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Keep in mind that most of those expats are wealthy, since poor people can't afford to leave. In fact, millions of poor people risk their lives in the back of trailers or crossing Arizona desert every year, to take advantage of our increasing welfare state. It is the wealthy, who are leaving and they represent lost US investment dollars and subsequently, LOST US JOBS.
When government punishes the wealthy simply for the sin of being wealthy, should we be surprised if the wealthy, who have the wherewithal to live anywhere that they please, choose a more wealth friendly country, as their home?
The problem of which I am talking is a direct result of the position in which the wealthy now find themselves. The wealthy are being systematically backed into a corner by our government. The wealthy are:
* paying double their share of taxes
* facing frivolous lawsuits by the greedy, in ever growing numbers * losing any semblance of privacy in their business transactions * having their business dealings saddled with onerous Patriot Act and Sarbanes-Oxley Act requirements that often take so much time and cost so much money that otherwise profitable deals end up costing money, if they happen at all
* having their property confiscated (forfeited*) by the government, at an ever increasing rate
These laws are clearly aimed at punishing anyone who has the audacity to be rich and leave with their wealth, intact. If the IRS and lawmakers are not very seriously concerned about the number of wealthy taxpayers who are leaving IRS jurisdiction, then what reason would they have to pass such autocratic laws? Think about it... Actions speak louder than words. If hundreds of thousands of the wealthiest Americans are not now structuring their holdings in preparations for leaving the USA, why did the Senate even considering a bill like the Civil Asset Forfeiture Reform Act of 1999 (S. 1701) that demanded that not only foreign nationals, but US citizens alike, disclose any and all financial information about foreign holdings that the government seeks or lose all future legal right to challenge any property forfeiture in any US court? (Don't take my word for it. Click on the link and read it for yourself.) Actions speak louder than words. Fortunately, that one was narrowly defeated.
I mentioned earlier that I have interviewed many American expats about their reasons for leaving. Until six years ago, the number one reason for leaving, cited by EVERY expat that I talked with, had something to do with the IRS - not the Income Tax, but the IRS. When I asked them to be more specific, they cited IRS abuses and witch hunts, lack of privacy in their financial dealings, hundreds of thousands of pages of incomprehensible and contradictory laws from which the IRS picks and chooses and let us not forget, the Health Insurance Portability & Accountability Act of 1996 and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, which are nothing more than covert tools of the IRS.
One of the most absurd statements that I have heard, in response to the above facts is, "So what? Let'em leave." In fact, that attitude is actually contributing to the problem and making it much worse. You see, as a result of one of the laws that I will discuss below, designed to punish the wealthy for leaving, the wealthy are now taking ALL of their investment capital with them, when they leave and therein, lies the true problem. When the wealthy leave, it creates severe problems for the rest of us, since we are the ones who have to make up the difference in taxes. What really surprises me is that even a few well-meaning conservatives, who realize that the real problem is Native Capital Flight, have fallen into the greed trap, right along with the liberals.
But, just like the Health Insurance Portability Act of 1996 (26 USC 877(a)(1)), that seeks to tax the income of expatriate Americans for ten years after they renounce citizenship and the Immigration and Nationality Act (INA) of 1996, (8 USC 1182(a)(10)(E)), that prohibits these so-called taxpatriates from ever returning to the US for any reason, both of which are individually responsible for the exodus of BILLIONS of DOLLARS of investment capital
History has shown repeatedly, that as countries make it more difficult for investors to legally transfer money offshore, more and more wealthy law abiding citizens, justly fearing that the day is fast approaching when they will become economic prisoners of their own government,
The national sales tax would be paid at the cash register by all consumers when they purchased goods and services from retail establishments. Sales of all goods and services would be taxed at the same rate. Elimination of all federal income taxation in the United States would end taxation of all capital income, including capital gains. In the short run, the rate of the proposed national sales tax would be roughly 17 percent.
Originally posted by LostNemesis
Thank you for sharing all of this info.
But I disagree that this is THE reason for he economy collapsing --'wealthy' people leaving. To be honest, only the good ones probably left. The worst stayed, probably knowing that bail-outs were on the way.
Though, I think government corruption and irresponsibility had a lot to do with it, too. If it was not for government needing to be so BIG, the sheer amount of taxes needing to be collected would diminish to a more manageable amount.
I hope those who can afford to, do leave. Tough times ahead.
(the money they worked so hard for their whole life is losing value immensely)
I just wish I could join them.
[edit on 21-2-2009 by LostNemesis]