by thedreamer -

The Fatcats Discuss FATCA

The alarm rings. 7 AM. The room is still dark. I inch out of bed and make a morning smoothie. I don’t know what to expect, where I’m going today.

I take the metro to the other side of the river. I know I’ve found my destination by the small gathering of Americans outside. Once we’ve introduced ourselves (and realize that the door is open), we proceeded into the building.

I look up as we enter to see three clotheslines hanging above, all draped with red and pink clothing.

“Someone likes to wear a lot of red,” I said. I’m told it has a special significance.

We sign in and enter a room with a long table, crowded with chairs. I hang up my coat and hat by the door.

The room is filled with Americans. Americans living in Paris and elsewhere who have come to learn more about the issue we all have in common.

Senator Lee and lawyer James Bopp are introduced.

Why were we here? What is so important?

Mmm Bopp (sorry, I couldn't help myself)
Mmm Bopp (sorry, I couldn’t help myself)

You may not be familiar with the plight of the expat, but once you leave the US, you certainly start learning quickly. Did you know that if you reside outside of the US, as a citizen you still must file your tax returns? Even if you didn’t make a dime on US soil. Even if you haven’t set foot there in years. Even if you have never set foot inside the US in your life. If you are a proud holder of a US passport and citizenship – you file. Not only that, but if you earn over a certain amount you will owe taxes on it. Sure, those double taxation treaties are handy – up to a point, and that point is around $99,000. Which is about 80,000€ I believe. Less, in pounds.

Not only that, but you must declare any bank accounts that you have if you hold over $10,000 (all together) in them, plus any assets. I’m sure there’s even more to it that I can’t remember at the moment. But if you don’t file those papers, you could be in for a fine of up to 50% of the highest value in your account.

This is why were here here. Senator Lee shared his thoughts on FATCA (the Foreign Account Tax Compliance Act) and the FBAR form (which Mr. Bopp called the FUBAR form), and how they were planning on fighting it for us. The whole thing is just plain unconstitutional. Our own government is picking on a minority of people who don’t even live in the country (so it’s hard for us to fight back, I suppose), and costing not only us but the world more money than they even stand to take in. Americans are being denied bank accounts because of what the US government is demanding from banks. Accounts are being closed. Companies are being urged not to hire Americans. Lives are being destroyed.

I know not many people in America will care, because it’s not happening to them, and perhaps you’ll think it’s in the name of security, or catching tax cheats. OK, so the government is throwing a net into the ocean with the goal of catching one kind of fish, but in that dragnet they are also dragging in many, many other species… animals that they don’t care about, and toss aside. Maybe save them, you can get a little money from them too. Doesn’t matter, we caught our fish, right? (yeah, think about that when you eat fish – it happens).

But what’s next? If they are allowed to get away with destroying the lives of thousands, if not millions, of Americans living abroad… what’s to stop them from getting greedier and applying the same measures to everyone at home? Soon they will also know about where all of your money is, and how much you have. They’ll know everything about you. Although, they probably already do…. but then add to that the cruel and unusual punishment of excessive fines and fees for not “confessing” everything they “need” to know about you.

FATCA, FBAR, and the citizenship-based income tax are all horrible, horrible consequences of being an American who chooses to live in another part of the world. Many Americans are being forced to make the difficult decision to give up their citizenship, for no other reason but that the government is not allowing them to keep what is rightfully theirs – their money, and a reasonable expectation of privacy. FATCA violates not just one of our constitutional rights, but at least 3.

Amendment IV

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Amendment V

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

Amendment VIII

Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

 

The French people I have talked to about these issues think it is absolutely insane, and they can’t conceive of the notion that a government would be so invasive and greedy, to tax and fine you even if you have never set foot on their soil. Why are we OK with this?

To top it off, bills like this get passed as add-ons to other long, unrelated bills. The Senator told us one bill got passed in the following manner: 1AM on New Year’s Day he received an email with a 150 page attachment of a bill he was to vote on. While printing out page 13, 6 minutes later, they were asked to vote on it. This is how our bills get passed. They don’t even get read. Something is wrong with the way our country is run. Bills aren’t being passed to help you, or me. Our government doesn’t care about us. Last year I earned about $15,000. And if you know what rent is like these days in large cities, you know that over half of what I earned went to rent. The rest to food and debt, basically. And yet, when the accountant tallied up my tax return, I owed the government a whopping $1800. I cried. It was everything I had managed to save. Which was a step better than the year before, when I had to put about the same amount on my credit card. But even that is part of the debt I’m paying off this year. Thank you, America.

But that’s another issue. I just wanted to make you aware of FATCA, and the challenges one faces when venturing out of the US. Those thousands of people who have renounced their citizenship? You know how they’re punished for that? They get a whole month every year to visit the US. One month. Oh, even if you don’t expatriate and you simply live in another country, if you spend over 5 weeks out of the year in the US, you have to have ObamaCare. Yes, you do. Giving up your citizenship also has had a sharp rise in the actual fee, as well. Before this summer, the fee was around $450. Now it’s been raised to nearly $2350 (Forbes). If you are considered “wealthy,” there is also a hefty exit tax. So you basically have to be financially secure enough to afford the $2350 fee, but not too financially secure as to avoid the government deciding to just steal a chunk of your money on the way out. And forget about visiting family or friends for any length of time. Though your foreign spouse can spend several months in the US, if they so desire.

We can’t just sit back and allow our government to discriminate against a minority (though 6 million+ is not a small number!) of our citizens because it’s not a problem that we all face. As human beings, we have the right to live and work and enjoy the fruits of our labour, the right to a reasonable expectation of privacy, and the right to not be punished by a government simply because you happened to have been born in a certain part of the world. Nobody can control where they’re born, any more than they can control the colour of their skin, or their sexual orientation (I know we debate that one, stick with me). So why do we allow this? Why do we allow our government to punish people simply because they happened to be born in a place other than where they want to live? You may not believe in God, but I do, and I believe as human beings, we have no borders. Nationalities are just ideas in the minds of men, and we subscribe to it because we were told we had to. There is no America, no France, no Mexico, no Canada. There’s earth. There are people. I don’t belong to a land mass with an invisible (or barbed) fence around it. Nobody has the right to know where my money is, how much I have, what I spend it on, who I talk to, what I’m doing…. anything. And anybody who wants those rights does not have my best interest at heart.

The government does not see us as people, as individuals. Simply other fish caught in the net. We are little ATMs, little money-making machines that they can use and discard. Because they don’t care if we can pay our rent, or eat. They don’t care. And they are going to keep testing the limits, pushing the boundaries, until we say enough, and push back hard enough.

So push back with me. Stand up for our rights. If you’re an American living abroad, look up AARO (The Association of American Residents Overseas) for starters. Look up Senator Mike Lee of Utah. Write to your senators and congressmen. Vote for the ones who support the Constitution, and our rights.

Don’t wait until they come for you…

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

by thedreamer -

I Can’t Afford It

When you hear a friend saying they wish they could do something but can’t afford to, do you jump right into “well, just cut out things like a daily coffee, because $5 a day at 30 cups a month is $150 a month right there!” or something like that?

Whenever I read an article about how to stretch your money, how to save money… they always have ridiculous tips like that.

What if you never buy coffee?

What if you have the cheapest, most restrictive plan for your phone (granted, it’s a smart phone but I’m not giving that up) that you could find, and make calls from Skype to save money?

What if you only go see a movie once a month and only go to a matinee so you’re not paying full price?

How do you juggle paying for the necessities with actually enjoying your life and following your dreams? Life is so short, who wants to waste it working 3 jobs?

Yes, I know that everything we spend money on is a choice. I may decide it’s more important to me to keep flexibility so that I can travel (cheaply…) rather than spend the money going out with friends. I may decide it’s worth it to me to pay $25 for a game that I can play with friends (Cards Against Humanity!) than to have more food in the fridge. They are choices. But just because it’s a choice, doesn’t make it an easy one.

I don’t go to the salon more than 2 or 3 times a year and always look for a cheap one. I don’t get my nails done, I don’t shop for clothing retail – and haven’t shopped at all in months. In fact I’ve sold about half of the clothing in my closet this year.

So what do you say when you have to or want to spend money on something (like a used camera lens, or your dog’s dental care) but don’t have the means? What do you say when friends invite you out but when you add up the cost of gas, food, and a drink, it’s more than you make in a day? How do you continuously say “I can’t afford it, I can’t afford it” without getting depressed about it and sounding like a complainer?

Don't despair. There's no money in it, but I can sell my purse to pay for your dental bill.
Don’t despair. There’s no money in it, but I can sell my purse to pay for your dental bill.

For several years after I moved to L.A., I struggled with money. I moved in with a boyfriend when I could no longer pay my $400/month rent. I was only saved by a $9000 inheritance by a relative, which I stretched to the max after paying my credit card debt and buying a new computer. Because my other one was a 10 year old PC that had just died.

And then came Adsense to save me, and for several years after that, I lived in peace. I could afford a nice place to live. Piano lessons, acting classes, dance classes, elocution classes… I could invest in myself and my career, at last. And I did. And I went out with friends, and I bought Groupons to do fun things, I loaded the fridge with food, which sometimes went bad before I could eat it.

I decided professionally, that I wanted to try France, since although I was putting all this investment into myself, I was not getting work in L.A. So it was time to make the most of life, learn French, and see if the grass was any greener over there.

And then Adsense began to say a long and drawn out good-bye.

I started relying on my savings in addition to the monthly income that was not enough to pay the bills, which were now in Euros.

And eventually that ran out as I struggled to continue to pursue my goals, and I found myself back in L.A., basically broke, doing background work again. I thought it would just supplement my waning income while I tried to prop it up again, until it took one final gasp, and pretty much died. Oh, I still get a little from it, but it’s not going to pay rent. Perhaps with the continuing CPR it may be revived, but not to it’s old glory days.

So I’m left with dreams and goals and the distraction of trying to pay the bills instead of focusing on my real contribution to the world.

I proudly scrimped and saved a few thousand dollars by working and selling off many belongings… only to sit at the accountant and be told that out of that $13,000 I earned… the IRS wanted $1800 of it. I crumbled. I already had taken out a personal loan to combat the crazy interest charges on my maxed out credit card. I was already eating one meal and a smoothie every day. Except the days I worked. I’d been struggling (and still struggle!) to give up the new addiction to organic dark chocolate peanut butter cups, which I could easily spend $50 a month on.

I’ve grown weary of telling friends I can’t afford to join them, tired of not being able to invite people out, depressed because I can’t afford to go dancing, or take classes, or just fund my little documentary by myself, which would only take a few hundred dollars more. I feel frustrated when I think I can treat myself to something (which also doubles as another potential way to earn money, such as a used camera lens, or a better microphone for my camera) and then something “more important” comes up to divert the funds. I feel guilty for telling my friend with the herbal hospital in India, year after year, that I want to come and maybe this year I can make it… but I can’t. I’ve grown tired of the panic and stress that arises when I’m faced with having to spend money I don’t have (on tires, on the vet, the doctor…), and the way I burst out with “I don’t know what else to sell! I don’t know how I can cut back any further on food, I don’t know how I can afford this….” and probably seeming pretty pathetic to whomever I’m talking to.

Websites tell me instead of saying “I can’t afford it,” that perhaps I could say “that’s too expensive and not a necessity.” But how many more things can I say that to? The doctor? The vet? And who wants to live with just the necessities? That’s great for a short period of time, but… months without going out for an unnecessary dinner or drink or show? Other websites assume that you don’t WANT to do the things you’re invited to do. Like it’s easy to say no because “I have a goal I’m saving for.” It’s not easy.

But it’s not just that. It’s not just learning what your priorities are when it comes to spending (which is a good thing). It’s the stress it creates and the time it steals. When the first thought in my mind, all day long, is “how can I earn enough money to be able to meet my goals?” and it never ends… it leaves me little time to unwind and actually work on those goals. To sit and play guitar for a few hours. To read books, to improve my singing or acting, my Photoshop or photography skills. Because I feel the need to spend that time trying to earn money to keep fed and pay off my debt. I feel as if I’m wasting precious time in my life. At 32, I don’t want my main focus to just be paying rent and eating. I want to be using my skills, enjoying my time with friends, giving back because I have enough for me and for others. The struggle has taken away too much of my life.

I realize I’m not the only one. And while it can feel like everyone else can afford the things I can’t, I know it’s not true. I know other people are struggling. And I wish I could help. I wish I was in a position to…

But perhaps this struggle has led me to a position to help. I have a glimmer of hope at the moment. A few months ago, I knew that I would have to save up, and try to revive the website, if I wanted to get back to Paris, and travel more, and be able to focus on my goals and go out with friends, as well. So I started looking online for other ways I could earn money. I’d looked before, when I was doing well, because I wanted to help my friends to live the same wonderfully free lifestyle that I was blessed with. But I never found a way. I tried to help them do the same thing I was, but it wasn’t for everyone, and even I had help. A lot of it! And after the IRS stole most of my savings, I knew it was my only chance. To find something else I could get started with. Otherwise, I would be looking into a future of deep uncertainty. A few months ago, I found something. A location independent potential income, that started working for me. Not right away. Not before the taxes were due. At that point I thought I may still be doomed. But last month, hope started to bloom. I made some money. I found a light at the end of the tunnel.

It was (is) hard to want and need to spend money on things and not be able to, and not know when I would be able to. But now my goal is to work hard this month and have this parachute to catch me as I take a leap away from L.A. once more and leave my major source of income (background work). One more month of saying “I can’t.” I am determined that it be the last month. I am determined that when I get back to France, I will not have to say “I can’t”, I will have the freedom to spend on my creative pursuits. I will have the money for classes when I return to L.A.

I am determined to get to Paris and go out for a glass of wine on a warm summer night, without a worry in my mind about whether or not I can afford it.

So if you’ve been in this position, how do you deal with not being able to afford more than the basics? How do you manage the stress and budget your time between survival actions and pursuing your dreams?