Taxation

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6 thoughts on “Taxation

  1. Bob ritter

    What is your position on the FACTA legislation and the continued taxation of non resident US persons? The US government is penalizing US citizens who choose to live in foreign countries by threatening them will huge penalties for not disclosing all their assets even if they have paid taxes on any income they have received. They are hurting the small individual rather than the tax haven cheaters.
    Bob

    1. Senator Post author

      Mr. Bob Ritter,
      Thanks. I do not like it. I understand FACTA is the Foreign Account Tax Compliance Act. It was passed in 2010 and began phasing in on 1/1/2013. It forces foreign banks in foreign lands to report interest earned by US citizens to the IRS. Consequently foreign banks may not want to bother banking with US citizens because of the extra costs.

      Another unintended consequence is that some of our best and brightest citizens who are living abroad are finding it just a whole lot easier to renounce their US citizen and pay their exit tax.

      The co-founder of Facebook, Brazilian born Eduardo Saverin, had gained US citizenship in the 1990s. Then gave it up in 2012 over US taxation.

      1. Bob Ritter

        Would you vote to repeal FACTA and the FPIC legislation(foreign passive investment corp) legislation? A simple solution is to apply the legislation to accounts where the owner of the account is nonresident. We are not dealing with high net worth people using tax havens.
        Bob

  2. Tim

    Dear Mr. Montchalin,

    I would be very interested in your position on tax reform, specifically the FairTax plan. Do you support it? If elected, would you work toward its passage?

    Thank you sincerely,

    Tim Couch
    Registered Libertarian,
    Seal Rock, Oregon

    1. Mike Montchalin Post author

      Tim, Because of you, I have read up on The Fair Tax. What I like about it (the most) is that it taxes consumption rather than production. Well, I also like the fact that it eliminates all of the deductions in the current tax code. Each and every one of those deductions causes a non-market distortion. I haven’t really responded to your question yet because I don’t like to respond until I have thought about something a lot. And although I have heard about The Fair Tax, I have never thought about it much, and I am not done thinking about it yet.

Please let me know what you think.

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