Witch Hunt Will Only Drive More Capital Offshore
Newsmax reports that IRS has had some successes in getting UBS, the Swiss bank, to disclose some of the US account holder information on some of its secret numbered accounts. The number of disclosures is only about 300-400 on a total of almost 50,000 accounts. UBS is properly refusing further disclosures as required under Swiss privacy laws.
The first decision that law abiding US citizens usually make when moving funds offshore is that they do not need secret numbered Swiss bank accounts. They know (or suspect) that owning an offshore account is prefectly legal, and for reasons of transparency (in case they ever need to submit to an audit or other scrutiny) and honesty, they know that anonymity does not serve their purposes.
The result of this activity by the IRS and the Treasury is not going to be the $100 billion in additional revenue they are seeking.
Instead, this activity will produce a further flight of capital from our shores – owned opnely, honestly, legally, and attributably by US citizens who have every reason and every right to logally place their assets where they can do them the most good.
And the astonishing thing is the with todays electronically globalized economy, moving and managing assets via the internet is very, very simple for the common person to do. One doesn’t even need to learn the complexities of s hsell game or 3 card monte game to be able to do it safely and effectively.
It’s almost sad that the IRS and the Treasury are at such a stinging disadvantage. Indeed, it’s just laughable.
Of course, there is already wide and angry discussion among high earners who see confiscatory tax policies coming soon, and they are already adjusting their incomes and moving assets legally offshore to avoid the coming predatory taxes. As noted elsewhere here at RedState, many will incorporate companies entirely offshore in order to avoid US Taxes entriely on future incomes.
When you see the enemy whetting his long knife, you take measures to defend yourself and your family. The IRS and Treasury are obviously whetting their long knives to come after revenues that the ‘victims’ will largely be able to protect easily. Domiciling corporations and assets offshore will only be one strategy of many.
Certainly, secretive individuals who are trying to hide ill-gotten gains from drug sales and so forth should be dealt with and that is probably most of what we are seeing with the few UBS disclosures.
But alert businesspeople are taking notice from these activities that their domestic assets are next and they are taking action accordingly.