needs to get out beyond places like Sandbox and Brock but I don’t know how to do it. Nobody wants to talk about it not the government, not the banks, not the people affected, not the media, not really even the lawyers beyond trying to scare people.
@Tim: Thanks for understanding.
I agree we need to get the word out on a broader basis. But, with opportunities to cash in on our plight, it is unlikely many people are willing to go public on their situation.
Calling All Whistleblowers: IRS needs $$$!
http://thetaxtimes.blogspot.ca/2012/10/attention-all-whistle-blowers-irs-needs.html?goback=.gde_3731046_member_173385925
Getting back to the original post, I find it interesting that libertarians are leading the way in the U.S. against FATCA. I never thought I might be rooting for the Libertarians, but as the saying goes, “FATCA makes strange bedfellows”
Some are suggesting that the far right might vote for the Libertarian candidate in the Presidential election because of their dislike for Romney and that those votes may make a crucial difference in some states. Just like what happened to Gore in Florida with 4 % of the vote going to Nader.