Steelplate
Bluesman
There much more to the story as usual. Here's the full text of HR 2847:
http://www.zerohedge.com/sites/default/files/HIRE act.pdf
Any funds transferred from the US to any overseas account are subject to a new tax equal to 30 percent of the total amount of the payment unless the payment is sent to a foreign bank that has agreed to report all American-owned accounts automatically and electronically to the US government.
The first half of the bill contains incentives to invest and hire domestically. The second half starting at TITLE V on page 27 contains unprecedented capital controls and seizures of US assets held overseas in foreign financial institutions. The bill essentially taxes 30% of all US-sourced capital outflows lol. Not only that, if a foreign bank holds a US owned account, said foreign bank must by order of US federal law comply to disclose full details and Taxpayer Identification Number of all US account holders doing business with said foreign bank or else close the accounts. All transfers between US sources and said foreign bank will also be subject to 30% withholding.
So starting Jan 1st 2013, foreign banks across the globe are going to have to choose between:
a) complying with the US' coercive and impractical disclosure requirements while bearing all the expense of acting essentially as a foreign branch of the IRS;
b) forfeiting 30% of their US asset deposits;
c) take a catastrophic hit and stop investing in US assets altogether; or
d) call the US' bluff and challenge the authority of the US to unilaterally supersede international law in financially regulating and taxing the banking industries of foreign sovereign nations.
This should get very interesting; Switzerland is already at odds with the US over this and they will not be the only ones. Can you imagine Russia not taking exception the US' liquidation of Russian banks? For the past 40 years we've used our military hegemony to impose USD demand upon the rest of the world, now we'll need it in order to seize those USDs from the rest of the world.
Yeah, fuck...why should American Companies pay taxes on ALL of their income... they should be allowed to evade taxation by any means necessary, right?