Taxation Without Constitution

The perils of overseas tax disclosure: An immigrant’s story

"When Andrew Winfield applied to become a U.S. citizen in 2011, he realized he owed taxes on accounts he had left behind in his native England. So he paid what he believed he owed — $2,800 in back taxes, plus the estimated interest and penalties - and entered the IRS's overseas disclosure program. But when the IRS assessed its penalty in November, Winfield was stunned to learn that it would be $28,000 — 10 times the amount of tax he owed from 2003 to 2010. Because the penalty is based on balances when the exchange rate favored the British pound, paying that amount would mean giving up virtually everything he now has in the accounts." Continue reading →

Continue ReadingThe perils of overseas tax disclosure: An immigrant’s story

Thousands of armed protestors gather at state capitols in pro-assault rifle rallies across the country

"The size of crowds at each location varied - from dozens of people in South Dakota to 2,000 in New York. Large crowds also turned out in Connecticut, Tennessee, Texas, Utah and Washington state. Some demonstrators in Olympia, Wash., Phoenix, Salem, Ore., and Salt Lake City came with holstered handguns or rifles on their backs. At the Kentucky Capitol in Frankfort, attendees gave a special round of applause for 'the ladies that are packin'." Continue reading →

Continue ReadingThousands of armed protestors gather at state capitols in pro-assault rifle rallies across the country

New tax to fund Obamacare could leave American expats in Canada owing Uncle Sam

"Americans will be subject to a new 3.8 per cent tax on investment income that kicks in this year to help pay for the government's new healthcare program, known as Obamacare. Lawyer Kevyn Nightingale, a Toronto-based U.S. tax expert, estimated tens of thousands of Americans living in Canada could be affected by the new tax and find themselves owing money for the first time. The problem, the Globe said, is that unlike rules that allow expats to claim credits for taxes they've paid in the countries where they live, they can't offset this new tax." Continue reading →

Continue ReadingNew tax to fund Obamacare could leave American expats in Canada owing Uncle Sam

Rich Taiwanese give up U.S. passports over FATCA

"A number of Taiwan residents with dual nationalities have chosen to renounce their American citizenship to avoid taxes under FATCA, formally known as Foreign Account Tax Compliance Act, according to local media reports. Ruling Kuomintang Legislator Lai Shyh-bao was quoted as saying that scores of owners of small- and medium-sized enterprises and management executives have begun proceedings to relinquish their U.S. citizenship." Continue reading →

Continue ReadingRich Taiwanese give up U.S. passports over FATCA

Americans Realize Washington Is the Problem, Support Cap to Control Spending

"Here’s some new polling data that seems very encouraging. Americans, by an overwhelming margin, think that Washington is causing serious harm to the nation. That same poll also found strong support for a limit on federal spending, which warms my heart since I’ve been trying to build support for a Swiss-style spending cap in America. I also was shocked to see another poll that found French and Italians were more supportive of spending cuts than Americans." Continue reading →

Continue ReadingAmericans Realize Washington Is the Problem, Support Cap to Control Spending

Americans Used to Tar-and-Feather Tax Collectors

"Last September, Deputy IRS Commissioner Steven Miller promised a Republican-controlled congressional subcommittee that the agency would not enforce the Obamacare mandate. He lied, of course. Despite the fact that the agency is not a legislative body, last December it created 159 pages of Obamacare-related regulations. Since the rules are invasive and deliberately confusing, it’s not surprising that many business owners are looking for ways to minimize their exposure to the IRS’s scrutiny. This has prompted the agency to warn that it will soon issue 'anti-abuse rules' intended to punish business owners who use existing regulatory loopholes found in the law." Continue reading →

Continue ReadingAmericans Used to Tar-and-Feather Tax Collectors

‘We can no longer afford to be American citizens’

"Well, you could always move to Canada, right? Think again. The Foreign Account Tax Compliance Act (FATCA) comes more fully into effect this year, and as The Globe and Mail's Barrie McKenna explains, 'FATCA will force the hand of many Americans in Canada, making them choose between compliance or giving up their U.S. citizenship.' Here's why." Continue reading →

Continue Reading‘We can no longer afford to be American citizens’

White House: Health law requires coverage for workers’ children

"The Affordable Care Act will require employers to offer health insurance that covers their workers’ children too, the Obama administration announced on Monday. Though many companies offer family health insurance today, a narrow selection of them do not, meaning the rule will require significant changes for some in the private sector. Nevertheless, it only applies to full-time employees at companies with more than 50 workers, meaning most small businesses are exempt." Continue reading →

Continue ReadingWhite House: Health law requires coverage for workers’ children

Health care law may mean less hiring in 2013

"Many businesses plan to bring on more part-time workers next year, trim the hours of full-time employees or curtail hiring because of the new health care law, human resource firms say. The so-called employer mandate to offer health coverage doesn't take effect until Jan. 1, 2014. But to determine whether employees work enough hours on average to receive benefits, employers must track their schedules for three to 12 months prior to 2014 — meaning many are restructuring payrolls now or will do so early next year. About a quarter of businesses surveyed by consulting firm Mercer don't offer health coverage to employees who work at least 30 hours a week." Continue reading →

Continue ReadingHealth care law may mean less hiring in 2013

Hollywood Gets Tax Break Extension, While Payroll Extension Break Ended

"Section 317 of the freshly approved legislation includes an extension for 'special expensing rules for certain film and television productions.' The fiscal cliff deal extends the tax incentives through 2013--even as payroll taxes rise on ordinary Americans. The original tax incentive applied to productions costing less than $15 million to make ($20 million in low-income areas). The 2008 extension applies to all films, up to a deduction of $15 million (or $20 million in low-income areas). The incentive is especially generous to television series; it applies to each TV episode." Continue reading →

Continue ReadingHollywood Gets Tax Break Extension, While Payroll Extension Break Ended