Hire Incentives to Restore Employment Act & Foreign Account Tax
This eRumor appears to be an unproven conspiracy theory
that warned of the possible
ramifications of the passage of the Hire Incentives to Restore
Employment Act along with the Foreign Account Tax Compliance Act.
TruthOrFiction.com has found no evidence at this time as to how the
enforcement of this act will effect the U.S. Dollar.
We will post findings here if anything develops.
We found the possible source to this eRumor on the Victory Women In Development
website. The page links this allegation with a story about
gun control legislation and the lobbying efforts of National Rifle Association.
How the two topics are related remains a mystery.
H.R. 2847, the Hire Incentives to Restore Employment (HIRE) Act is
real and was signed into law in 2010. In this bill was tacked the
Foreign Account Tax Compliance Act. This law, known as FATCA, makes U.S.
residents accountable for money invested in foreign banks by requiring
the offshore financial institutions to provide a 1099 form to the
Internal Revenue Service for their American customers.
This according to a
July 28, 2013 article by The Hill, a new service that reports on the
business of the U.S. Government in Washington, D.C.
The article said, "Under
FATCA, banks will be forced to submit information on total assets,
account balances, transactions, account numbers and other personal
identifying information. This intrusion goes way beyond a 1099 and would
not be accepted or tolerated by Americans living in United States. "
Noncompliance will result in huge financial penalties and sanctions to
the foreign financial institutions.
The Hill added that
neither Congress, the Internal Revenue Service nor the U.S. Department
of Treasury are certain how much FACTA will generate in terms of revenue
in taxes. The article said that President Obama "suggested
$210 billion over ten years," and $800 billion over the course of ten
years was projected by unnamed "others."
It is not really known what
ramifications this law will have on U.S. residents with funds in foreign
banks or if foreign banks will cooperate with the law. The Hill also
reported that the U.S. demands on foreign banks to provide client
information may "violate their own country's laws and constitutions."