Will the IRS Reschedule the Death of the Dollar?

The world is ready to run.



Nestmann
By Mark Nestmann
13 May 2014

Ever since President Obama signed the ill-conceived “Foreign Account Tax Compliance Act” (FATCA) into law in 2010, I’ve been warning about the death of the dollar.

And I haven’t been alone. Other experts have cautioned about FATCA’s potential to literally shut down the global economy when it goes into full effect July 1, 2014. But the IRS has now postponed that day of reckoning – for at least some – until January 1, 2016.

The idea behind FATCA is simple: Demand that other countries enforce America’s imperialistic tax laws. And to do so by the confiscation of foreign assets, if necessary.

Under the provisions of FATCA, interest, dividends, rents, and similar payments leaving the US will be subject to a 30% withholding tax. The only way that most foreign banks and other foreign companies will be able to avoid this tax is to act as unpaid IRS informants. Non-US individuals investing in the US will be affected, too. If their foreign bank isn’t FATCA-compliant, their US income will get whacked by 30%. It will be possible to recover the tax in some cases, but even so, I can’t think of a better way to scare foreign investors away from the US.

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