— Citizenship Lawyer (@ExpatriationLaw) January 6, 2014
The consequence of FATCA is that Americans abroad are either renouncing U.S. citizenship or returning to the U.S. This is NOT good for American companies in world markets. Although it makes no sense, the U.S. destruction of U.S. citizenship abroad continues.
The article includes:
Americans abroad are asking: “Is the chaos due to the law of unintended consequences” or is it really the intended consequences of FATCA to bring Americans home (along with their “hidden assets”). Even before FATCA, Americans and American businesses have always been at a competitive disadvantage because the United States is the only country in the world (except for Eritrea) that collects taxes based on citizenship rather than residency. Americans pay taxes both to the host country where they live and work and to the United States.
There is likely to be 7.5 million Americans around the world who are less enthusiastic about their home country policies, which could impact their implicit role as “roving” ambassadors for the United States.
The IRS should pay attention. FATCA implementation seems to be the perfect example of “throwing out the baby with the bathwater.”
A cynic might interpret the message coming from Washington to Americans living and thriving outside of the United States, as follows: “If you like your life and job outside of the United States, you can keep your life and job outside of the United States.” Period.