Capital Control is here

[Trianon]

Who the hell sneaked this one in?

http://www.zerohedge.com/article/its-official-america-now-enforces-capital-controls

From latest stimulus act, the $17.5 billion Hiring Incentives to Restore Employment Act (H.R. 2487),

(a) IN GENERAL.—The Internal Revenue Code of 1986 is amended by inserting after chapter 3 the following new chapter:

‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS
‘‘Sec. 1471. Withholdable payments to foreign financial institutions.
‘‘Sec. 1472. Withholdable payments to other foreign entities.
‘‘Sec. 1473. Definitions.
‘‘Sec. 1474. Special rules.
‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL INSTITUTIONS.

‘‘(a) IN GENERAL.—In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.

This is in best tradition of the USSR, what's next, illegal to trade and hold foreing currency?

p.s. Sorry, if this was already discussed, search didn't pan anything

 

[Jhhnn]

Call the Wahmbulance.

Even according to supply side theory, growth occurs through investment. So if we want growth to occur in this country, we need to keep capital from gushing out like it has been for 30 years, like a major arterial wound.

I'm confident other first world nations achieve it in similar fashions, although I don't know the specifics.

Whining about this shows the Right's faux patriotism for what it is...

 

[DaveSimmons]

This is just saying you can't make some payments that will be taxable without advance withholding.

This does not say there are any new taxes, or that the tax you actually pay will be 30%. Just that you need to pay some of your taxes now instead of after you flee to the Cayman Islands.

 

[Trianon]

Call the Wahmbulance.

Even according to supply side theory, growth occurs through investment. So if we want growth to occur in this country, we need to keep capital from gushing out like it has been for 30 years, like a major arterial wound.

I'm confident other first world nations achieve it in similar fashions, although I don't know the specifics.

Whining about this shows the Right's faux patriotism for what it is...

You've mistaken me for someone else, never was "the Right" in the context of this forum. Just seems strange to me, that capital movement beyond the borders would be taxed, as it was already taxed once most likely during the year it was claimed as income. The only way I could the this could be justified if payment for services performed in the US is deposited in account holders name overseas. I operate small business with foreign partners, my payments to them seem to be exempt from this "update", but one can never be too sure...

 

[DaveSimmons]

Again this is not a new tax, it's enforcing withholding towards payment of existing taxes.