-Anthony J. Hilder
On March 18th 2010 Barack Hussein Obama signed the Hiring Incentives to Restore Employment Act, H.R. 2847, into law; commonly known as the so called HIRE act.
Since then the draconian provisions signed into law in title five of that act have been mostly ignored. This is because for many years there have been rumors about an “exit tax”, that is to say, an automatic tax penalty applied to anybody wishing to get their money out of the United States. Over the last decade many such bills have been proposed but not passed into law. The latest round of rumors went around Cuenca’s ex-pat community in late 2010 causing at least two people to wire in large sums of money before the end of the year.
***Update 17 OCT 2011: the implementation deadlines have been delayed. See comment by “Tax Payer”***
The HIRE act’s most devastating provisions are set to kick in on January 1st of 2013 after which all wire transfers over $50,000 originating from U.S. banks with an offshore destination will be subject to an automatic 30% withholding tax. The tax will be automatically deducted by the sending bank unless the receiving bank is in compliance with the Internal Revenue Service’s reporting requirements.
At the end of this article there is a link to a PDF file of the document who’s fifth section describes the basis of a worldwide monetary control grid eerily similar to that mentioned in the Bible in the 13th chapter of the book of Revelation.
This HIRE act legislation is one of the captain’s last desperate attempts to suck down one more breath of air before he goes down with the ship.
The good news is you still have time to get into a lifeboat if you start making preparations now.
The wealth that you have accumulated from a lifetime of work will continue to remain in jeopardy if you don’t start making radical changes immediately.
Some people feel like relocating their wealth and their family overseas would be un-American but nothing could be further from reality. America is no longer a country or a land mass but rather an idea. Today America only exists in the memories of the senor citizens who are fortunate enough to have seen it. I lived in the United States for the first 29 years of my life and can honestly say that I have never seen America; what I did witness was a continual downhill slide towards moral and financial bankruptcy.
Below is a link to the entire hire act legislation
(skip to page 27 for the beginning of title five)
http://www.gpo.gov/fdsys/pkg/BILLS-111hr2847enr/pdf/BILLS-111hr2847enr.pdf
(right-click and “save as” to download)
I tried to read that trash (bill). I have no idea what it says. That is part of the problems with most of the bills in congress. I doubt if the congressmen themself can understand it which is why they have all the lawyer interns.
It is also the reason I want to move out of the USA.
Dear Michael: I was strongly considering requesting your assistance in finding an older colonial home for purchase, when I am in Cuenca in October and November.
Then I read your statements on HB 2847. Your interpretation seems skewed from what I read in the final bill itself. Mind you I am a retired real estate lawyer. But it seems to me all the 30% requirement does is to have our financial institutions withhold 30% until and unless we disclose who is moving the money around. That provision is simply to prevent illicit movement of funds offshore as well as hidden assets and tax fraud. I guess I’m in favor of preventing tax fraud as well as maybe money laundering that this provision seeks to prevent.
Does that mean you couldn’t represent my interests in a real estate transaction? Thanks much.
You are right that the way the bill reads they are putting many mechanisms into place to “withhold” money going over seas. I’m not a lawyer but I don’t see anything in the bill about returning the money; no mechanism whatsoever to return any portion of the money, ever.
The reason for this becomes crystal clear when you look at other exit tax bills which have been proposed over the last decade that would have enacted an exit tax rather than an exit withholding. One of those proposed laws was passed by Congress and then signed into law by George W. Bush on June 17th of 2008. The “Heroes Earnings Assistance and Relief Tax Act of 2008″ specifies a 30% exit tax on all people who give up their U.S. citizenship who have over $600,000 in total assets. They also call it a “Withholding Tax” even though the person in question has no way to get any refund since they are no longer a U.S. citizen!
Read Title III of the bill for yourself http://www.opencongress.org/bill/110-h6081/text
There was very little press about the 2008 legislation because it only targeted wealthier people who chose to give up there U.S. citizenship. The 2010 Hire act legislation takes advantage of the precedent set in 2008 and effectively lowers the minimum threshold from $600,000 to $50,000. Since the Hire act applies to U.S. citizens it is a perfect complement to the Heart act.
It would be bad enough if these laws only represented an unconstitutional, guilty until proven innocent, approach to taxation. The evidence suggests that we are witnessing a deliberate and systematic attempt too take as much wealth as possible from as many people as possible.
I don’t believe in anarchy and do understand that some taxes are needed for legitimate government expenditures like building bridges. When a government collects too many taxes a cycle of tyranny begins and tax money is diverted to illegitimate expenses such as bombing bridges.
If you are really against money laundering then maybe you should look into why the IRS was created in 1913 and what Federal Income Tax dollars are used for. Our obligations to God and to our clients come before any obligations that may be placed upon us by organized crime syndicates.
If you are no longer interested in working with us because we are against the Nazification of the global financial system then so be it. On the other hand if you are still considering working with us then we will do our best to advise you on how to maximize your tax liabilities during every step of your property purchase, if you feel that would be in your best interests.
Michael:
This may be a stupid question: it seems like this is saying that it will no longer be possible to wire money into Ecuador without the US Govt taking a 30% cut? If so does this imply that US nationals already living in Ecuador will be reduced to periodically returning to the US in order to bring back wads of cash for living expenses? I’m interested in living in Ecuador, but not sure i’d want to do it on those terms
Thanks!
Ken
It’s not a dumb question at all and thanks for asking it. There is a mistake in the article as I did not mention that the mandatory withholding requirements kick in at $50,000 (Just fixed that today).
I’m not a tax lawyer, but it appears that the 30% is to be withheld only if >$50K is being transferred to a bank that doesn’t provide transparent reporting on accounts held by US persons, on the apparent theory that there just might be a possibility of some tax evasion and/or income concealment going on. (Like THAT’s ever happened… see Banks, Swiss) Since US tax returns already require taxpayers to report foreign accounts, about the only way this would be bothersome would be if said taxpayer was using a dodgy financial institution and perhaps planning to give the IRS two different stories about their accounts. Based on the discussions on page 36, it looks like the withheld money counts as tax paid just like any other withheld tax payments, and at the end of the year you either get a refund or you don’t depending on how your overall liability turns out. Assuming that you were intending to meet your legal obligations, that’s what SHOULD happen. Don’t use dodgy financial institutions, and the withholding won’t occur anyway.
…and it looks like the reporting requirement is being delayed to 2014: http://www.irs.gov/irb/2011-32_IRB/ar09.html
Thanks for bringing to our attention the IRS update from August. Those are all excellent points and the update is much more readable than the original H.I.R.E. act legalese!