Tax 'hammer' takes toll on Americans abroad

Monday, November 9, 2015
 | 
Chris Woodward (OneNewsNow.com)

FATCA web pageAn American expatriate says a taxation issue in his homeland is having adverse effects on millions like him who simply want to work, save, and live their lives without being hammered by the government.

OneNewsNow reported earlier that the tax burden in the U.S. has become so great that many Americans are leaving both their country and their citizenship behind. Keith Redmond, an American living overseas, says many of those individuals are painted in a bad light by a false narrative.

"There are a number of homeland American journalists who have maligned us in the media, always associating us with wealthy tax cheats living the high-life overseas. That is the furthest from the truth," he tells OneNewsNow. "We are average people, just like in the United States. We're trying to work, save, and just live our lives."

The problem, according to Redmond, involves the Foreign Account Tax Compliance Act (FATCA) – a law that requires financial institutions in other countries to give the IRS information on things like assets and transactions. While FATCA is designed to crack down on tax evaders, Redmonds likens it more to a "sledgehammer trying to catch a few ants."

"Through intergovernmental agreements, banks are being forced with the threat of a 30-percent withholding penalty on any U.S. transactions to identify U.S. citizens and – quote, unquote – 'U.S. persons,'" he describes. "These banks have deemed having U.S. citizens or 'U.S. persons' as clients is not the risk they want to take."

As a result, Redmond says he and many other Americans overseas are seeing their banking and checking accounts closed. In certain countries, he adds, Americans are being denied mortgages or having their mortgages revoked on their homes.

Based on this, Redmond says many Americans overseas feel as though they have no other choice but to rescind their citizenship – and he argues it's not because they don't want to pay taxes.

"The fact is that we do pay taxes, most of the times at higher rates than if we lived in the United States," he continues. "We pay those taxes where we live, because that is where we live, and also for the infrastructure where we live and for the benefits and services that we get where we live – in France, Germany, Singapore, Hong Kong, Australia, etcetera."

According to Redmond, written requests to Congress and the White House have resulted in no reply. "... The majority of us now feel ... betrayed by our U.S. government because we cannot survive," he concludes.

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWS BRIEF

FEATURED PODCAST

VOTE IN OUR POLL

Which high-profile GOP senator would you choose to replace Mitch McConnell?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Hard-line judiciary head wins Iran presidency as turnout low
Opioid abuse up during pandemic, expert tells Utah County
Editor, CEO denied bail in Apple Daily case in Hong Kong
US Catholic bishops OK steps toward possible rebuke of Biden
3 dead, 2 missing after tubers go over North Carolina dam
Gulf coast braces for tropical storm with heavy rain

LATEST FROM THE WEB

Texas Gov. Abbott fulfills promise, vetoes state legislature funding
Major cities ‘refund the police’ as crime skyrockets and businesses backfire
Atlanta's proposed police training facility ignites protests, activists go to city council member’s house
Entire Portland police riot squad resigns after officer charged
School urges students to report peers, teachers for 'microaggressions'

CARTOON OF THE DAY

Cartoon of the Day
NEXT STORY
CA has odd definition of 'freedom' and 'prison'

gender confusionA conservative activist is raising warning flags after California announced plans to allow transgender men, housed in its state prisons, to be housed with women prisoners.