FATCA: New Tax Effective July 1, 2014

Recently I spent an hour listening to what I consider some extremely miserable and depressing prognostications, if they materialize, from Porter Stansberry’s latest sales pitch about what he feels will happen when a new law enacted in 2010 goes into effect July 1, 2014: FATCA (Foreign Account Tax Compliance Act) HR2847 passed by Congress and signed into law by President Obama. Apparently, there are some unknown surprises within it.

According to American Citizens Abroad,

FATCA also requires US citizens who have foreign financial assets in excess of $50,000 (higher for bona fide residents overseas – $200,000 for single filers and $400,000 for joint filers – see the IRS website for more details) to report those assets every year on a new Form 8938 to be filed with the 1040 tax return. Instructions for form 8938 were published in December 2011 and can be found on the IRS website. [1]

Any U.S. citizens living abroad should take note of a new form, i.e., Form 8938, which will have to be filed with the annual 1040, starting with the 2014 tax return.

Here’s the official IRS/government spin about FATCA.
http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

One of the things Stansberry mentions is a probable new wealth tax of 10% on EVERYTHING we own, plus nationalizing 401k and pension plans! A while back I had heard the Obama administration realized that USA 401k and pension plans total values were close to the national debt, so that could be a way to save the country from bankruptcy while everyone will have an opportunity to pay his/her fair share to help bail out the country – apparent Socialism in action! Here we go – again – bailing out those who muck up!

Some of the unsettling statistics Stansberry relates include:

One-sixth of U.S. citizens are on food stamps—up 65% since 2008
Forty-three percent of U.S. families are broke
As of January 2014, the actual unemployment rate in the U.S. was 13.1%
The U.S. now has the highest corporate tax rate in the world – we beat Japan
Almost every state in the USA is close to being bankrupt
The Obama administration’s fiscal policy of printing money got us to this point [2,3,4]

Do readers realize that “The Fed is printing $85 billion each and every month to prop up the economy and the big banks”? [4]

Additionally, I’d been hearing about a 10% “haircut” on all USA bank customer accounts similar to the Cyprus-style event ever since that Cyprus bank fiasco [5], which probably was a “trial balloon” to see how it would “fly”. However, Stansberry seems to think something like it may become a reality for the USA starting in July 2014 since the U.S. dollar is in the process of being shunned as the “world reserve currency.” Who would have thought that the Chinese Yuan would be considered to take its place? See what buying all those cheap “Made in China” goods did for US?

Who knows what will happen, especially with the turkeys we have running Washington, DC. Anything, I guess, is possible. So, I’m sharing this with you in order that you may have a leg up just in case you haven’t heard about the new tax, plus IRS law enforcement taking effect July 1, 2014.

Are you prepared?

Notes:

[1] http://americansabroad.org/issues/fatca/
[2] http://dailycaller.com/2010/11/08/obama-defends-fed-decision-to-print-more-dollars-in-face-of-growing-criticism/
[3] http://www.forbes.com/sites/charleskadlec/2012/09/14/the-feds-futile-effort-to-bail-out-obamanomics/
[4] http://usawatchdog.com/weekly-news-wrap-up-11-1-13/
[5] http://www.theguardian.com/world/2013/mar/26/cyprus-banks-closed-prevent-run-deposits

Catherine J Frompovich (website) is a retired natural nutritionist who earned advanced degrees in Nutrition and Holistic Health Sciences, Certification in Orthomolecular Theory and Practice plus Paralegal Studies. Her work has been published in national and airline magazines since the early 1980s. Catherine authored numerous books on health issues along with co-authoring papers and monographs with physicians, nurses, and holistic healthcare professionals. She has been a consumer healthcare researcher 35 years and counting.

Catherine’s latest book, published October 4, 2013, is Vaccination Voodoo, What YOU Don’t Know About Vaccines, available on Amazon.com.

Her 2012 book A Cancer Answer, Holistic BREAST Cancer Management, A Guide to Effective & Non-Toxic Treatments, is available on Amazon.com and as a Kindle eBook.

Two of Catherine’s more recent books on Amazon.com are Our Chemical Lives And The Hijacking Of Our DNA, A Probe Into What’s Probably Making Us Sick (2009) and Lord, How Can I Make It Through Grieving My Loss, An Inspirational Guide Through the Grieving Process (2008).