Tax horror: White House secretly passes capital controls

[muleman]

It's Official - America Now Enforces Capital Controls

Submitted by Tyler Durden on 03/28/2010 14:27 -0500

President ObamaSwitzerland

It couldn't have happened to a nicer country. On March 18, with very little pomp and circumstance, president Obama passed the most recent stimulus act, the $17.5 billion Hiring Incentives to Restore Employment Act (H.R. 2487), brilliantly goalseeked by the administration's millionaire cronies to abbreviate as HIRE. As it was merely the latest in an endless stream of acts destined to expand the government payroll to infinity, nobody cared about it, or actually read it. Because if anyone had read it, the act would have been known as the Capital Controls Act, as one of the lesser, but infinitely more important provisions on page 27, known as Offset Provisions - Subtitle A—Foreign Account Tax Compliance, institutes just that. In brief, the Provision requires that foreign banks not only withhold 30% of all outgoing capital flows (likely remitting the collection promptly back to the US Treasury) but also disclose the full details of non-exempt account-holders to the US and the IRS. And should this provision be deemed illegal by a given foreign nation's domestic laws (think Switzerland), well the foreign financial institution is required to close the account. It's the law. If you thought you could move your capital to the non-sequestration safety of non-US financial institutions, sorry you lose - the law now says so. Capital Controls are now here and are now fully enforced by the law.

Let's parse through the just passed law, which has been mentioned by exactly zero mainstream media outlets.

Here is the default new state of capital outflows:

(a) IN GENERAL.—The Internal Revenue Code of 1986 is amended by inserting after chapter 3 the following new chapter:

‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

‘‘Sec. 1471. Withholdable payments to foreign financial institutions.

‘‘Sec. 1472. Withholdable payments to other foreign entities.

‘‘Sec. 1473. Definitions.

‘‘Sec. 1474. Special rules.

‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL INSTITUTIONS.

‘‘(a) IN GENERAL.—In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (, the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.

Clarifying who this law applies to:

‘‘© in the case of any United States account maintained by such institution, to report on an annual basis the information described in subsection © with respect to such account,

‘‘(D) to deduct and withhold a tax equal to 30 percent of—

‘‘(i) any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and

‘‘(ii) in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under paragraph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection.

What happens if this brand new law impinges and/or is in blatant contradiction with existing foreign laws?

‘‘(F) in any case in which any foreign law would (but for a waiver described in clause (i)) prevent the reporting of any information referred to in this subsection or subsection © with respect to any United States account maintained by such institution—

‘‘(i) to attempt to obtain a valid and effective waiver of such law from each holder of such account, and

‘‘(ii) if a waiver described in clause (i) is not obtained from each such holder within a reasonable period of time, to close such account.

Not only are capital flows now to be overseen and controlled by the government and the IRS, but holders of foreign accounts can kiss any semblance of privacy goodbye:

‘‘© INFORMATION REQUIRED TO BE REPORTED ON UNITED STATES ACCOUNTS.—

‘‘(1) IN GENERAL.—The agreement described in subsection ( shall require the foreign financial institution to report the following with respect to each United States account maintained by such institution:

‘‘(A) The name, address, and TIN of each account holder which is a specified United States person and, in the case of any account holder which is a United States owned foreign entity, the name, address, and TIN of each substantial United States owner of such entity.

‘‘( The account number.

‘‘© The account balance or value (determined at such time and in such manner as the Secretary may provide).

‘‘(D) Except to the extent provided by the Secretary, the gross receipts and gross withdrawals or payments from the account (determined for such period and in such manner as the Secretary may provide).

The only exemption to the rule? If you hold the meager sum of $50,000 or less in foreign accounts.

‘‘( EXCEPTION FOR CERTAIN ACCOUNTS HELD BY INDIVIDUALS.—Unless the foreign financial institution elects to not have this subparagraph apply, such term shall not include any depository account maintained by such financial institution if—

‘‘(i) each holder of such account is a natural person,and

‘‘(ii) with respect to each holder of such account, the aggregate value of all depository accounts held (in whole or in part) by such holder and maintained by the same financial institution which maintains such account does not exceed $50,000.

And, while we are on the topic of definitions, here is how "financial account" is defined by the US:

‘‘(2) FINANCIAL ACCOUNT.—Except as otherwise provided by the Secretary, the term ‘financial account’ means, with respect to any financial institution—

‘‘(A) any depository account maintained by such financial institution,

‘‘( any custodial account maintained by such financial institution, and

‘‘© any equity or debt interest in such financial institution (other than interests which are regularly traded on an established securities market). Any equity or debt interest which constitutes a financial account under subparagraph © with respect to any financial institution shall be treated for purposes of this section as maintained by such financial institution.

In case you find you do not like to be subject to capital controls, you are now deemed a "Recalcitrant Account Holder."

‘‘(6) RECALCITRANT ACCOUNT HOLDER.—The term ‘recalcitrant account holder’ means any account holder which—

‘‘(A) fails to comply with reasonable requests for the information referred to in subsection ((1)(A) or ©(1)(A),

or ‘‘( fails to provide a waiver described in subsection ((1)(F) upon request.

But guess what - if you are a foreign Central Bank, or if the Secretary determined that you are "a low risk for tax evasion" (unlike the Secretary himself) you still can do whatever the hell you want:

‘‘(f) EXCEPTION FOR CERTAIN PAYMENTS.—Subsection (a) shall not apply to any payment to the extent that the beneficial owner

of such payment is—

‘‘(1) any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,

‘‘(2) any international organization or any wholly owned agency or instrumentality thereof,

‘‘(3) any foreign central bank of issue, or

‘‘(4) any other class of persons identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion.

One thing we are confused about is whether this law is a preamble, or already incorporates, the flow of non-cash assets, such as commodities, and, thus, gold. If an account transfers, via physical or paper delivery, gold from a domestic account to a foreign one, we are not sure if the language deems this a 30% taxable transaction, although preliminary discussions with lawyers indicates this is likely the case.

And so the noose on capital mobility tightens, as very soon the only option US citizens have when it comes to investing their money, will be in government mandated retirement annuities, which will likely be the next step in the capital control escalation, which will culminate with every single free dollar required to be reinvested into the US, likely in the form of purchasing US Treasury emissions such as Treasuries, TIPS and other worthless pieces of paper.

Congratulations bankrupt America - you are now one step closer to a thoroughly non-free market.

[Bull Dog]

Sorry Belize does not recognize the US.

[BanG]

Sorry Belize does not recognize the US.

Ummm, Yes it does, Caye bank in Belize requires full disclosure of funds being deposited ex. Where did they come from? Is this income? Etc. I called Caye Bank to see what opening an account required.

[Wino]

This will only work in countries that recognize the U.S. authority ,and at the rate that our popularity is growing with our current administration, the number of recognizung countries could get smaller.

[Hfeliu]

Sorry Belize does not recognize the US.

Nice try, but Belize is on the list, top of the list is the Cayman islands, then Panama, and Belize. the U.S. will eventually get to Belize, on it's way to controling every single penny a U.S. citizen earns, just to insure Uncle Sam get's his cut

[kawint]

Yesiree, this is another fine piece of crap that the Demoncrats have come up with. Expatriation is sure looking better and better, and like it or not, that is the ONLY way you can avoid this, as well as other Orwellian laws they have in mind for us.

[TheUnspoken]

You know what is sad, is America is the only place were it will take YEARS before you see civil uprising against BS like this. We complain about stuff on message boards and verbally to our friends and family. But something like Egypt would take A LONG time to happen here.

The leaders know that and simply don't care about the people in this country, we are here to pay off the debt they are now responsible for.

[hammy]

great info muleman +1 from me. Good research

[cjdavid]

I am an American mutt! I am soon to turn 50 years old. I, like alot of Americans have only known freedom and sure as heck do not like loosing it. I, like many Americans would not tolerate my freedoms being taken away. Cage an American and we will try anything to get back to freedom no matter what it takes including the ultimate sacrifice for the freedom of others. This nation was not set free by "peaceful means" Heaven help thoughs who try to enslave us as our government is trying to do. I have to believe that Americans are waking up, and it could be a huge problem for the government if they continue to push in the wrong direction. Amazing how this all resembles what used to be fiction. I am concerned that one day there will be extreme civil unrest. But then again....Revelation does speak of all these things coming to be.

Alot of people are concerned for Isreal. Rightfully so. For those of us who have read and believe the end of the Bible, I feel sorry for those who oppose Isreal.

That which is born into me, will continue to strive and fight for what is right...GOD given freedom.

[muleman]

I hate to have bad news, but I think people should be informed .

I wonder what Adam's thoughts are on this, maybe we will here from him later.

[scott0916]

You know what is sad, is America is the only place were it will take YEARS before you see civil uprising against BS like this. We complain about stuff on message boards and verbally to our friends and family. But something like Egypt would take A LONG time to happen here.

The leaders know that and simply don't care about the people in this country, we are here to pay off the debt they are now responsible for.

It would never happen in this country...... people have become dependent on the gov. to spoon feed them. the days of being proud to be self sufficient are all but gone. it seems everyone wants something for nothing and dont want to put in the time of effort to get ahead, they seem to want it handed to them. case in point, THE DINAR, from all i have read, a lot of people have gotten into this to get rich quick. then ***** that it isnt happening soon enough. just seems that the country has been infected with the welfare mentality.

just my 2 cents

[muleman]

It would never happen in this country...... people have become dependent on the gov. to spoon feed them. the days of being proud to be self sufficient are all but gone. it seems everyone wants something for nothing and dont want to put in the time of effort to get ahead, they seem to want it handed to them. case in point, THE DINAR, from all i have read, a lot of people have gotten into this to get rich quick. then ***** that it isnt happening soon enough. just seems that the country has been infected with the welfare mentality.

just my 2 cents

Man you hit the nail on the head about the welfare mentality.

My wife works at one of the Wal Mart stores as a receiver of all the food that comes in of the trucks to the store.

She gets really busy around the first of evey month. I asked her, "Why are you always so busy around the first of every month?"

She said," Wal Mart is getting ready for the people on welfare to come in and spend their welfare checks .

Wow, I was shocked ! Look out if that drys up someday , and it could happen !

[PhillyDinar]

Ummm, Yes it does, Caye bank in Belize requires full disclosure of funds being deposited ex. Where did they come from? Is this income? Etc. I called Caye Bank to see what opening an account required.

then use another bank

[Yogi-Donnie]

I, like alot of Americans have only known freedom and sure as heck do not like loosing it. I, like many Americans would not tolerate my freedoms being taken away. Cage an American and we will try anything to get back to freedom no matter what it takes including the ultimate sacrifice for the freedom of others. This nation was not set free by "peaceful means" Heaven help thoughs who try to enslave us as our government is trying to do. I have to believe that Americans are waking up, and it could be a huge problem for the government if they continue to push in the wrong direction. Amazing how this all resembles what used to be fiction. I am concerned that one day there will be extreme civil unrest. But then again....Revelation does speak of all these things coming to be.

I wish it where so, but outlook is bleak. Most "Americans" don't care about loosing freedom and don't even notice as their freedoms are taken away. The American Masses are concerned more with who won the Super Bowl and which celebrity **** is getting away with a crime this week. Plus our wonderful elected leaders just want to take care of them, the American Masses, from cradle to grave. Which deadbeat wouldn't want that? Cage most of the Masses and they will be happy your paying their way. BUT Im a pessimist, sorry. I hope I'm wrong, but outlook is bleak.

Edited February 12, 2011 by Yogi-Donnie

[FishmanTx]

Yesiree, this is another fine piece of crap that the Demoncrats have come up with. Expatriation is sure looking better and better, and like it or not, that is the ONLY way you can avoid this, as well as other Orwellian laws they have in mind for us.

Got news.

Unfortunately, ex-patriating doesn't relieve you of a further 10 year tax liability even AFTER you've renounced and taken citizenship somewhere else.

Read the fine print in your citizenship clause. LOL! Don't pay them and try to set foot back in the country.....................

Neil

[The Original Spike]

Mmmmmmm.... I forgot what the site was but there has been a lot of underhanded stuff going on as far as legislation goes. I understand where we might be forced to fight for our freedom sooner than you think. I understand why people are setting up their 'special' hunting camps. I worked for an airline in Dallas on the ground for years, ran into a fella on the tram that works for a 'chipping' company. I was joking about our CEO contracting their company about chipping all the employees, he looked me straight in the eye and said don't laugh, soon all people working in security labeled areas will have to be chipped to be able to work in a security sensitive area. I told him good luck with that, I guess I'll be tweaking the resume. Then I found out later that Obama, pushed by Kisinger has signed legislation to have us all chipped by 2016. Kind of crazy, but I'm sure you can Google it. We are all considered assets and all have a million dollar insurance policy taken out against our birthcertificates that in turn are used as collateral against American national debt, mostly held by the Chinese. Crazy stuff I know, but they will have to kill me before chipping me. I'm not really a conspiracy type of person, but there is a lot of crazy stuff going on behind the scenes. One of my buddies just got back from Spain and said he saw the chip already being used a lot at clubs over there. They have a VIP line for them. We are already utilizing the technology for workers in many of our Nuclear power plants over here. Scary stuff....

[The Original Spike]

Mmmmmmm.... I forgot what the site was but there has been a lot of underhanded stuff going on as far as legislation goes. I understand where we might be forced to fight for our freedom sooner than you think. I understand why people are setting up their 'special' hunting camps. I worked for an airline in Dallas on the ground for years, ran into a fella on the tram that works for a 'chipping' company. I was joking about our CEO contracting their company about chipping all the employees, he looked me straight in the eye and said don't laugh, soon all people working in security labeled areas will have to be chipped to be able to work in a security sensitive area. I told him good luck with that, I guess I'll be tweaking the resume. Then I found out later that Obama, pushed by Kisinger has signed legislation to have us all chipped by 2016. Kind of crazy, but I'm sure you can Google it. We are all considered assets and all have a million dollar insurance policy taken out against our birthcertificates that in turn are used as collateral against American national debt, mostly held by the Chinese. Crazy stuff I know, but they will have to kill me before chipping me. I'm not really a conspiracy type of person, but there is a lot of crazy stuff going on behind the scenes. One of my buddies just got back from Spain and said he saw the chip already being used a lot at clubs over there. They have a VIP line for them. We are already utilizing the technology for workers in many of our Nuclear power plants over here. Scary stuff....

I know you can look up the chip info on YouTube, it has excerpts from either 20/20 or 60 minutes on it. Anyway...

[KCT]

I know you can look up the chip info on YouTube, it has excerpts from either 20/20 or 60 minutes on it. Anyway...

Wow! I had never thought about the chip being used on us!(My dogs are chipped, which I thought was a helpful thing!) I will do some more research on it! I am not prone to enjoy the conspiracy theories either, but I was shocked to find out, while doing research awhile back, that our birth certificates actually say "bank note" on them. Like you were suggesting , the Amercan taxpayer is actually human collateral.

Thanks for the post!

[Kinnie88]

Learn more about offshore banking at http://www.panamalaw.org/

[hardmoney1]

Got news.

Unfortunately, ex-patriating doesn't relieve you of a further 10 year tax liability even AFTER you've renounced and taken citizenship somewhere else.

Read the fine print in your citizenship clause. LOL! Don't pay them and try to set foot back in the country.....................

Neil

Try Dual Citizenship. I do not think ex-patriating is the answer. You want entry/exit permission in two continents!!

Stay in America, if things get too hot & heavy with civil unrest/totalitarianism/taxation then "bug out" to your other country -let things cool down, etc.

"Who is John Gault?"

[Bull Dog]

Hopefully with less than two years left in office, we can find someone new with fresh blood and fresh ideas who can put an end to this. I guess we need to take something like this to the public, newspapers, radio stations, Television. Start some sort of campain to get the word out? I guess what I am saying, it has to start somewhere?????? Why not here???? I for one might just clip this article and send it to Channel 7 or 5 or 4 or 13 or all of them??????

[Bull Dog]

Just went through your e-mails and found no sign of Belize in the records. I did not see Panama either. So for right now we are safe, let's hope Big Brother stays away from these areas as I sure they won't. Let's hope Belize tells the US to stuff it as they are not needed or wanted in their country.

[Slaydadea]

Hopefully with less than two years left in office, we can find someone new with fresh blood and fresh ideas who can put an end to this. I guess we need to take something like this to the public, newspapers, radio stations, Television. Start some sort of campain to get the word out? I guess what I am saying, it has to start somewhere?????? Why not here???? I for one might just clip this article and send it to Channel 7 or 5 or 4 or 13 or all of them??????

Ron Paul would be my choice.

[Windanna]

If you don't want to be "chipped" watch out for flu shots & immunizations....always read all find print from now on (if its even to be found there) but they have microscopic processors nano technology....capable of being injected as a liquid.

Just sayin.

[MSgt of Marines]

At least this would help tremendously to put Serial Killers,Rapists and Child molestors out of business... Just saying