The Cross Border Living Blog

Gallup Poll Lists the USA as Most Popular Dream Destination

According to a recent article posted by Ray Clancy on the ExpatForum, "About 13% of the world’s adults, or more than 640 million people, say they would like to leave their country permanently and roughly 150 million of them say they would like to move to the United States, according to research from Gallup".

The United Kingdom and Canada are the next most popular. Australia ranks 6th, after France and Saudi Arabia.

According to the article, the Gallup poll found that the most popular reason for migration is the search for opportunity. "Opportunity could mean the chance to join family members who are already in other countries, to start a new business, to express one’s views without fear, or to live where children are treated with respect."

For more information, check out the article either from the link above or here: http://www.expatforum.com/america/the-united-states-is-the-most-popular-dream-destination-poll-reveals.html

 

Taxpayer Bill of Rights Recommended by the National Taxpayer Advocate

Congress is being urged to put together a Taxpayer Bill of Rights. Yesterday, National Taxpayer Advocate, Nina E. Olson, released her annual report to Congress. The report indicates that a combination of expanding workload and decreased funding "is causing the IRS to resort to shortcuts that undermine fundamental taxpayer rights and harm taxpayers - ..."

The report summarizes recommendations made in past reports to create additional taxpayer rights and recommends that the rights be enacted into legislation. Ten (10) taxpayer rights and five (5) taxpayer responsibilities are mentioned. Of interest to many and particularly overseas Americans, are the suggested right to be informed, right to be heard, right to certainty, right to privacy and the right to a fair and just tax system.

Perhaps these suggestions are reiterated in this report due to the inclusion of a discussion relating to the IRS's policy change in the application of key terms of the 2009 Offshore Voluntary Disclosure Program more than a year after the application deadline had passed. The report states that the policy change was in contravention of the IRS's written pledge that "under no circumstances will a taxpayer be required to pay a penalty greater than what he would otherwise be liable for under existing statutes."

It is worth having a look at the Press Release which has links to the Executive Summary and the complete report.

Petition Created to Repeal FATCA

In its November 25, 2011 newsletter, the Association of Americans Resident Overseas provided a link to a petitition that Americans are being asked to sign. The petition reads:

"IRS efforts to chase tax cheats are netting another group entirely. Americans, 

green card holders, and dual citizens living abroad, face the threat of prohibitive 

fines for simply failing to file with the IRS, when many are unaware they were 

required to do so. This aggressive cash grab can devastate the lives of law-abiding 

citizens who already pay high taxes in their country of residence.

 

The fines for not reporting are as high as 50% of any unannounced holdings, 

year over year. This can add up to more than 100% of assets, even if no tax

is owed! Retirement funds and education funds for families who may never have 

even lived in the US would be wiped out. This is disproportionate and harsh punishment, 

and anti‐constitutional under the 8th Amendment of the Constitution. 

FATCA asks foreign financial institutions to act as collectors for the IRS, sometimes

breaking local privacy laws, and setting up prohibitive barriers to international investment 

and legitimate trade.

This is a terrible plan on so many levels. Repeal it now!"

To add your name to the petition visit the following link:

http://www.signon.org/sign/repeal-fatca?source=c.em.cp&r_by=188650

At the date of this post, there are 620 signatures and the goal is 750.

I'm off to Costa Rica with friends (Canadian expats) who own a guest house in Atenas . Looking forward to reporting on the cross border lifestyle that I have heard so much about. Post comments or questions that I can put to some of the local experts.

Cross Border Living and "Geo-Arbitrage"

I found an interesting article on "the location independent lifestyle" which apparently is being popularized by Tim Ferris' book, The 4-Hour Work Week. It also references three places to consider for your "geo-arbitrage". Happy Reading! http://financialhighway.com/the-location-independent-lifestyle-3-low-cost-but-amazing-places-in-the-world-to-live/

The Four Dynamics of Cross-Border Living

Since launching Crossborderliving.com and posting to this blog, I had received email correspondence from many expatriates and otherwise internationally mobile people who "get" what cross-border living is, but I also get a number of queries from others asking me to describe it for them.

I'm curious, what does crossborderliving mean to you? Please post your comments or email me directly and perhaps I'll post some of them in the upcoming days to start a conversation about what I think is a very important topic.

In the meantime, I have listed below what I call the "Four Dynamics of Cross-Border Living", which are expanded upon in my book When Families Cross Borders: A Guide For Internationally Mobile People. I believe that these dynamics are part of the core of cross-border living from a life and financial planning perspective:

1. Globalization continues to break down barriers. In the current era of globalization, individuals can now ask themselves "where do I fit in" and "how can I collaborate with others?" People and assets are in motion across international borders regularly.
2. Despite some international conventions, laws are jurisdictional. Although the world is increasingly "flat", tax, matrimonial and succession laws are still defined by national and municipal boundaries and are often in conflict with one another.
3. While the world may be flattening, people are multidimensional. Individuals have a need to live, to love, to learn and to leave a legacy. Increasingly, internationally mobile people and those living a cross-border lifestyle are seeking ways to find balance among these needs and the four dynamics of cross-border living.
4. Cultural and familial imprints regarding money. Faced with the complexities of certain aspects of cross-border living, many of us know that we could be making greater strides in taking control of the life we most want to live, but often belief systems that tie back to cultural and familial imprints, hold us back.