The Mandatory Reparation Tax
When even the US Supreme Court cannot stick to the issues at hand.
The assault upon US citizens at home but especially abroad continues with a recent US Supreme Court decision. The case in question is Moore v. United States and the law being challenged, in part, is the Mandatory Repatriation Tax (MRT). Briefly, this is double taxation and one that does not require a taxable event. It is just a money and information grab on the part of the US. The case involves a married couple, the Moores, who invested in a friend’s company in India. While their investment has grown in value, they have not “cashed out”, in is unrealized income; paper earnings only.
The MRT is more than just this however and though the ruling was narrow, more info on it is required to understand how wrong it is. However, as this does not apply to me directly, I may be off some on the terms.
MRT requires foreign corporations that are in part owned by US persons to file tax returns with the IRS all the way back to 1986 and, if taxes are owed under the new tax law, pay them. It requires individual US persons who hold 10% or more in a nonUS corporation to do the same. To personalize this, let’s say I took a group of former students up on their offer to start an English conversation school with them here in Tokyo, Japan. Once this law was passed, I would then have to redo all my US taxes going back to the foundation of our corporation or 1986, whichever is the later date and possibly have to pay taxes based upon this new law. I am now 54 years old, the low requires corporations to refile all their US tax returns, or file for the first time with the US, going back to my sophomore year in high school. But let’s say I was born a few years earlier and left the US for Japan and started a corporation here as soon as I graduated from college in 1986. I would be even closer to retirement age and have to redo my US taxes for my entire working life up to that time, with no taxable event having taken place.
MRT is double taxation for those of us who live abroad. We either go through the process I just outlined, which is double taxation, to avoid double taxation in the future; or we ignore this requirement and are directly double taxed from now on. MRT gives us two choices, both of which are double taxation differing only in when that double taxation is to occure.
Experience explaining this to homelanders for the last 11 years, I will explain how this is double taxation for those you are doubtful of the claim. We are taxed on income by the countries we are legal residents of. To also have to pay taxes on income from sources in our countries of residence AND the US, the land of our birth, is double taxation. Only two countries on the entire planet engage in CBT, the US and Eritrea, though China is suspected of doing so and N. Korea is an unknown.
Quoting from an article on the decision, Justice “Thomas dryly noted that the court upheld the “MRT only by ignoring the question presented,” and instead answered a different question, to wit: “whether Congress may attribute an entity’s realized and undistributed income to the entity’s shareholders or partners, and then tax the shareholders or partners on their portions of that income.”” “In his view, the majority sidestepped this question of whether the 16th Amendment includes a realization requirement by first inventing an “attribution” doctrine to sustain the MRT and then comparing the MRT to long-standing congressional practice.”
And thus all our efforts to kill Citizenship based taxation (CBT) and FATCA/FBAR end up; the questions that form the basis of cases dealing with these subjects are ignored and instead a question that was not asked is responded to. Thus, we are denied the jury box to protect our freedoms.
From an Epoch Times article on the same decision.
“In the case before the Supreme Court, the Moores made a modest investment in India-based KisanKraft, which supplies power tools to small-scale, individual Indian farmers with the aim of helping to make their operations more productive. The Moores had owned KisanKraft shares for more than a decade but never received any income from the shares because the company plowed all its profits back into the business.
But after the MRT was enacted, the Moores received a bill from the IRS for $14,729 for additional income tax they owed, despite having never received any payments from KisanKraft.
Although such profits aren’t ordinarily considered income unless shareholders either receive dividends or sell the shares for a capital gain, the MRT attempts to tax these funds as income by simply declaring them to be taxable income, which is a legal fiction, according to the Competitive Enterprise Institute, which is providing the couple with legal representation.”
This decision is not as bad as it could be, but it is a far cry from a win. The Moores have paid $15,000 taxes on unrealized income. They must give up their efforts to get this amount refunded or file another lawsuit challenging the constitutionality of taxing unrealized gains and hope that courts answer that question the next time around.
Stuff like this is why I am very glad not to be a US citizen.
The fat parasites in the US government are stealing so much money for themselves, they need to exsanguinate the existing taxable citizens, until they die.