Comments

There are almost no news organizations in the US covering the mess that the US financial laws are causing for non residents. Outside the US, there are occasional stories about this. The comments afterwards are always impressive for the ignorance they demonstrate.

For example: A story was recently published in the Guardian about the financial problems caused by FATCA.

In response to this, comes the following comment:

Cheryl Petty

watch me play the world's tiniest violin...(thumb and forefinger)...sooooo sorry about having to declare your income, sooooo sorry you can't shield or hide your money...boo boo...such a sad story.

This is typical of the comments that appear in response to articles published concerning the tax treatment on US Citizens living outside the US. Cheryl Petty would be so spot on if her comment about people hiding their money was correct. What it really shows is the Ms Petty’s complete ignorance of the issue. There’s an underlying belief that the complaints are regarding rich Americans being forced to declare money that they are hiding outside the US. The seeds of this belief were planted by the comments made by President Obama and his officials when Fatca was passed. Their language indicated that they were trying to catch tax cheats. So, anyone complaining must be a tax-cheat, right? Despite actively searching, and writing to congress, I have found NO indication that the politicians understand the problem.

Here’s the reality. A US citizen living outside the US is bound by the tax laws of the country he is living in. He pays taxes in that country. He receives services in that country. He saves his money in that country, in investment accounts that comply with that country’s financial regulations. He isn’t doing this to “hide” his money; he is doing it because that is where he lives and wants to plan for his future. He is saving locally because US financial institutions will not accept investments from non residents. In most cases he is paying a higher rate of taxes than he would be if he were a US resident.

Every developed country besides the US recognizes this, and does not expect non residents to file a tax return. The US requires filing every year, but has set up the system to make filing almost impossible for a non resident.

 
It’s hard to blame people like Cheryl Petty for their ignorance. Despite the fact that these laws are causing a nightmare for over 7 million US citizens, there is no reporting on the issue in the US media. No politicians are even willing to acknowledge the mess that exists. Of course, if Cheryl Petty read the story she might have been in a better position to comment.