Willie Sutton was once asked why he robs banks. His response was simple “Because that’s where the money is!”
Given the infinite wisdom of Senator Max Baucus, Representative Charlie Rangel, and Senator Harry Reid we are about to embark on a world wide search for money.
Introduced to Congress on October 27, 2009 and signed into law on March 18, 2010, The Foreign Account Tax Compliance Act (FATCA) is about to impose penalties for noncompliance beginning July 1st, 2014.
This has the distinct smell of a new agency, such as the Energy Department, which will employ thousands and become mired in a governmental process for decades to come.
In search of funds to redeploy in our governmental giveaways and our military adventures, we are requiring foreign financial institutions including banks to identify, report and even collect taxes due on deposits, investments, etc. by US citizens (I am most certain that Vladimir Putin will be overly cooperative with this plan).
This program is the typical program the governmental bureaucrats love to extol. The revenue believed to be raised will be approximately 800 million dollars per year for the US Treasury, not even a weeks worth of TAPER. However, the cost of people, technology, travel expenses, investigative follow-up, etc. etc. etc., all government documented of course, has been estimated to be over 10 billion dollars. Money coming in versus money going out. Another governmental winner right out of the chute. After all we will go to the ends of the earth to find tax revenue whether we know it’s there or not.
Willie Sutton had a better way. He didn’t think the money was there (in the banks) he knew it was there.
Therefore, the common sense thing to do is not to create another bureaucratic agency costing billions of dollars, accomplishing nothing and creating more international intrigue on the ifcome that money is there. The simple answer is to impose a flat tax on all corporations irrespective of where their money is domiciled because that money we know is there.
Apple and others would not have to borrow funds to buy back shares to support their stock prices. They would simply use the cash available after they’ve paid the tax man. This approach would make GE and others start actually paying on what they’ve earned. A novel concept.
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.