By: Charles Benninghoff
Beginning July 1 2014, the Foreign Account Tax Compliance Act (FATCA) will go into effect. This massive global tax increase was passed back in 2010 when Nancy Pelosi and Harry Reid controlled the majorities in the US house and Senate.
This thoughtless tax scheme will affect the bank accounts of every single American, but it will only bring in enough new tax revenues to run the federal government for a grand total of 12 minutes. Read more about FATCA and its devastating effects here.
In addition to costing Americans more money for ATM fees, checking account fees and other new costs for banking, FATCA will pave the way to set up an international taxation system, to be run by the United Nations and give the numerous Muslim countries - including those controlled by the Muslim Brotherhood such as Libya - control over the United States.
There is a good chance that the House Majority will vote to repeal FATCA if Americans raise their voices against it. Many Democrats are starting to back away from this act as well, because they do not want a tax increase to go into effect right before the elections.
When the Democrat majorities in the House and Senate passed FATCA four years ago, they billed it as a measure to go after "fat cats" who were tax-sheltering money in foreign bank accounts. This was the typical class warfare that we always hear from Pelosi, Reid and Obama.
But, then Pelosi, Reid and Imam Obama wrote the tax so it would have devastatingly adverse impact upon the United States.
US citizens who do not have a foreign bank account should also oppose this tax increase. Find out how you can help stop this senseless act here.
Here is how this surprise FATCA tax increase will affect American families:
- Even if you do no banking overseas, your bank is required under FATCA to turn over all of your personal, private banking information to a "fish bowl" international conglomerate where every foreign government - even those run by the Muslim Brotherhood - can access it. Say goodbye to your financial privacy.
- FATCA allows the IRS to enter into "intergovernmental agreements" with foreign nations. These are treaties, plain and simple. However, under FATCA, the constitutional advice and consent of the Senate is bypassed. "We the people" have no say in how our government enters these foreign financial treaties.
- It will cost private sector banks in America $8 BILLION to comply with FATCA each year. This will be passed on to you through higher ATM fees and other costs.
- Meanwhile, FATCA is expected under the most hopeful predictions to bring in a measly $800 million a year in new tax revenues. That is enough to run our federal government for 12 minutes.
- Foreign investors will be scared away from America. If their banks or their government does not comply with FATCA, these investors could have 30-percent of their US assets seized by the Treasury Department. This will kill jobs and stifle growth at a time when Americans are suffering under the disastrous Obama economy.
- Finally, FATCA could start World War III. Obama is expecting every foreign government to comply with a law that was passed by a Democrat-controlled Congress in America. How do you suppose Vladimir Putin and other world leaders will react when Obama seizes their US assets? Other countries are under no obligation to follow OUR laws, but FATCA allows the Treasury Department to seize the US assets of foreign countries if they do not comply by handing over all of their bank customers' information. This is insane and wars have been started many times by the socialist style of banana republic politics that Obama is playing.
- And, surely, FATCA will cause massive withdrawals from US-based banks by foreigners who do not wish their information shared or their transactions taxed. This last point, alone, could cause massive financial upheavals around the world.
FATCA is about as unjust as it gets. It will drain money from the private sector to create a trickle of new money from a handful of tax cheats.
Meanwhile, foreign governments will be enraged by the US once again.
Obama is so arrogant that he thinks he can force foreign banks and governments to comply with laws that his party passes.
FATCA will only generate a tiny bit of revenue while creating a huge drain on our economy. Americans have to undo this mistake.
You can let your voice be heard by Congress telling them to repeal FATCA here. Please also tell others about this tax increase, because most Americans have not even heard of FATCA, by sharing this link.