Israel comes to an agreement w/ the IRS on FATCA

[PlatinumGuy]

What does investment have to with tax planing?

The real threat to the US economy is that slowly more and more banks will get sick of complying with US rules and just leave. You don't want NYC to move London.

And no one can predict when that may occur. (Or when China may stop buying US debt, which would have a similar impact, CMIIW)

China's bond purchases are nothing compared to the fed and China probably cannot have a long term effect on the US (worst cast interest rates will rise slightly - there's plenty of demand elsewhere) except by colluding with other world powers to shift the global economic center away from the US. Say for example China does to the US what the US did to Iran, with an equal economy size and faster growth rate, we're in deep trouble.

[Menachem613]

What does investment have to with tax planing?

The real threat to the US economy is that slowly more and more banks will get sick of complying with US rules and just leave. You don't want NYC to move London.
China's bond purchases are nothing compared to the fed and China probably cannot have a long term effect on the US (worst cast interest rates will rise slightly - there's plenty of demand elsewhere) except by colluding with other world powers to shift the global economic center away from the US. Say for example China does to the US what the US did to Iran, with an equal economy size and faster growth rate, we're in deep trouble.

Leaving the US won't help them. They will still need to be FATCA compliant.

[henche]

What does investment have to with tax planing?

The real threat to the US economy is that slowly more and more banks will get sick of complying with US rules and just leave. You don't want NYC to move London.

UK has it's own version of fatca, and many other countries are also making them.

As always, you will be left with the tradeoff of political stability vs. less taxes.  Sure, you can hold your money in china, but how comfortable are you that it won't be seized one day.

[Menachem613]

UK has it's own version of fatca, and all the other normal countries are also making them.

As always, you will be left with the tradeoff of political stability vs. less taxes.  Sure, you can hold your money in china, but how comfortable are you that it won't be seized one day.

...and even if you hold your money in china, are you willing to avoid the US securities altogether?

[TimT]

UK has it's own version of fatca, and many other countries are also making them.

As always, you will be left with the tradeoff of political stability vs. less taxes.  Sure, you can hold your money in china, but how comfortable are you that it won't be seized one day.

In London it's a free for all. All the big billionaires from Russia & the Arab countries are dumping their money there.

[henche]

In London it's a free for all. All the big billionaires from Russia & the Arab countries are dumping their money there.

Link?

[MarkS]

[Drago]

I've been seeing articles about ppl renouncing US citizenship.
You know anyone doing this?

[TimT]

I've been seeing articles about ppl renouncing US citizenship.
You know anyone doing this?

their names are published in an attempt to " name & shame " them.

[PlatinumGuy]

Leaving the US won't help them. They will still need to be FATCA compliant.

They only need to comply with FACTA if they have US clients.

UK has it's own version of fatca, and many other countries are also making them.

Only the US has the power to force foreign banks to comply.

Sure, you can hold your money in china, but how comfortable are you that it won't be seized one day.

Technically speaking you cannot hold money in China. At least, it's incredibly difficult. China has currency controls and you cannot just send a wire into China.

As always, you will be left with the tradeoff of political stability vs. less taxes.

Financially the US is not so stable. Switzerland banks for example are much more stable. The issue is citizenship.

[Menachem613]

They only need to comply with FACTA if they have US clients.

Not true.  If they are recieving US source income and want to avoid being withheld upon, they will have to demonstrate that they are FATCA compliant.

[henche]

Financially the US is not so stable. Switzerland banks for example are much more stable. The issue is citizenship.

Politically.