What effects me mostly is that they have made banks and brokerages declining my account due to this law. They have a full right to deny banking with this kind of messy law that US congress refuses to fix and makes banks responsible.
It's a total mess. For sure.
I was referencing Yellen's confirmation hearing. There is hard data that suggest a couple of things:
85% of expats make less that FEIE.
Most moved for non business reason
Most move to one country and stay there
The other nuggets is, the ROI from the IRS point of view is very low. They would collect more tax by focusing on domestic issues. The revenue they collect does not cover the costs to keep the department running, it's only from the draconian penalities that it makes a profit.
I do expect a continued crack down on multi-national profiles, so, if that's you, it may get worse. But ostensibly it should work like, the country that you are a resident of has jurisdiction of your tax and oversight on suspicious money laundering behavior.
Blaming the authors of this law is fools game. It gets you absolutely no where. Done is done, we're at where we're at and it's about fixing this.
To that end, there is
not one sitting Republican House Representative that has voiced an opinion in our favor on this. There are however, 6 democratic house reps that have a public statement that supports positive reform. The only Senator that has voiced support is Rand Paul. Also, Meadows knows good and well what the problem is, he chaired the hearing on this a few years back. As Chief of Staff, he was in a position to suggest an EO that would have addressed this. The easiest fix is to change the word 'citizen' in the tax code with 'resident'.
Also, it's likely the GILTI tax will be overturned, at least in part, every effort to turn back some of this is a step in the right direction. That case is awaiting a decision.
Until then, the only remedy is a 2nd passport, then renounce. Very unfair of course. But that's the truth.
