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Topic: New Law going into affect July 1,2014  (Read 1217 times)

sarahlee

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New Law going into affect July 1,2014
« on: April 23, 2014, 06:35:04 pm »
I want to know if anyone can tell me what this new currency law obama is passing for July 1, 2014 is about.
I tried reading about it online but I'm very much confused.  All I make out of it is that something bad is going to happen with our dollar bill.
Could someone please, please, please tell me what this is all about. I'm getting soooo worried. July 1st is just around the corner!!!!

skrogman

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Re: New Law going into affect July 1,2014
« Reply #1 on: April 23, 2014, 08:33:58 pm »
I have not heard anything at all about a new currency law.  Now you have me curious, too.  What is up?

ktheodos

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Re: New Law going into affect July 1,2014
« Reply #2 on: April 24, 2014, 03:08:45 am »
Not sure what you're talking about....

msmoneybags48

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Re: New Law going into affect July 1,2014
« Reply #3 on: April 24, 2014, 04:24:27 am »
I have heard something about Obama and the currency, but I have not gotten details enough to explain it to you. ??? ??? ??? :rainbow:

rghvac69

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Re: New Law going into affect July 1,2014
« Reply #4 on: April 24, 2014, 05:07:54 am »
All I've heard is that our money design is being changed again to prevent counterfeiting. But with the government militarizing the police, stockpiling ammunition, and buying up storable food I'm starting to wonder if they know something bad is about to happen economically. 

sdenimandlace1

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Re: New Law going into affect July 1,2014
« Reply #5 on: April 24, 2014, 06:36:01 am »
Not real sure what is going on here in America, our world is changing quickly.

bhiett

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Re: New Law going into affect July 1,2014
« Reply #6 on: April 24, 2014, 06:49:57 am »
There was an April Fool's Day prank out there about new currency and deadline for exchange... before you get too excited you might want to check out the spoof websites on this topic.  If it was for real, the newspapers and online news would be all over it.

pmagalei

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Re: New Law going into affect July 1,2014
« Reply #7 on: April 24, 2014, 09:16:26 am »
I have never heard anything about this. This could be just a prank. No one is sharing anything on the news about it. So I am not really sure what will take place on July 1st. But I am pretty sure we will hear from it more sooner than later if and when this will be forthcoming!

ro901

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Re: New Law going into affect July 1,2014
« Reply #8 on: April 24, 2014, 09:46:43 am »
It is an advertising scam. The video is by stansberry and ALL their videos are just an endless advertisement. Don't bother clicking on them. There is a law going into effect regarding sale of ammunition rounds but it has nothing to do with currency. 

lvstephanie

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Re: New Law going into affect July 1,2014
« Reply #9 on: April 24, 2014, 10:07:23 am »
There is a new law, the Foreign Account Tax Compliance Act (or FATCA), that was passed in 2010, and will go into effect on 7/1/2014 and be required to be adhered to for the 2014 tax year. (see http://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act). It was added as an amendment to the Hiring Incentives to Restore Employment (HIRE) bill that added tax incentives to companies that hired employees that were unemployed previously.

FATCA was created as an effort to close some of the tax "loopholes" of investors putting their money in foreign financial institutions (FFI). FATCA would require FFI to disclose to the IRS information pertaining to any US citizens (including foreign residents) investing in these FFI, including the person's tax ID number (TIN; for individuals, this is usually just their Social Security Number), the person's address, financial accounts with the FFI, etc.). The FFI will have to deal with all of the expense that this entails, or if they decide not to comply, then a hefty 30% punitive tax will be imposed on the FFI for all US asset withdrawals. It also requires US citizens to file a new tax form along with a 1040 to the IRS or face possible 40% understatement penalties.

Although no one can really say what effects this law will have on the foreign financial markets, some of the criticisms that this has received appear to already be making itself felt. Because of the 30% tax on non-compliant FFI, some are refusing to accept new accounts from US citizens, and may even lead to further divestiture of the US market (meaning these FFI may sell of US investments and assets before FATCA goes into effect, which ends up hurting US businesses that had originally sold these investments to foreign markets). Some websites are using this possible effect to portray a complete collapse of the US economy, but while divestiture of US investments in foreign markets may hurt the economy, it probably won't bring about a complete collapse of the economy.

Another issue is that US citizens are revoking their citizenship, esp. foreign residents that don't plan to live in the US (eg people working outside the country, those with dual citizenship, etc.). There has already been a surge in people revoking their citizenship following 2010, and some of the cited reasons are due to FATCA regulations (see http://www.forbes.com/sites/robertwood/2014/02/06/americans-renouncing-citizenship-up-221-all-aboard-the-fatca-express/). This is very reminiscent of what happened in Ayn Rand's novel Atlas Shrugged in which the country's most successful industrialists, under increasingly aggressive regulations from a heavily socialized US government, decide to pack up business and move to countries with more favorable business laws. Because of these similarities, some right-wing blogs have too used FATCA as an attempt to scare people into thinking that the US will devolve into the dystopian society posed in Rand's book.

Finally since this law is targeted to any US citizen regardless of residency, there might actually be US citizens that don't realize that they are in fact citizens of the US, which could cause havoc for both the FFI that they have accounts with as well as with the IRS. Because a person is considered a US citizen if they either were born in the US or if they have US parents, some people may not realize that they are US citizens (eg their parents took a trip to the US and birthed their child there instead of in their home country (like as happened with President Obama), or were birthed by US parents but adopted out to a family in a foreign country), which might lead to FFI to dig deep into the past of all of their account holders in order to prevent any accidental non-compliance. Because these FFI may do intensive background checks, it begs the question about a person's privacy, esp. for those citizens in foreign countries.

I'm not sure if this is what you were hearing about, but I do think this is another example of the US being penny-wise / dollar-foolish... In an attempt to try collecting taxes that some shelter in off-shore accounts, the impact of these new regulations may havee serious, unforeseen consequences that will do more harm to the economy then not collecting those additional revenues would produce.

That being said, the new FATCA regulations aren't really about the US currency / the dollar bill. There was indeed a prank sent out for April Fools Day in a financial blog that stated that several of the US border states were going to move to Canadian currency in order to boost tourism. It was a very well-written blog that cited several reasons for this move, and it was only at the end of the article did it state that the entire article was just an April Fools prank. However other blogs were quick to link to this article, either intentionally by thinking it a great prank or unintentionally by not reading the entire article, and so the news quickly spread around the internet. If this is what you were wondering about, then bhiett was indeed correct that it is only a prank, nothing to worry about.

lvstephanie

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Re: New Law going into affect July 1,2014
« Reply #10 on: April 24, 2014, 10:14:46 am »
It is an advertising scam. The video is by stansberry and ALL their videos are just an endless advertisement. Don't bother clicking on them. There is a law going into effect regarding sale of ammunition rounds but it has nothing to do with currency. 

You're right about the Stansberry video. But they are one of the main groups using the real FATCA law as the premise behind their video. Hence the reason why Snopes rated this as being a mix of fact and fiction (see http://www.snopes.com/politics/conspiracy/hr2847.asp).

vickysue

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Re: New Law going into affect July 1,2014
« Reply #11 on: April 24, 2014, 01:28:03 pm »
Just another reason I don't trust Obama. You never know what is true or false until he as already scre*ed us.w

hawkeye3210

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Re: New Law going into affect July 1,2014
« Reply #12 on: April 24, 2014, 01:57:54 pm »
The new law deals with virtual currencies such as bitcoins. The new regulations will require taxpayers to recognize any gains when you sell/use your bitcoins. That's the basics, but I will still need to do more research on the law.

fjaz1

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Re: New Law going into affect July 1,2014
« Reply #13 on: April 24, 2014, 02:19:07 pm »
You do that, thanks.  I don't use them and heard bad things about them anyway :bad:

loulizlee

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Re: New Law going into affect July 1,2014
« Reply #14 on: April 24, 2014, 03:15:29 pm »
I don't agree with everything Obama has done in his presidency, but, as far as I can see, he has not done anything worse than any other president.  Everything that goes wrong is attributed to Obama.  I have seen some of the most grotesque and ridiculous pictures of him that have been photo-shopped and made to show him in a bad light.  And some of the captions are so far out it is insane.  People look at and read some of this stuff and really believe it.  That is what scares me, and what I don't trust is people who read and pass on these things when they really don't know what they are talking about.

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