Current Shamrock Missive

From the Publisher's Desk
May 2010

"The Declaration of Independence, the words that launched our nation -- 1,300 words. The Bible, the word of God -- 773,000 words. The Tax Code, the words of politicians -- 7,000,000 words -- and growing!"
- Steve Forbes


How much are your taxes going up under new legislation??

The Over the many years I've been writing PTBuzz, I've never witnessed such a massive increase in nasty legislation as proposed and signed into law as seen recently.

Case in point: The Hiring Incentives to Restore Employment Act (H.R. 2847), aka HIRE!

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.

H.R. 2847 has inserted a new chapter, CHAPTER 4 into the Internal Revenue Code of 1986, i.e. "TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS"

In a nutshell this provision has basically and plainly speaking placed Americans with assets offshore as being screwed! For American's and American residents with offshore assets in excess of USD50,000 or the equivalent, you're either going to have to pay a large tax on your funds, report those funds or face having your accounts closed down, funds confiscated and face possible criminal investigation by the authorities.

"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." - Judge Learned Hand

Maybe it's time to arrange your affairs in such a manner as to legally pay the least amount of taxes due.

A second passport might avail you of such an opportunity. If you're a serious player, email us by placing "2ndPP" in your subject heading.

To download a PDF copy of HIRE, i.e H.R. 2847 CLICK HERE.

Our question for you is, what are you going to do about it?

See you next issue

Shamrock

"The people never give up their liberties but under some delusion."
- Edmund Burke, 1784

To access our past missives just click here.

Click here to subscribe to our FREE privacy newsletter, PTBuzz.