Ladies and Gentlemen, I just fell down a rabbit hole, or rather over a cliff so I will try to keep posting as I research something so damning for the feds and so explanatory of the insanity to Washington, D.C. that you will be SCREAMING and MARCHING for an INTERVENTION!
In the meantime, I posted earlier about how Barack Obama was going to increase the IRS’ budget to chase tax evaders and close loop holes for companies and individuals with operations or bank accounts overseas.
So, are American companies not screaming about this or is the media blacking out any American response to the grip tightening of this fascist administration?
The Brits aren’t taking it. At what point is the Washington, D.C. intervention going to happen, and is it going to be foreigners who do the intervention?
British banks and stockbrokers may refuse to take on American clients if new international tax proposals outlined by President Obama are passed.
The decision, which would make it hard for Americans in London to open bank accounts and trade shares, is being discussed by executives at Britain’s banks and brokers who say it could become too expensive to service American clients. The proposals, which were unveiled as part of the president’s first budget, are designed to clamp-down on American tax evaders abroad. However bank bosses say they are being asked to take on the task of collecting American taxes at a cost and legal liability that are inexpedient.
Andy Thompson of Association of Private Client Investment Managers and Stockbrokers (APCIMS) said: “The cost and administration of the US tax regime is causing UK investment firms to consider disinvesting in US shares on behalf of their clients. This is not right and emphasises that the administration of a tax regime on a global scale without any flexibility damages the very economy it is trying to protect.”
One executive at a top UK bank who didn’t want to be named for fear of angering the IRS said: “It’s just about manageable under the current system – and that’s because we’re big. The danger to us is suddenly being hauled over the coals by the IRS for a client that hasn’t paid proper taxes. The audit costs will soar. We’ll have to pay it but I know plenty of smaller players won’t.”
The British Bankers Association (BBA) and APCIMS had a meeting with European counterparts 10 days ago to discuss the crisis. A delegation is set to meet the US Treasury’s Internal Revenue Service on 16th June to demand they drop the reforms.
Ahead of the meeting APCIMS, whose members manage £400bn of Britain’s wealth and employ 25,000 people, has sent a letter to the IRS complaining that the “unfair” proposals represent “no benefit but… significant cost” to its members.
President Obama’s proposals are built on the so-called Qualified Intermediary system which was intended to ensure Americans paid the correct tax wherever they were domiciled. Foreign financial institutions that handle American money have to fill in a US tax form on behalf of the client that has to be audited too. In return, the banks receive a QI seal of approval as a qualified intermediary.
An American Resident telling private British Banks how to do business. Anybody see anything wrong with that? How about we tell the IRS to take a flying leap, and all of these little problems between allies will disappear?
EVERYTHING goes back to the Federal Reserve, the Congress, and the White House. Stay tuned as I dig on something that FDR did back in 1933.
In the meantime, listen to the wise words of this Native American speak directly to my new rabbit hole, and to the “ownership” of Americans by our government.
Seems Obowma is agitating his banking buddies by creating too much paperwork. Any bets on how long it is till the WH does a total turn tail on this one? What? No takers?