Offshore Asset Protection BLOG - Bob Bauman

Spam, Spam, Spam, Spam

Don't you just love checking your email each morning, if only to see what spam has slithered into your account overnight? My email server pretends to have a spam filter, but if they do, it doesn't work. I've adjusted it to the highest levels, and the stuff keeps on coming.

But sometimes even a pig can root up a truffle. And there it was in my list of e-mails yesterday, right between "Clean out your colon and feel better" and "Look for peace of mind, with life insurance coverage."

The heading on this email informed me that "You Qualify For a Stimulus Balance Payoff..."

I opened and read with increasing wonder. "You qualify for a Stimulus Balance Payoff Before June 5, 2009. The economic stimulus helps create jobs, and gives Americans the opportunity to payoff their outstanding balances for a fraction of the total, thus stimulating the economy."

Stimulation, Even Titillation

Well, the thought of paying off all my debts gave me a certain stimulation, but I controlled myself and read on.

The email never mentioned President Obama or the Democrats in Congress, but the clear implication was that I qualified for some sort of government stimulus relief because of my indebted status, right along with the big boys -- like AIG, Bank of America and all those other tottering banks, GM, Chrysler, Goldman Sachs and Morgan Stanley. I knew the Democrats had rushed the stimulus bill through Congress, so personal debt elimination must have been somewhere in the fine print.

Click Here

The e-mail promised that I could get "a Stimulus Balance Payoff from the following creditors" -- followed by a list of just about every sort of debt anyone could owe. And, feigning personal knowledge, it told me I owed at least "20,000" -- but without any dollar sign $. (Perhaps these e-mails go to foreigners too, where the 20,000 would be preceded by a € or a £ instead of a $).

All I had to do to get this windfall was click on a web link that I was promised would take me to my "personal account." I clicked but it turned out to be a fill-in-the-blanks web page that asked for lots of personal information needed before I would be connected with an expert debt elimination counselor.

Can't Fool Me!

Well, I may have been a lawyer and a Republican for almost half a century, but I'm not that dumb.

"Over the last year, we’ve seen thousands of letters from debt elimination fraudsters who have charged consumers from $400 to $7,000 for worthless advice," warns the U.S. Comptroller of the Currency, John C. Dugan. "In the end, consumers still owe on their debts and have lost the money paid to the fraudsters. They may have also hurt their credit record and compromised their identity by providing personal information, including account numbers."

Hmmmmm.....

But this "stimulus" debt payment email experience got me to thinking.

Email spamsters are not the only ones who are engaged in a massive slight of hand game with magical numbers that don't add up.

Obama the Debt Elimination Expert

Take for example, the President of the United States, that smooth talking, bright young man who smiles at us from the TV screen all hours of the day and night.

A few weeks back, in a full dress media and photo op with charts, the President outlined what he claimed were cuts in the $3.40 trillion dollar fiscal 2010 budget he has proposed. The cuts included defense spending, the elimination of a diplomatic position in Paris (saving $630,000 per year, mais oui!) and a few other cuts.

All in all, the President said the cuts will trim about a fantastic $17 billion from the budget.

Wow! $17 billion. Real money. And that will help us eliminate some of the trillion dollar deficit and our $11.4 trillion national debt -- won't it? After all, the national debt is going up an average of $3.78 billion each day -- a $17 billion cut in spending could save us three (3) whole days of debt increase!

Real Money

IMO spending cuts of any kind are good. Government is too big. But should we play let’s pretend that Obama's $17 billion cut will even scratch - much less dent - government spending or debt levels?

Obama's proposed total budget for next year is $3.40 trillion, up 14.5% from the 2009 budget. (That's the projected figure, but with TARP, TALF, stimulus, etc., the numbers keep shifting upward).

Regardless, the much ballyhooed $17 billion in proposed cuts is a mere 0.5% of the total expected budget. That’s about 1/2 of 1% in "savings" vs. Obama's 14.5% jump in spending. Net result: about 14% more in total spending.

That's the largest increase in spending in the shortest period of time in all of American budget history.

Washington as Usual

As Fox News commented: "If you have a coupon for $5 bucks off of a flat panel television that costs $1,000, you didn’t 'save' $5 bucks … you spent $995! Americans know if you spend 14% more than the previous year, it is far from a 'new direction.'"

Yes, folks, iIt's Washington and spending as usual. Political parties and control may change, but big spending, big deficits and big debt will go on -- until the inevitable collapse.

To paraphrase the Comptroller's warning about phony debt elimination: In the end, Americans still must pay higher taxes, we still owe a larger national debt and we have lost our freedom to the fraudsters."

Stimulus indeed! Spam comes in many forms.

** The Sovereign Society is a recognized voice in the complex offshore world. Join the Sovereign Society and keep informed.  

Rumors Fly in Washington and Panama

As the holiday weekend neared last week you probably didn't notice that on May 21st the U.S. Senate Finance Committee held a hearing on the pending free trade agreement (FTA) between the United States and the Republic of Panama.

Some confusion preceded the hearing, with U.S. labor leaders and radical anti-tax heaven Senator Carl Levin (D-MI) (left) calling for defeat of the Panama FTA, while U.S. business and agricultural groups issued statements of support.

As it turns out, even though he was a frequent critic of NAFTA and other trade pacts when he was preaching "change" on the 2008 campaign trail, President Obama, the Candidate of Change, has once again changed his mind.

Obama is now throwing his support behind the trade deal with Panama, courting a potential backlash from his labor union supporters. Obama now apparently views the Panama FTA as a strategic imperative.

The Panama pact has been bogged down in the Democrat-controlled Senate over hyped up concerns about Panama's alleged poor enforcement of labor rights and its well earned reputation as a leading offshore tax haven.

Panama a Major Latin Player

With the Panama Canal undergoing a major $6 billion expansion, its strategic location and importance and booming U.S. tourism and trade, Panama has taken on an important profile, said one person familiar with the Obama administration's thinking.

Panama is also a staunch ally in the U.S. war on drugs, U.S. counter-narcotics officials say. "If we alienate this country, it does matter," said the person. "For them, the free trade agreement is a sign of friendship."

One Washington source predicts: "The Panama deal, the smallest and least controversial treaty, will pass by July. Congress still wants some answers about Panama's tax and bank secrecy laws. But in the end, it'll approve the pact, opening up trade and investment opportunities tied to the expansion of the Panama Canal."

The irony of U.S. labor opposition is that the benefits of the Panama FTA largely go to the U.S. and will help create American jobs.

Panama exported $377 million to the United States last year and 96% of the goods from Panama already enter the U.S. duty free under existing trade preferences. By contrast, Panama currently applies tariffs ranging from 8% to 15% on most manufactured goods, with rates in the high double and even triple digits for U.S. agricultural products. Panama also bans the import of re-manufactured goods. That’s a potentially lucrative market for U.S. industrial and consumer exports, including cell phones, computers and earthmoving equipment.

Secret Concessions?

There may be a hidden reason for Obama's abrupt change of direction. The Los Angeles Times reported that last week a White House negotiating team visited Panama "...and successfully extracted concessions from the Panamanians on those issues, according to people familiar with the talks."

As I wrote on May 7th, after Panama elected its new president, conservative businessman Ricardo Martinelli (left): "A Panama City rumor has it that outgoing President Martin Torrejos and his losing PRD majority in Congress might attempt to reach some tax information agreement with the U.S. before leaving office, but that appears highly unlikely."

At the time, a Panama news report stated: "There is concern in various professional associations about the possibility that the current government might yield to these pressures and complete deals that affect the financial system and international services offered by Panama."

Since then these groups have been emphatic in their opposition to any quick agreement to change Panama's financial privacy laws that now make it a crime to reveal information unless done under court order.

Deal Now, or None Later  

At the May 21st Senate hearing, the Finance Committee chairman, Senator Max Baucus (D-MONT), (left) warned that it is doubtful that the new government of Panama's president-elect, Ricardo Martinelli, would make concessions to the United States in order to get approval of the FTA. He said that a deal with the outgoing president, Martín Torrijos, might be possible before he leaves the presidency on July 1st.

Martinelli has said that finalizing the trade pact with the United States will be a major goal once he is in office. He rejects accusations that Panama is a tax haven.

New Policy?

Shortly after the election on May 3rd, Frank De Lima, Martinelli's top economic adviser, told Reuters: "The perception that Panama is a tax haven is totally false," De Lima also said the new government will be open to sharing tax information with U.S. authorities.

That was hardly an encouraging sign for Panama's banking and offshore professional community for which banking secrecy is a major drawing card for business. Panama is a leader in the offshore financial world, and the leading banking center in Latin Americium south of Miami. Its financial privacy laws have played a major part in its success.

At the Senate hearing it also was claimed that the vice president-elect of Panama, Juan Carlos Varela (left), is already committed to support a treaty for the exchange of tax information demanded by both Washington and the Organization for Community and Economic Development (OECD), a claim my Panama sources seriously doubt.

Numbered Accounts & Bearer Shares

Representing the Obama administration, Everett Eissenstat, assistant U.S. trade representative for Western Hemisphere affairs, emphasized repeatedly that his office had been working closely with representatives of both Torrijos and Martinelli, and had made "great progress" on tax and labor issues.

  Eissenstat (left) claimed that Torrijos's government had made "important commitments, " saying they had accepted the "principles of transparency and exchange of tax information," will soon take steps to "deal with numbered accounts" and has appointed a commission to recommend how the Panama government can "immobilize bearer shares."

Apparently Eissenstat is ignorant of the fact that Panama has no "numbered accounts" and that Panama's anti-money laundering laws already require full "know your customer" identification of all bank account holders in Panama. My Panama sources tell me that most locals think that "bearer shares," (in which a change in corporate ownership can be achieved by transferring shares without revealing the identify of owners), probably have outlived their day.

Sharp Torrijos Response to OECD

In a letter to the OECD after the London G-20 meeting at which Panama arbitrarily, (along with Switzerland and a number of other respected offshore financial centers), was placed on a less than black list (the Grey List), President Martin Torrijos' (left)Minister of Commerce and Industry, made clear that his government would only go so far in exchanging tax information.

She condemned the G-20 and the OECD for "...discriminatorily affecting the good name and competitiveness of the international [financial] services offered by the Republic of Panama and that are the backbone of our economy."

The minister laid down these pre-conditions under which Panama only would exchange tax information: "1) The privacy of persons will continue to be protected and guaranteed against undue interference. 2) There shall be no automatic exchange of information. 3) There shall be no undue triangulation of information furnished among nations. 4) Any exchange of information shall be done based on individual requests supported by a specific and justified principle or law. 5) There shall be a reasonable transitional period with respect to any measure that must be implemented and that has an impact in the international services platform offered by the Republic of Panama, it being understood that the application of any measure shall occur at the same time as similar measures applied in each and every one of the states that are members or not of the OECD and that Panama considers to be competitors in the provision of international services."

Why Trust the U.S.?

As one long-time Panama offshore professional put it to me today: "After what the U.S. Department of Justice has done to the friendly government of Switzerland in the UBS bank case, why should any country trust a tax information exchange treaty with the United States?"

He was referring to the fact that U.S. prosecutors ignored the 1997 U.S.-Swiss tax treaty that provides liberally for tax information exchange in individual cases, instead demanding UBS release the names of an alleged 55,000 Americans who are said to have UBS accounts which the U.S. claims were used for tax evasion.

"That," my Panama friend said, "is the essence of a 'fishing expedition' which the treaty forbids."

He also doubted any tax information exchange deal could be finalized by the Torrijos government and the Obama administration before July 1st when Martinelli takes office.

Such a deal would require extensive legislative revision of Panama's financial privacy and bank secrecy laws, the Congress is not in session, and the new Martinelli-dominated congress takes office in five weeks.

Watch this space for further developments.

** To learn about the many current offshore opportunities offered by the Republic of Panama, my best-selling book, Where To Stash Your Cash: Tax Havens of the World, explains all. For greater detail, Panama Money Secrets, which I also wrote, is a good bet.

** The Sovereign Society is a recognized voice in the complex offshore world. Join the Sovereign Society and keep informed.

Memorial Day - 2009

Way back when I was a student at Easton High School on the Eastern Shore of Maryland, at the start of each school day, my classmates and I stood together and repeated the Lord's Prayer, then pledged allegiance to the American flag..."and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all."

In those days, before activist leftist judges ended school prayer and limited the flag pledge, millions of young Americans started the school day in the same way.

Think about that American flag -- 13 stripes signifying the original Atlantic seaboard colonies and 50 stars representing the present states of the Union/ The flag stands as the nation's essential patriotic symbol.

Proper Patriotism

The old saw is that "patriotism is the last refuge of scoundrels," and it's true that far too many have used appeals to patriotism, (or nationalism), to cover their nefarious schemes for power.

But on this American Memorial Day we should consider that patriotism also denotes positive, supportive attitudes toward one's country. Patriotism includes pride in one's country and its achievements, in its culture and also identification with other people in the nation. Patriotism implies that the country, however defined, offers moral standards and values -- what it means to be "an American".

Patriotism also implies that some times the individual should place the interests of the nation above their personal or group interests. Indeed, in time of war, the ultimate sacrifice may extend to offering your own life in behalf of your country.

Time for Reflection

Memorial Day is a day when Americans should pause and focus on the ultimate price so many before us have paid over the centuries to win and preserve our freedom.

Each generation has taken up and continued this struggle to protect liberty. Both passed on now, my father fought in France in 1918, my older brother flew missions in a B-24 Liberator over Italy in 1944. Perhaps your family history is similar.

There was a phrase among young folks - "To die for..." that meant that some object or person is so enticing that the attractiveness suggests a feigned willingness to make the ultimate sacrifice to obtain it.

But ask yourself this, how many Americans today would be willing to die for the freedoms and liberties we supposedly enjoy -- as more than a million before us have done? Those who fought and are serving so bravely in Iraq have answered that question.

But do we still enjoy the liberties for which so many fought and died? Or have freedoms been slowly taken from us, devaluing the sacrifice of their deaths. Did they die in vain? In his eloquent Gettysburg Address, President Abraham Lincoln suggested that what we do as a people would determine the answer to that very question.

Numbers

Americans are overwhelmed by numbers; presidential preference polls, a bloated national debt, huge budget and trade deficits, highway fatalities, the number of hurricanes predicted, crime statistics. But too many people seem more concerned about the latest American Idol winner or Wall Street numbers than about the leaching way of our freedom.

The cruelest numbers of all are those that seem so senseless.

Over 4,000 American military have died in the Iraq war, as well as many thousands more Iraqis and non-military American contractors. Whatever the merits of this war, each American and Iraqi casualty, many of them very young, were unique individuals. Each with his or her own life, loves and potential that now will go unrealized. Was this really necessary?

It's worth considering in comparison that in all the wars America has fought, including our own Civil War, 1,290,200 have died. During Gen. Robert E. Lee's first Confederate invasion of the North, at Antietam in my home state of Maryland, in one day alone, Sept. 17, 1862, more than 23,000 men were killed, wounded or missing.

Freedom and Liberty

Here at the Sovereign Society, we often speak of freedom and liberty, often in terms of very real threats posed to both these precious commodities.

To observe that so many have died in the American cause over so many centuries only accentuates the meaning and importance of the cause for which they gave their "last full measure of devotion" as Lincoln said. They died before their time, with promises unrealized, and in the service of their country. Their very real sacrifice for our liberties makes it all the more important that we guard against diminution of those liberties in our own time -- whether the threat is from abroad, or from within our own government.

Each of us always needs to be prepared for that unexpected hour of death, we know not when. The call to duty and service to country remains distant and unreal for too many Americans.

Focus today on the real meaning of Memorial Day.

We should always remember, always pray, that those who paid dearly for our liberties -- making the ultimate sacrifice -- may rest in God's eternal peace; that a merciful God will indeed bless America -- and that as a nation and as a people we always will deserve that blessing.

In those days, before activist leftist judges ended school prayer and limited the flag pledge, millions of young Americans started the school day in the same way.

Think about that American flag -- 13 stripes signifying the original Atlantic seaboard colonies and 50 stars representing the present states of the Union/ The flag stands as the nation's essential patriotic symbol.

Proper Patriotism

The old saw is that "patriotism is the last refuge of scoundrels," and it's true that far too many have used appeals to patriotism, (or nationalism), to cover their nefarious schemes for power.

But on this American Memorial Day we should consider that patriotism also denotes positive, supportive attitudes toward one's country. Patriotism includes pride in one's country and its achievements, in its culture and also identification with other people in the nation. Patriotism implies that the country, however defined, offers moral standards and values -- what it means to be "an American".

Patriotism also implies that some times the individual should place the interests of the nation above their personal or group interests. Indeed, in time of war, the ultimate sacrifice may extend to offering your own life in behalf of your country.

Time for Reflection

Memorial Day is a day when Americans should pause and focus on the ultimate price so many before us have paid over the centuries to win and preserve our freedom.

Each generation has taken up and continued this struggle to protect liberty. Both passed on now, my father fought in France in 1918, my older brother flew missions in a B-24 Liberator over Italy in 1944. Perhaps your family history is similar.

There was a phrase among young folks - "To die for..." that meant that some object or person is so enticing that the attractiveness suggests a feigned willingness to make the ultimate sacrifice to obtain it.

But ask yourself this, how many Americans today would be willing to die for the freedoms and liberties we supposedly enjoy -- as more than a million before us have done? Those who fought and are serving so bravely in Iraq have answered that question.

But do we still enjoy the liberties for which so many fought and died? Or have freedoms been slowly taken from us, devaluing the sacrifice of their deaths. Did they die in vain? In his eloquent Gettysburg Address, President Abraham Lincoln suggested that what we do as a people would determine the answer to that very question.

Numbers

Americans are overwhelmed by numbers; presidential preference polls, a bloated national debt, huge budget and trade deficits, highway fatalities, the number of hurricanes predicted, crime statistics. But too many people seem more concerned about the latest American Idol winner or Wall Street numbers than about the leaching way of our freedom.

The cruelest numbers of all are those that seem so senseless.

Over 4,000 American military have died in the Iraq war, as well as many thousands more Iraqis and non-military American contractors. Whatever the merits of this war, each American and Iraqi casualty, many of them very young, were unique individuals. Each with his or her own life, loves and potential that now will go unrealized. Was this really necessary?

It's worth considering in comparison that in all the wars America has fought, including our own Civil War, 1,290,200 have died. During Gen. Robert E. Lee's first Confederate invasion of the North, at Antietam in my home state of Maryland, in one day alone, Sept. 17, 1862, more than 23,000 men were killed, wounded or missing.

Freedom and Liberty

Here at the Sovereign Society, we often speak of freedom and liberty, often in terms of very real threats posed to both these precious commodities.

To observe that so many have died in the American cause over so many centuries only accentuates the meaning and importance of the cause for which they gave their "last full measure of devotion" as Lincoln said. They died before their time, with promises unrealized, and in the service of their country. Their very real sacrifice for our liberties makes it all the more important that we guard against diminution of those liberties in our own time -- whether the threat is from abroad, or from within our own government.

Each of us always needs to be prepared for that unexpected hour of death, we know not when. The call to duty and service to country remains distant and unreal for too many Americans.

Focus today on the real meaning of Memorial Day.

We should always remember, always pray, that those who paid dearly for our liberties -- making the ultimate sacrifice -- may rest in God's eternal peace; that a merciful God will indeed bless America -- and that as a nation and as a people we always will deserve that blessing.

IRS Commissioner Exposes Senator Levin's $100 Billion Lie

U.S. Internal Revenue Service Commissioner Douglas Shulman (left) is no slouch intellectually.

In his post since 2008, Shulman, a Bush appointee, holds a Bachelor of Arts degree from Williams College, a Master of Public Administration degree from Harvard University's John F. Kennedy School of Government, and a Juris Doctor degree (magna cum laude) from Georgetown University Law Center.

He had a long career in foreign and domestic finance and served as a senior policy advisor and as chief of staff for the National Commission on Restructuring the Internal Revenue Service.

Big Lie Exposed: And Tuesday, testifying before a U.S. House of Representatives appropriations subcommittee on the IRS $12 billion budget request, the Commissioner in effect called Michigan's radical leftist Democrat U.S. Senator Carl Levin, (below) a liar.

Shulman said that claims that the U.S. government and the IRS lose $US100 billion annually because of tax evasion by Americans who use offshore tax havens are "wild estimates" that "don't have much basis".

"Those numbers are pretty broad numbers," Shulman said. An AP news story noted that "the $US100 billion figure, a compilation of private-sector estimates, is often cited by Michigan Senator Carl Levin..."

And they might have added, Levin's spurious number has been repeated ad nauseam by his left wing media and political sycophants. Dr. Josef Goebbels would be envious.

Levin Unclothed: So I say thank you, Commissioner Shulman. (Hopefully you haven't jeopardized your job).

Finally someone of authority has pointed out that, on this "wild" claim, Emperor Levin has no clothes. (The senator nude is a disquieting thought!)

We have been exposing Levin's Big Lie ever since he started mouthing it several years ago. Last July, in an article entitled Levinism: The Truth Behind the Obvious Lies, I wrote:  "Levin likes to say that the IRS supposedly loses US$100 billion a year because thousands of American tax payers use offshore tax havens and banks to hide their income and evade taxes. That mythical US$100 billion figure has never been proven, in spite of a four inch long footnote #1 in the subcommittees latest ‘report' that accompanied the hearing."

Levin's Anti-Freedom Crusade: The real scandal is that the senator used these reckless charges in his effort to destroy the financial freedoms and privacy of his fellow Americans. Levin seems almost pathological in his hatred for tax havens and financial freedom. On the offensive with him, anything goes.

As I noted before, Levin chairs the same notorious Senate subcommittee that was headed by the late Senator Joseph R. McCarthy (R-WIS) (below) over a half century ago

It was Fighting Joe McCarthy's allegedly reckless use of this subcommittee in pursuing Communists in the U.S. government that gave rise to the term "McCarthyism."

To this day, McCarthyism is still defined as "the practice of making unfair allegations or using unfair investigative techniques, in many instances unsupported by proof or based on slight, doubtful, or irrelevant evidence." (Random House Unabridged Dictionary, 2006).

Levinism: At the time I suggested "a new odious term to describe the phony attacks on the world's legitimate tax havens: Levinism. For an exact definition, especially as it pertains to Senator Levin and tax havens see McCarthyism above."

I also suggested that we "put an end to reckless Levinism that spreads outright lies about tax havens. Group guilt is not only illogical prejudice, but in America it has always been unconstitutional."

Now, thanks to the honesty of IRS Commissioner Shulman, Levin has been exposed for what he is.

In the coming months keep in mind Levin's Big Lie as he tries to convince his U.S. Senate colleagues to adopt his odious anti-tax haven legislation

*******

While you can, there still are many legal ways to enjoy privacy, banking and save taxes offshore; Bob Bauman tells you Where To Stash Your Cash. If you're interested in living offshore, The Passport Book is just what you need.

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The American Exit Tax - One Year Later

On June 17, 2008, then President George Bush (where is he now?) signed an anti-expatriation tax law, Public Law No.110-245, unanimously passed by Congress under the misleading title "The Heroes Earnings Assistance and Relief Tax Act of 2008."

That Act imposed a harsh, punitive income tax regime on both U.S. citizens who expatriate, and on long-term U.S. residents ("green card holders") who decide to end their U.S. residency -- as both have a right to do.

Bad Company: The Act also placed the United States historically along side Hitler's Nazis, apartheid South Africa and the Communist Soviet Union. Each of those totalitarian regimes imposed an exit tax that robbed persecuted departing citizens (Jews, gypsies, political dissidents) with similar confiscatory taxes.

Much of this law has little to do with expatriation. It provides increased benefits for U.S. armed forces veterans. But because the budget rules of Congress require that new spending programs be accompanied by a source of revenue to finance them, left wing congressmen slyly wrapped their anti-wealth tax nostrums in the American flag.

2008 expat tax supposedly will finance the millions needed to pay for the veteran's benefits, but few believe that to be true. A study by the Congressional Budget Office guessed that the law might net the government up to $286 million over five years.

Radical Left Gets Its Tax Wish:

This expat "exit tax" was high on the wish lists of radical, left wing Democrats in the U.S. Congress for over a decade.

The chief sponsor, Rep. Charles Rangle, Democrat of New York, (below) chairman of the powerful, tax writing House Ways and Means Committee, slipped this horrendous tax into the popular military pension/pay bill, (without hearings or public notice). President Bush, the great tax cutter, signed it into law without so much as a whimper.

Rep. Rangle's sponsorship of the exit tax is more than ironic, since it was later revealed that he failed to pay taxes on over $100,000 in income as far back as 1988. He currently is under investigation by the House Ethics Committee (which probably will do nothing).

Legal scholars say this tax probably violates U.S. Constitution guarantees of the right to voluntarily end citizenship, as well as the right to live and travel abroad freely. I seriously doubt that any wealthy expatriate, lone gone from the U.S., would ever waste money on a court challenge.

Not Just for Billionaires:

This Act does not just apply to departing billionaires.

With a few exceptions for dual nationals and those with past ties to other countries, the tax applies to any expatriate: 1) with an average annual net income tax liability that exceeds US$139,000, adjusted annually for inflation for the five preceding years before the date of termination of U.S. citizenship or permanent residence; 2) with a net worth of US$2 million or more on the termination date; 3) who fails to certify under penalty of perjury compliance with all U.S. federal tax obligations for the preceding five years or who fails to submit any other proof of compliance the IRS demands.

Individuals who are within the grim numbers above are taxed enormously on everything they own, as if the person's worldwide assets had been sold for their fair market value on the day before expatriation or residency termination.

The Act allows exclusion of only $600,000 of net gain. That means a series of taxes could be imposed at the ordinary income rate of 35% or at a capital gain tax rate of 28% or more. (President Obama wants to raise both taxes). Gifts from an expat to those who remain in the U.S. may be subject to a new "transfer tax" at 45%. The Act even forces an expatriate to pay up to a 51% tax on distributions from retirement plans or other deferred payments.

One Year Later:

I know first hand that a surprising number of Americans are indeed considering expatriation, especially since the 2008 election. Many have been asking me how the IRS would administer exit tax.

Well now we know, if we can ever know what the IRS demands. As pointed out by international tax expert, Vernon Jacobs CPA, in spite of such a substantial change in expat tax rules and procedures, no new forms or instructions were available from the IRS for almost a year after the Act.

Finally the IRS has posted a 5 page Expatriation Information Statement (Form 8854) on the IRS web site, along with 8 pages of Instructions. and a lengthy text on General Information.

I've read these documents. When you see what the IRS is demanding from anyone who dares to exercise their right to expatriate, you will realize fully just how brutal the radical left in Congress can be when, as candidate Obama said, they have the power to "spread other peoples’ wealth around."

No doubt some persons who might be caught in this Draconian tax trap would be forced to sell most or all of their assets just to pay exit taxes.

Avoiding this forced bankruptcy by tax suggests two possibilities; either these folks will stay in the U.S. -- or they will rearrange their assets and their lives, leave and evade the taxes.

* For all the facts about the U.S. exit tax, you can get my special Expatriation Report here.

* While you can, there still are many legal ways to enjoy privacy, banking and save taxes offshore; Bob Bauman tells you Where To Stash Your Cash. If you're interested in living offshore, The Passport Book is just what you need.

Government Flying Out of Control

In The Federalist No. 51, published February 6, 1788, James Madison warned us: "In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself."

On that topic of government out of control, a Sovereign Society member who is a U.S. citizen and a licensed private pilot has directed my attention to yet another loss of freedom in the specious war, supposedly to counter terrorism.

Starting Wednesday, May 20, 2009,a mandatory rule issued by the U.S. Customs and Border Patrol (CBP) of the U.S. Department of Homeland Security (DHS), requires pilots to obtain prior written government permission for each private airplane (and each of its occupants) to depart on an international flight, or to return to the United States.

The rule requires "the identification and vetting of individuals on private aircraft, prior to entering and departing U.S. airspace" including identifying those who are U.S. citizens and those who are aliens.

Miraculously, the DHS/CPB promises that this pre-flight permission procedure will be done "by automation" within 60 minutes in most cases. (The rest will just have to wait).

Unbelievable

Read these stats and see if you believe that 60 minute promise.

According to the Federal Aviation Administration, in the United States there are about 240,000 private pilots, using 19,000 U.S. airports, (14,000 of them private), flying 220,000 private aircraft. In 2006 there were 140,000 private international U.S. aircraft departures and landings, carrying almost a half million passengers.

In justification of this rule Homeland Security assures us that it will allow them "to assess the threat presented by the aircraft and persons on board prior to takeoff, and thus aid CBP in preventing terrorists or terrorist weapons from gaining access to an airborne aircraft" -- which, of course, assumes terrorists planning to drop a bomb will dutifully file accurate information!

People Control

The CBP web site soothingly tells us that "On a typical day, CBP welcomes more than 1.1 million international travelers into the United States...while assuring that individuals who have ties to terrorism or a criminal background are barred from entry."

Yes, well, we are all opposed to terrorism by terrorists, aren't we? But what about various degrees of domination inflicted by government bureaucrats on the citizens whom they are supposed to serve? For example, government's increasing use of passport issuance or denial as a means of coercion.

In the United States a citizen can be denied a passport simply for owing taxes to the Internal Revenue Service, or if they are in excess of $2,500 in back payments for court ordered child support. Passport issuance allows government to control, restrict, monitor, and record everyone's travels -- now extended to private plane travel as well.

Thought Control?

And what about barring travel or entry because of the unpopularity of one's political or other publicly stated opinions?

A few days ago the United Kingdom released a list of the names of 16 people not allowed into the U.K. because the person is "...someone who has fallen into the category of fomenting hatred, of such extreme views and expressing them in such a way that it is actually likely to cause inter-community tension or even violence if that person were allowed into the country."

Will the U.S. government honor this list in barring American travel to the U.K.?

Left at the Gate

DHS also requires airlines and cruise ships to get DHS individual permission ("clearance") for each passenger on commercial flights to, from, or via the U.S. Unless the DHS says "Yes," if the answer is "no" or "maybe", or if the DHS doesn't answer at all, the airline isn't allowed to give the person a boarding pass.

After June 1, 2009, American citizens and resident aliens (green card holders) must show a valid U.S. passport, passport or NEXUS card or other special travel document approved by DHS when entering the country by air, land or sea from Canada, Mexico, the Caribbean and Bermuda.

Will the new CBP pre-flight process cross-check to see if everyone on the plane has a valid U.S. passport? With tens of millions of passports being issued and re-issued, with name similarity, what are the chances of a mistake? Or check with the IRS about unpaid taxes?

Secret No-Fly Lists

And what happens when DHS vets private plane travel by comparing names with the infamous secret "no fly" lists compiled by the U.S. government? People have no idea how they got on these lists, and even though 30,000 have demanded their names be removed, the U.S. government refuses to do so in most cases.

That inane computer approach has been used to place untold thousands of Americans on banned air travel lists, including David Nelson (of Ozzie and Harriet fame), infants, a 4-year-old boy, the police chief of Northfield, Minn., Catholic nuns, the co-author of the book Bush's Brain , U.S. Rep. John Lewis (D-Ga.) and U.S. Sen. Ted Kennedy (D-Mass).

DHS : Man Caused Disaster

American liberty is under attack all right, yes by potential terrorists, but also by government bureaucracy.

Homeland Security (DHS) Secretary Janet Napolitano, (left) whose department promulgated the new private plane rule, is also the Washington champion of political re-branding. Madame Secretary managed to delivered her entire Senate testimony without using the word "terrorism," preferring to use "man-caused disasters." Those CBP bureaucrats better get that new word.

New Pass Laws

At this rate of lost liberty, it's just a matter of time before we'll all be forced to carry (and produce upon police demand), an official U.S. ID card, an approximation of the infamous "Pass Laws" used in apartheid South Africa.

Then comes the global positioning system (GPS) devices in our cars to track our movements, (already in use in the UK), the RFID chip under the skin, and eventually may be we'll all sport a bar code tattooed on our foreheads.

Perhaps many of those private aircraft, if they ever do get clearance to leave the United States, will decide not to return.

*******

While you can, there still are many legal ways to enjoy privacy, banking and save taxes offshore; Bob Bauman tells you Where To Stash Your Cash. If you're interested in living offshore, The Passport Book is just what you need.

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Are you serious about your financial success?

Free report

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Everybody's Trying to Get Into the Act

We all have heard of "crisis management." How about "crisis exploitation"? 

Referring to the global economic recession as an excuse to ram socialist proposals through Congress, Rahm Emanuel, President Obama's, hard ball political chief of staff at the White House, cynically observed: "Never let a serious crisis go to waste."

Emanuel's observation was a modern echo of an ancient Chinese proverb: "A crisis is an opportunity riding the dangerous wind."

Well, as the late comedian, Jimmy Durante, (left) used to say in his famous New York accent: "Everybuddy's tryin' ta get inta da act."

And when one considers "dangerous winds," it's worth observing that there is no greater cave of winds than the United Nations, (other then the U.S. Congress). Located in Durante's beloved New York City, the UN has been called rightfully, "Babel on the East River".

It was inevitable that the United Nations, as did the EU and the G-20, also has decided to get into the global recession act.

Conference of Confidence

The UN is convening a three-day summit of "world leaders" from June 1-3, 2009 at its New York headquarters "to assess the worst global economic downturn since the Great Depression."

  This august assemblage is entitled the "UN Conference on the World Financial and Economic Crisis and its Impact on Development" (UNCWFECID?). Its worthy aim is to "mitigate the impact of the crisis" and "initiate a needed dialogue on the transformation of the international financial architecture..."

A senior aide to the president of UN General Assembly told the press that one aim of this meeting is "to drum up people's confidence by displaying the unity of the international community," noting that "part of the crisis is psychological."

Based on its its dismal history since its founding in 1945, I don't think the UN really will be much of a confidence restorer in this time of economic difficulty.

Global I.R.S.

The last time the UN formally addressed the world economic structure was in 2002 when we reported on another UN conference, that one held in Monterey, Mexico in the pre-swine flu days. I called that "the tax collectors meeting from Hell" where plans were laid for a UN "international tax organization," a sort of one-world IRS.

At Monterey the UN foresaw the day when it would become the world's tax collector. With such grandiose ambitions, naturally the UN has been part of the chorus attacking tax havens, singing along with the European Union, the Organization for Economic Cooperation and Development (OECD), and more recently as a result of the 2009 U.S. elections, joined by President Obama and his radical, left-wing allies in the Democrat-controlled U.S. Congress.

Repeat Performance

So get ready for another UN propaganda barrage in a few weeks, replete with the usual false and distorted attacks on tax havens -- and for attacks on your right to invest and bank when and where you please in this world.

The Democrats in the U.S. Congress already have said that later this year they will take up some form of anti-tax haven legislation, possibly as proposed by Senator Carl Levin (D-Mich). President Obama, an original sponsor of this legislation when he served in the Senate, has been strident in his attack on tax havens, indicating some form of his punitive plan may become law as soon as later this year and making it a part of his trillion dollar deficit budget.

Better Act Now

Given this very real possibility, it would be prudent for you to consider your own situation-- to figure out how best your assets, investments and finances can be reordered offshore for maximum profit and protection -- all fundamental goals at which the Sovereign Society has become expert in helping its member to achieve.

You can start your self-protection plan by today becoming a member of the Sovereign Society.

While you can, there still are many legal ways to enjoy privacy, banking and save taxes offshore; Bob Bauman tells you Where To Stash Your Cash. If you're interested in living offshore, The Passport Book is just what you need.

____________________________________

Are you serious about your financial success?

Free report

reveals 17 open and shut reasons for you to take the next step to secure your financial future...

Read the free report here now...

_________________________________________

The Ghost of Deutschland Uber Alles

 

The distinguished Prime Minister of the Grand Duchy of Luxembourg's, Jean-Claude Juncker, (left) currently the longest serving head of government in any the 27 European Union countries, has been more than just a little disturbed of late. And he has every right to be.

Bully Policies

Consider for a moment an imaginary scenario in which some policy difference over taxes arises between the United States and Mexico.

Suppose that in addressing that issue, Secretary of State Hillary Clinton compared Mexicans to native Americans in need of being put in their place by the U.S cavalry -- then compared Mexico to a backwater third-world country like Berkina Fasso. And suppose further, that House Speaker Pelosi suggested that if Mexico didn't agree to surrender to the U.S. position, the Obama administration might send in troops to solve the problem, as President Woodrow Wilson did in 1917 at Vera Cruz.

Germany vs. Luxembourg

Now, in place of such an unlikely scenario, substitute the Federal Republic of Germany (pop 82,329,758) for the U.S., and put Luxembourg (pop 491,775) in the place of Mexico and you have what happened.

Prime Minister Juncker has been infuriated at comments by leading German politicians who have publicly chastised Luxembourg and other countries for their bank secrecy laws.

German Finance Minister Peer Steinbrueck, (left) as diplomatic as a pit bull, sparked outrage last week when he jokingly lumped Luxembourg, Liechtenstein, Switzerland and Austria together with Ouagadougou, the capital of Burkina Faso, as problem tax havens. Germany is a country fascinated by American Indian lore, and Steinbrueck also suggested he wanted to deploy the German equivalent of U.S. Cavalry from Fort Yuma to fight the Indians, meaning those savages in Switzerland and Luxembourg.

Franz Muentefering,the head of Steinbrueck's Social Democrat Party (SPD), thretened in February that "tax havens" such as Luxembourg would have been dealt with even more harshly in the past, for example by "sending in soldiers."

Luxembourg Under German Occupation

"We don't find this funny. We were occupied, we suffered under German occupation," Juncker said, referring to the period between 1940 and 1944 when the Nazis controlled Luxembourg.

During the night of May 10, 1940, the German Wehrmacht invaded its cross border neighbors, Luxembourg, Belgium and the Netherlands. Luxembourg, a neutral country was occupied by German forces. More than 90,000 civilians were evacuated into eastern parts of the country and into France as the Wehrmacht rolled in. The royal family and government fled to exile the United Kingdom. The Germans stayed until 1944 when they retreated as Allied troops advanced.

Thousands Died

Adolf Hitler decreed a forced "Germanization" of Luxembourg, obliterating everything non-German, including French names and words. Everyone was threatened with unemployment unless they joined the Nazis. People who openly opposed the Nazis lost their jobs or were deported to eastern Germany and to death camps where many died. 5,703 citizens of Luxembourg died during World War II, nearly 2% of a pre-war population of 309,000.

More than 10,000 were forced into the Wehrmacht, including Juncker’s father, and 2,848 died in German uniform. 81% of the 3,800 Jews living in Luxembourg before May 1940 died. after being deported to concentration camps. A third of the homes were destroyed in the war, aong with many churches and monasteries destroyed or burnt by the SS.

Small wonder that Prime Minister Juncker, born ten years after that war, bristles at threats of German troops, even 60 years afterwards.

Grand Duchy No Tax Haven

Tiny Luxembourg over the years has become a major EU financial hub, thanks to its bank secrecy rules and low taxes.

What Germany resents is the alleged loss of tax revenues from highly taxed Germans who bank in Luxembourg where they have, until now, enjoyed statutory financial privacy.

The grand duchy is primarily a business and banking haven, rather than a personal tax haven. The corporate tax rate is over 30%. Personal income taxes can range up to 38%. Holding companies, which have enjoyed a special status since 1929, escape most taxes. That's why Microsoft, FedEx, AOL, iTunes and Skype are among companies with global or European headquarters there.

The country’s strong financial privacy laws are enhanced by the fact that Luxembourg is one of three EU nations (along with Belgium and Austria) that are exempt from tax information sharing with other EU member states, an exemption agreement to which Germany was a party.

Respected EU Leader

The irony of all this is that Juncker has been a respected leader in the European Union. He is also Luxembourg's Minister for Finances, a position that he has held since 1989 and was a governor of the World Bank. He has served two six-month terms as President of the European Council in 1997 and 2005 and has been mentioned prominently as the future president of the EU.

But when blustering German politicians don't get their way, exactly as they want it, and when they want it, Luxembourg has a right to be concerned when as the object of German wrath.

All this is just one more glaring example of the overbearing attitude displayed against sovereign nations by the leftist tax collectors of the G20 welfare states, President Obama included. Perhaps Hitler would get a chuckle at his successors antics in their Berlin tax bunker.

Reasonable people should not be smiling at this international tax dictatorship.

** The Sovereign Society is a recognized voice in the complex offshore world. Join the Sovereign Society and keep informed.

Offshore Bank Accounts a Necessity

With all the negative attacks on so-called "tax havens" by high tax, big spending politicians, such as U.S. president Barack Obama and U.K. prime minister Gordon Brown, it's no wonder that the average American or Brit may question whether having an offshore bank account is a wise move.

Of course, these calculated attacks, by politicians whose sotto voce motto is "Tax and Spend," are designed to sow just such doubt in the minds of citizens. Tax collectors in both countries want people to keep their money and assets where the Internal Revenue "Service" or Her Majesty's Revenue & Customs can get to them with minimal effort.

Big Brother’s Big Lie

Underlying this war on tax havens is the belief on the part of Big Brother government that anyone who does business offshore, rather than in their home country, must be engaged in tax evasion or some other illegal activity.

Indeed, U.S. politicians such as Michigan's far left U.S. Senator, Carl Levin, (above) repeat this lie ad nauseam. I've heard U.S. government officials from the Department of Justice state it as one of their basic assumptions. And now President Obama has added his strident voice to this bogus chorus.

Big Business

Offshore banking is big business worldwide. Some estimates calculate that more then US$6 trillion is stashed in nearly 40 offshore banking havens that impose no taxes, have less onerous regulations, guarantee privacy and cater to foreigners. One-third of the entire world’s private offshore wealth is held in Switzerland alone.

And I suggest, offshore banking could be very good for you.

Avoidance Vs. Evasion

While legal tax avoidance, (as opposed to illegal tax evasion), does figure among the reasons some people bank offshore, it is certainly not the main one. Indeed for U.S. persons, offshore tax savings are minimal, because U.S. persons are taxed on all their worldwide income, no matter where it is earned.

So here are some good reasons you should consider for opening your offshore bank or investment account:

1) Investing for Greater Profits:

An offshore account is an excellent platform from which to diversify investment, with instant access to the world’s best investment opportunities, including currencies, precious metals, and real estate and without being limited by your home nation’s anti-investment restrictions. Foreign stock, bond and mutual fund trading are not covered by SEC rules.

You also can purchase attractive, tax deferred insurance and annuity products unavailable in the U.S.. Unlike most U.S. banks, offshore banks offer "multi-currency functionality", the ability to invest and transact business in your choice of currencies. And offshore assets can be moved more freely, without some U.S. reporting requirements applying.

2) Solid Asset Protection:

The United States leads all other nations in lawsuits. The odds that a U.S. person will be sued during their lifetime are high. But lawsuits seek cash and assets. If your assets are located in the U.S., they're at the mercy of any state or federal court.

If they're hard to get, located offshore, a plantiff’s attorney usually wont take the case. They know they're not likely to collect a judgment. (At times it makes good financial sense to discourage a potential litigant by letting him know just how difficult it will be to reach your offshore assets).

Because of defendant-friendly local laws in asset protection and tax haven nations, foreign judgment holders have a difficult time enforcing it. To reach your assets, a successful creditor must start all over, using the foreign judicial process to press a claim. That means the expense of hiring foreign lawyers and paying for travel and witness transportation.

Besides promoting compromise of pennies on a dollar, the delay in such a strung out legal process allows time for a defendant to fight the action. Many offshore havens have one- or two-year statutes of limitations that run from the date an initial claim arises. Since a U.S. lawsuit takes years to get through the courts, this means an American court judgment could be void under the foreign nation’s cutoff date.

3) Flexible Planning:

Having some of your assets offshore allows more flexible tax planning and inheritance tax advantages, such as the establishment of an asset protection trust (APT), private family foundation or a limited liability company (LLC) for business purposes, each of which may have their own bank accounts.

4) Better Privacy:

Offshore accounts offer wealthy individuals a way of legally concealing their wealth from prying eyes, (other than government reports that are required). In addition to avoiding becoming a target for extortion and kidnapping campaigns in countries where such occurrences are common, persons of wealth may well want to avoid news media attention or relatives or others looking for hand-outs.

In spite of the false impression you may have gained from all those rabid anti-tax haven attacks, far greater financial privacy is still available in many nations, such as Panama, Switzerland, Liechtenstein, Singapore, Hong Kong, Andorra, or Belize.

In such countries it is a crime to release financial information unless ordered by a court, and that includes foreign government requests as well. Although most tax havens now are moving to exchange of tax information, that exchange procedure applies only to individual cases in which probable cause of tax evasion or other crimes are shown.

One fact we know -- under the harsh terms of the PATRIOT Act, privacy is dead in America. And, to be honest, who knows what currency or other offshore controls may lie in the political future. The time to act is now.

Sovereign Society Members Banking Services

One of the major benefits of membership in the Sovereign Society is our extensive offshore banking advisory service and our banking connections in diverse jurisdictions. At a time when the IRS has frightened away some offshore banks from taking American clients, we can recommend Swiss and other European, Asian, Latin American banks that welcome our members.

Join us and enjoy the freedom of offshore wealth.

Haven Panama – With My Apologies

Earlier today (see below) I took to task one Frank De Lima, identified by Reuters as a "top economic adviser" to Panama’s president-elect, Ricardo Martinelli (left). My concern was a statement attributed to Sr. De Lima that: "The perception that Panama is a tax haven is totally false."

With my usual editorial restraint, I called Sr. de Lima’s statement stupid and false, suggesting he should be fired even before his job began, because he didn’t know a tax haven even when he was living in one.

Correction

Fortunately for the sake of truth and accuracy, our friend, Panama attorney, Rainelda Mata-Kelly, (left) and a member of the Sovereign Society Council of Experts, read my raving and quickly straightened me out.

She wrote: "The argument that Panama is not a tax haven is based on the fact that we do not discriminate between nationals and foreign residents. We tax everyone the same. Our territorial tax system, which was reluctantly recognized by the OECD as a valid tax system, only taxes income produced in the country and this applies to everyone, whether they are Panamanians or foreign residents doing business in Panama."

By that accurate definition, Panama is not a tax haven, rather a country with a territorial tax system that benefits those who wish to base their offshore business there and avoid taxes on that business.

Long History

Tax havens, suddenly in the news because of President Obama’s demagogic attacks and OECD blacklisting, have been around for a very long time.

In ancient Greece, some Greek islands were used by sea traders as places to stash their foreign shipments to avoid a 2% tax imposed by the city-state of Athens on imported goods. In the Middle Ages, Dutch traders in the Hanseatic League set up business in London where they were exempt from Netherlands taxes. Prior to the Revolution, smart American colonials traded through Caribbean ports to avoid onerous British taxes.

What Is a Tax Haven, Anyway?

I’m glad I asked that question. Let’s hope I can answer it satisfactorily.

Simply put, a "tax haven" is a jurisdiction where taxes are levied at a low rate or not at all. In that sense, the State of Florida, where I live, levies no income tax, so it is a tax haven.

Tax havens benefit individuals and businesses worldwide because they create tax competition among governments -- and that means choices and cost savings.

Avoidance, Not Evasion

Geoffrey Colin Powell, a former economic adviser to the tax haven Channel Island of Jersey, claims: "What identifies a tax haven is the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance." (Keep in mind that tax avoidance is legal and smart. Tax evasion is illegal and dumb).

Some have suggested that any country that modifies its tax laws to attract foreign capital should be considered a tax haven. Others say the central feature is that tax haven laws can be used to evade or avoid foreign tax laws.

GAO Definition

In a 2008 report on the use of tax havens by American corporations, the U.S. Government Accountability Office never found a satisfactory definition of a tax haven but they suggested the following characteristics indicate a tax haven: 1) no or nominal taxes; 2) lack of effective exchange of tax information with foreign tax authorities; 3) lack of transparency in the operation of legislative, legal or administrative provisions; 4) no requirement for a substantive local presence; and, 5) self-promotion as an offshore financial center.

By some of these GAO standards, Panama might qualify be a tax haven.

Ring Fencing

What especially upset the anti-tax haven brains at the Paris mansion that houses the Organization for Economic and Community Development (OECD) was what they termed tax "ring fencing" -- meaning jurisdictions that offered favorable tax breaks to foreign companies and investors, but discriminated against locals by taxing domestic income.

Such two-tier tax systems have all but disappeared among smart tax havens who answered this complaint by abolishing all corporate taxes. Such zero tax regimes are now in place in the Isle of Man and the Channel Islands. By this measure Panama is not a tax haven.

OECD Nonsense

When the mighty G-20 met in London last month, these great statesmen, detached from reality, mounted their phony attacks on tax havens disregarding any of the definitions above.

For propaganda purposes, the G-20 leaders, (President Obama included), decided to define "tax haven" to suit their political and tax needs. Using taxspeak, it is what they say it is.

Thus tax haven now means any jurisdiction that does not automatically turn over to the U.S. IRS, or any foreign tax collectors, requested information concerning one of their citizens who dares to have an offshore bank account or to do business offshore – a nation’s bank secrecy and financial privacy laws, be damned.

Bottom Line

So now a "tax haven" is any place the tax hungry welfare states of the G-20 say it is.

But don’t let these left-wing tax hounds steal the right to define in this war of words.

You and I know that there are very strong moral, economic and political reasons for tax havens. Click on the preceding web link and Dan Mitchell of the Cato Institute will explain in even greater detail.

Thank you, Rainelda.

President Martinelli could use your talents in the new government. You made us realize that the Republic of Panama is, (and is not), a tax haven.

Either way, we still love Panama for no taxes, asset protection, maximum privacy and residence and citizenship for foreigners – and my apologies to Sr. De Lima.