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roosterjuicer 07-17-2010 01:36 PM

Interesting example of government regulation causing uncertainty in the market
As many of you know, i am a 3rd year law student and I currently work as a law clerk at a firm.

I was working on a tax case the other day. The client was in the business of raising money through foreign investors to invest mostly in foreign markets. Within the past couple years he has basically had no luck getting investors despite his past successes.

Under new regulations every time he raised some money, he had to send the investor a 1099 and other forms. There is also a great deal of uncertainty on what will happen next with tax regulations and none of them even want to be on record with the feds, especially considering the "crackdown" on foreign banks with US money in them. This scared the heck out his investors and it has gotten to the point that nobody really wants to invest because they dont want to be involved in a way with the US tax system.

His tax plan is pretty extreme. His tax plan is basically now to renounce his US citizenship, move to Panama, become a Panamanian citizen, and keep his money in the cayman islands. He would continue living in the US for most of the year. To move all his money out of the US, even being not a US citizen, he has to pay a 30% tax! (keep in mind that he has already paid 35-40% on that money when he first earned it) Yet he is desperate enough for investors that he is willing to go this far to be able to stay in business.

This is a perfect example of overregulation causing uncertainty and that causing a very negative effect on people's willingness to invest or even have their money involved in the US. The question of, "what will happen next" is literally scaring tax revenue out of this country, not to mention jobs.

CA357 07-17-2010 03:49 PM

Yes, taxes are going up under Maobama and will continue to be onerous. There will also be a VAT some time soon as well.

Bigcountry02 07-18-2010 04:41 AM

Add to the VAT, some Cap & Trade (I hope not), New Mexico Liberals already said "YES". They hate facts, just appeasement!

Now that Financial Reform is passed (Not officially signed), what was hidden in that 2300 page nightmare.

doctherock 07-18-2010 05:00 AM

VAT sucks, had it in England and it blows.

spittinfire 07-18-2010 09:42 AM

We are getting ready to experience the largest tax hike in history. It's time to either fight or get out your checkbook.

nhsuper44 07-18-2010 11:47 AM

Vote for Conservatives, and hope for the best !

Bigcountry02 07-18-2010 07:09 PM


Originally Posted by nhsuper44 (Post 316732)
Vote for Conservatives, and hope for the best !

Agree! The democratic stick will try everything in the book to cheap the system.

dunerunner 07-18-2010 07:17 PM

Bring on the barter system. No VAT, State Sales Tax. You make it, grow it, trade it!!

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