Interesting example of government regulation causing uncertainty in the market

Discussion in 'The Club House' started by roosterjuicer, Jul 17, 2010.

  1. roosterjuicer

    roosterjuicer New Member

    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.
  2. CA357

    CA357 New Member Supporter

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

  3. Bigcountry02

    Bigcountry02 Coffee! If your not shaking, you need another cup Supporter

    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.
  4. doctherock

    doctherock New Member

    VAT sucks, had it in England and it blows.
  5. spittinfire

    spittinfire Active Member Supporter

    We are getting ready to experience the largest tax hike in history. It's time to either fight or get out your checkbook.
  6. nhsuper44

    nhsuper44 New Member

    Vote for Conservatives, and hope for the best !
  7. Bigcountry02

    Bigcountry02 Coffee! If your not shaking, you need another cup Supporter

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

    dunerunner New Member

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