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Re: The Expat Tax Is Law - The Door Is Now Closed!

At 11:20 PM 9/17/96, Duncan Frissell wrote:
>At 05:11 AM 9/17/96 -0700, Tim May wrote:
>>It makes me want to just put my stock certificates in my luggage and just
>>drive on down to Mexico and cross the border (no border checks) and go
>>from there to some safer haven.
>>(However, I imagine the Feds can effectively block sales of my stock--the
>>stock is still formally only an accounting entry, as stock certificates
>>are not "bearer instruments." I could probably relocate to a foreign haven
>>and sell the assets before the IRS would even notice...unless they
>>computerize. I suspect this is coming.)
>But since a 10-year old (who is willing to break the law) can defeat their
>expat tax, what difference does it make.  All one has to do is cash out,
>transfer all funds overseas, follow them, and renounce.  Move the funds
>around a little.  It's not tax fraud (no false documents have been uttered
>-- indeed no documents at all).  Just take your marbles and go home.

While I've always admired your "in-your-face" approach to tax matters, I
remain skeptical.

What I expect will happen is some variant of "witholding" to be
implemented, where one's "transfer agent" (the holder of one's actual
stock, regardless of who holds the paper certificates) releases only, say,
60% of the proceeds from a sale and holds the remaining 40% for eventual
settlement of taxes.

(Much as one's employer "witholds" a percentage, ranging up to 50% or so,
for Federal, State, and FICA taxes.)

--Tim May

We got computers, we're tapping phone lines, I know that that ain't allowed.
Timothy C. May              | Crypto Anarchy: encryption, digital money,
[email protected]  408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Higher Power: 2^1,257,787-1 | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."