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IRS "Turning Over Every Rock" to Raise Revenue: Obama Targeting Overseas Assets

Posted Jul 10, 2009 09:27am EDT by Aaron Task
Faced with massive deficits and dwindling tax revenues, the U.S. government is "turning every rock it can over to find as much revenue as it can," says Ken Rubinstein, senior partner at Rubinstein & Rubinstein.

In addition to potential tax hikes, Rubinstein sees a wholesale change in how America treats foreign holdings of U.S. individuals and corporations, citing:

  • Repatriation: The Obama administration has discussed raising taxes on profits earned overseas by U.S.-based corporations. "This will increase revenues but some companies may leave the country," Rubinstein says.
  • Flexing Muscles: The U.S. government will ask all nations to sign a "tax information exchange agreement," says Rubinstein, citing unnamed foreign government officials. He declined to specify but the attorney has advised Caribbean banking centers in the past. Smaller nations will have no choice but to acquiesce, Rubinstein says.
  • Crackdown on Havens: Beyond the government's ongoing case against UBS, pending legislation declares "anybody who sends money to a ‘tax haven country' will be presumed to be committing tax fraud," Rubinstein says. "The burden will be on the taxpayer to prove he didn't commit tax fraud. The judge, jury and prosecutor will be the IRS." This will make it increasingly difficult for U.S. citizens to shelter assets abroad - even for legitimate reasons.

The government is "doing as much possible to increase amount of taxes it receives," he says. "It will increase revenues, but the question is whether the government looks at things in the long-term or only in the short-term."

I think we all know the answer to that question.

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517 Comments

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 09:51AM EDT

Mad? Then stop shopping, stop moving money, stop amassing debt. Man up for once, don't let them call you a consumer!

Fast
Fast - Friday July 10, 2009 09:52AM EDT

It's time to organize against this bureaucracy...Any info on protest groups in MASS??? I am desperate now and have been beaten beyond caring for this crap.

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 09:53AM EDT

There is a Democrat Congressman in my neck of the woods, whose relatives do not pay property taxes. And from the issues that most of Obama's cabinet appointees had with the IRS, I say Obama should first look to his own party for additional revenue. It seems that many Dems in office have not been paying their fair share for a while, yet they want to send the rest of us to the poor house!

caseyn
caseyn - Friday July 10, 2009 09:54AM EDT

The government couldn't run a liquor store in a logging camp and now they want to run every private business they can. In the 1980's the govt took over a brothel in Nevada for tax evasion and couldn't even make that work! The Post office is a prime example of almost a complete monopoly in the mail delivery. They get very little competition form FedEx and UPS in the letter business. What was their profit last year? Thats right a HUGE loss. Better learn Mandarin Chinese as a primary language.

Fast
Fast - Friday July 10, 2009 09:54AM EDT

It's time to organize against this bureaucracy...Any info on protest groups in MASS??? I am desperate now and have been beaten beyond caring for this crap. I got almost Nothing left...

- Friday July 10, 2009 09:55AM EDT

FLAT TAX ---now is the right time to act.. Abolish the IRS as we know it, and install a 15% flat tax on all purchases except for food. Nobdy can read the 6,000 page tax code or even understand what is in it. Close the tax loopholes and encourage savings because you would only be taxed on what you spend. This would also catch those people living here illegaly that presently pay no tax.

take_the_cash
take_the_cash - Friday July 10, 2009 09:55AM EDT

What a joke! The government blows billions to rescue AIG and the too big to fail banks, then the government has to turn over rocks to get tax revenue. If the government would stop spending then this wouldn't even be an issue. Meanwhile the citizens of various states are in need of a bailout and the government is looking the other way.

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 09:56AM EDT

The Lord giveth and Obama taketh away.

DavidR
DavidR - Friday July 10, 2009 09:56AM EDT

How about the start boosting tax collections by charging penalties on Tim Geithner and Charles Rangel?? This is outrageous do as I say not as I do behavior. Is this country a monarchy where the nobility don't pay taxes and they go after people who aren't as annointed? Newsflash for Obama: If you want capital to stay in this country, how about you skip cap and trade, stop promoting unions and doing stupid things like punishing oil refineries for operating in the U.S.??

HOPE FLOOTS
HOPE FLOOTS - Friday July 10, 2009 09:58AM EDT

we are doomed to fail just like rome.

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 09:58AM EDT

The Mafia, err, I mean the government wants more.

jay k
jay k - Friday July 10, 2009 10:00AM EDT

Since the Private sector jobs are depleting as days goes by, definitely raising the taxes on US corporates for profits outside will make situations even more worse with respect to unemployment.May be Unemployment will touch 12-13 %.

Dave
Dave - Friday July 10, 2009 10:00AM EDT

This guy and congress spend trillions of dollars on useless programs that benefit no one but their buddies, now hes got to pay for it. Man this is like walking over dollars to save pennies These spending programs should be rolled back and the money put toward the deficit not give away programs. And lets not forget cap and tax. Another winner, more money on junk science

Dave
Dave - Friday July 10, 2009 10:02AM EDT

This guy and congress spend trillions of dollars on useless programs that benefit no one but their buddies, now hes got to pay for it. Man this is like walking over dollars to save pennies These spending programs should be rolled back and the money put toward the deficit not give away programs. And lets not forget cap and tax. Another winner, more money on junk science

Daniel
Daniel - Friday July 10, 2009 10:02AM EDT

THis will be the worst government ever! the sad part is that whatever they do now will be almost irreversible and will have lasting effects for generations to come...

Leo
Leo - Friday July 10, 2009 10:03AM EDT

Hey, Obama....instead of trying to "raise revenue," how about you and Congress try reducing your spending? But I guess you wouldn't understand such a basic, economically-sound principle.

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 10:03AM EDT

That's funny. The government wouldn't have to turn over every rock and hike taxes everywhere if they hadn't screwed things up so badly. And keeping true to form, our liberal president thinks the solution is to increase taxes (i.e. - constrict the economy) rather than encourage the circulation of money, which by expanding the tax base actually yields more revenues than a rate hike.

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 10:03AM EDT

Desperate people do really stupid things. Another example of this loser's attempt at showing people he is doing someting. Spend $2 to recover $1. Shrewed

Yahoo! Finance User
Yahoo! Finance User - Friday July 10, 2009 10:04AM EDT

Its about damn time. The first tax evading scum they should nail should be every member of the U.S government starting with OBAMA.Don't forget the clown that was hiding his money in the freezer.It seems like every week another member of the government is found guilty of lying,cheating or hiring illegal immigrants.OBAMA , the real problem is with your whole damn administration.There all a bunch of thieves.You too Timmy Geitner. Instead , they will attack the hard working middle class (a.k.a the working poor) to flex their muscles on. Looks like another business as usual President. Bush keeps looking better and better as the months go by.

john g
john g - Friday July 10, 2009 10:05AM EDT

I FEEL THAT THIS IS A TIME OF CHANGE WHEN AMERICA CAN LOOK TO THE FUTURE AND WE CAN HAVE AGR EAT A ECONOMY WITH GOOD PAYING JOBS GOOD EDUCATION SYSTEM AND GREAT AFFORDABLE HEALTH CARE AND GREAT HOUSING FOR ALL .IT IS TIME WE CAN DO IT WE ARE THE WORLDS LEADER AND THEY LOOK TO US FOR SOLUTIONS WE NNEED A NEW ENERGY POLICY AND GRID NAD GOOD FOOD

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