I don't pretend to be a political pundit, and frankly, many of those who do make such claims are about as reliable in their predictions as stock analysts. Nonetheless, as an attorney who represents businesses, entrepeneurs, and high-net-worth individuals, I do think the recent election results have the potential, if those on the left carry out their desires, to affect businesses, entrepreneurs and capitalists--as well as capitalism in general. Here are some of the effects you might see:
1. The curbing of civil liberties infringement in the name of anti-terrorism. One of the possible positive outcomes of these elections is that the now-split government in Washington will either roll back or at least curb the last few years' intrusions into privacy and civil liberties. The Bush administration, in the name of the War on Terror, created broad powers to pry into electronic communications, banking and other areas in which U.S. citizens typically expected privacy. The American Left, for all of its flaws, at least tends to value some issues of privacy, and is leary of Big Brother. Hopefully, the new Congress can at least stop if not roll back the Bush Administration's incursions.
The unfortunate thing about Leftists, however, is that though they think Americans deserve the freedom of privacy and civil liberties, they believe that freedom stops--and good Leftist Government should begin--when the Left does what it knows is to be in everyone's best interests. Here are some of the more worrying possibilities that capitalists may face:
2. Socialist Healthcare.
Prior to coming into power, some of the bolder Democrats were already beginning to voice the same old story about socialized medicine--termed "Universal Healthcare." Like all free things promised by the Left, it's not free; just paid for by someone else. Potential targets feeling the pain of this leftist scheme could be doctors, insurance companies, and small businesses that are asked to subsidize the Left's generosity to its voters.
3. Paternalistic Intrusion into Personal Choices.
For all the Left's talk of civil rights, those rights stop when the Left can make better choices for the individual than he can make for himself. Leftist pseudoscientists, the media, and leftist politicians are slowly preparing Americans mentally for the once-ridiculous idea that the government should financially penalize us for the choices we make with which it doesn't agree--such as the foods we eat. Businesses which sell disfavored products or items--that is, items from which the Left wants to protect individuals from their own choices--should be prepared for attempts at penalty taxes and investigations of a type once reserved for the tobacco industry.
4. Free Breakfasts.
Entrepeneurs, businesses and capitalists may feel the "tyranny of the majority" with the Left attempting to provide "free breakfasts"--literally--by stealing from the most productive members of our society. Recently, I read an article by someone with an apparent activist bent who reported in the media that studies recommended that all schoolchildren--not just poor ones--should be provided free breakfasts, because they'd eat healthier than they'd eat at home.
This type of thinking is the mantra for Leftists. There are many disturbing aspects about this study. First, that it would use the word "free" instead of subsidized, because that's what it is. It would only be "free" because parents of public school children--regardless of how wealthy they might be--would have their kids' food paid for by taxpayers--regardless of their own financial status or whether they themselves had children to support. Second, it reaffirms Leftist thinking that the government should get involved with individual choices because "it can do better." Finally, it's unclear exactly where the Leftists would attempt to extract the money for this. "There's no such thing as a free lunch?" What about a free breakfast?
5. Heightened Distrust of Entrepreneurs.
Finally, business owners, capitalists and entrepeneurs need to prepare themselves for a Leftist mentality that is derisive of them and refers them as "corporate America" as if that term is itself a self-evident term of derision. Be prepared to deal with individuals who treat with suspicion all of the following:
1. Attempts to make the most efficient and profitable operation possible (the Left says you should pay everyone as much as possible and then see if you can actually make your business work).
2. Attempts to pay only the smallest amount of taxes you're legally required (the Left calls that "tax loopholes").
3. Attempts to protect your assets in foreign or offshore accounts (the Left--and even some on the Right--think nothing good can come from investing or protecting your money outside of this nation).
If you asked me what one step you could take to hedge against some of the uncertainty of the Left, I'd advise you to "have a plan B." Good business owners and entrepeneurs know that the unforeseen can sometimes happen. Sometimes you need a backup plan in place. Now, I believe, is that kind of time. The dollar is weak, freedom in our country is being restricted like never before, and the new government coming looks scary. Speak to your financial advisor, your tax advisor and your legal advisor. Look at investing offshore. Look at moving some assets offshore. Look at investing in foreign properties in nations that still respect business and freedom.
That's the way things look from where I stand.
Sabtu, 11 November 2006
Minggu, 05 November 2006
Second Passports
After discussing our meeting with a St. Kitts solicitor in my last post, I thought it might be helpful to discuss the purposes and benefits of a second passport, as well as try to answer some questions you might have about a second passport.
1. Second Passports don't require you to give up your primary citizenship. You can be a dual citizen of the United States and another country (unless that country's laws state to the contrary). If you were, say, to obtain a Panamanian passport, you'd still be a citizen of the United States as before. You've not had to give up your rights as a U.S. Citizen. You've just now obtained the rights of citizenship in a second country.
2. Conversely, Second Passports don't let you escape United States obligations. As a U.S. citizen, you're obligated to pay federal income tax on income earned anywhere in the world. Though there are some credits you'd be entitled to receive, this is the general rule. Just as your second passport doesn't strip you of your U.S. rights, it also doesn't alleviate any of your obligations in the U.S. If you truly wanted to escape those obligations (such as high taxation), you'd have to renounce your U.S. citizenship. Before you do that, you should talk to a legal specialist.
3. Second Passports allow you to travel more anonymously. One of the biggest benefits touted of second passports is that they would allow you to travel under a different nationality, when that would be to your advantage. Specifically, for U.S. citizens, this would allow you to go to places where being an American might carry a stigma, and represent yourself as a citizen instead of, say, St. Kitts. This is similar to what many backpackers in Europe had done for years when they would purport to be Canadian so that they wouldn't carry the "American" stigma. Though this has some validity, this alone shouldn't be your motivation for a second passport. Ask yourself: is it worth paying thousands (or hundreds of thousands) of dollars just to make a Frenchman be your buddy? If you're a white man with a Christian name who travels to Pakistan, would they care that you claim to be from Grenada rather than the U.S.? Would it not be simply easier and cheaper not to travel to those types of places?
4. Second Passports give you traveling privileges of your second country. This reason has more advantages. In many countries, you must have not only your country's passport, but a Visa from the host country. However, the host country often waives the visa requirement to some of its closest allies. Also, even entry, duty and residency requirements are lessened among some allied countries. For example, if you had a St. Kitts passport, you'd be given easier travel all around the Caribbean, since most of the Caribbean countries are part of a cooperative known as Caricom (sort of a Caribbean Union), which means that when you went through Customs and Immigration, you'd be going through the shorter line designated for the "locals." Though this, in itself, might not justify purchasing a second passport, it would sure be a nice perk.
5. Second Passports can make you more "anonymous." Though there are many dubious reasons why someone would want to become anonymous (e.g., running from a crime), many folks, especially those who are paranoid of our government, like the idea of giving themselves a lower profile with a second passport. This would, theoretically, occur in two ways. The first would be that you'd be less likely to register if using a second passport. For example, if the airport authorities were looking for U.S. Citizen Wesley Deaton, I could pass through with my St. Kitts passport in my name. With computer sophistication being as high is it is, I don't know if that's realistic.
The second way would be by using a different name on your second passport--I'm told, for example, that individuals will often use their mother's maiden name as their own on the passport. So in the example above, if the airport authorities had U.S. Citizen Wesley Deaton on some sort of "list," when Panamanian Citizen Wesley Dycus appeared, he'd pass through undetected. Two caveats about this: first, I can't tell you in what countries this would be legal and in which countries this would be illegal. More importantly, I can't advise you (because I don't know) which passport programs allow assumed or changed names. If this is something that interests you, you'd need to contact an attorney or solicitor specializing in obtaining second passports.
6. A Second Passport gives you the right to live and have citizenship rights in another country. The most basic, yet most important, aspect of a second passport is that it allows you to live in the country of the passport. This, for many people, is what makes the passport so important. Perhaps the individual simply wants to try life in another locale (if you've endured decades of cold winters, moving to Panama or St. Kitts sounds pretty inviting, doesn't it?). In other cases, individuals want to escape persecution--or at least be able to escape, if need be. In countries offering second passport programs, for example, many of the applicants are wealthy former citizens of either Hong Kong or Taiwan, who fear the impending power of the Chinese state. In addition, many Americans--often who have financial wealth--also fear our government's increasing sue of coercive power, surveillance and taxation, and want a "Plan B," in case things get bad enough.
Simply moving and living in another country legally is not always simple. Often, countries require visas of anyone wanting to live there for more than 30 days. Furthermore, as an outsider, it's not always easy--or legal--to obtain gainful employment. In Belize, for example, newcomers are not legally allowed to obtain jobs for one year after moving there.
In short, a second passport allows the holder to move, without barriers, inside the adopted country, without all of the barriers often placed on outsiders.
1. Second Passports don't require you to give up your primary citizenship. You can be a dual citizen of the United States and another country (unless that country's laws state to the contrary). If you were, say, to obtain a Panamanian passport, you'd still be a citizen of the United States as before. You've not had to give up your rights as a U.S. Citizen. You've just now obtained the rights of citizenship in a second country.
2. Conversely, Second Passports don't let you escape United States obligations. As a U.S. citizen, you're obligated to pay federal income tax on income earned anywhere in the world. Though there are some credits you'd be entitled to receive, this is the general rule. Just as your second passport doesn't strip you of your U.S. rights, it also doesn't alleviate any of your obligations in the U.S. If you truly wanted to escape those obligations (such as high taxation), you'd have to renounce your U.S. citizenship. Before you do that, you should talk to a legal specialist.
3. Second Passports allow you to travel more anonymously. One of the biggest benefits touted of second passports is that they would allow you to travel under a different nationality, when that would be to your advantage. Specifically, for U.S. citizens, this would allow you to go to places where being an American might carry a stigma, and represent yourself as a citizen instead of, say, St. Kitts. This is similar to what many backpackers in Europe had done for years when they would purport to be Canadian so that they wouldn't carry the "American" stigma. Though this has some validity, this alone shouldn't be your motivation for a second passport. Ask yourself: is it worth paying thousands (or hundreds of thousands) of dollars just to make a Frenchman be your buddy? If you're a white man with a Christian name who travels to Pakistan, would they care that you claim to be from Grenada rather than the U.S.? Would it not be simply easier and cheaper not to travel to those types of places?
4. Second Passports give you traveling privileges of your second country. This reason has more advantages. In many countries, you must have not only your country's passport, but a Visa from the host country. However, the host country often waives the visa requirement to some of its closest allies. Also, even entry, duty and residency requirements are lessened among some allied countries. For example, if you had a St. Kitts passport, you'd be given easier travel all around the Caribbean, since most of the Caribbean countries are part of a cooperative known as Caricom (sort of a Caribbean Union), which means that when you went through Customs and Immigration, you'd be going through the shorter line designated for the "locals." Though this, in itself, might not justify purchasing a second passport, it would sure be a nice perk.
5. Second Passports can make you more "anonymous." Though there are many dubious reasons why someone would want to become anonymous (e.g., running from a crime), many folks, especially those who are paranoid of our government, like the idea of giving themselves a lower profile with a second passport. This would, theoretically, occur in two ways. The first would be that you'd be less likely to register if using a second passport. For example, if the airport authorities were looking for U.S. Citizen Wesley Deaton, I could pass through with my St. Kitts passport in my name. With computer sophistication being as high is it is, I don't know if that's realistic.
The second way would be by using a different name on your second passport--I'm told, for example, that individuals will often use their mother's maiden name as their own on the passport. So in the example above, if the airport authorities had U.S. Citizen Wesley Deaton on some sort of "list," when Panamanian Citizen Wesley Dycus appeared, he'd pass through undetected. Two caveats about this: first, I can't tell you in what countries this would be legal and in which countries this would be illegal. More importantly, I can't advise you (because I don't know) which passport programs allow assumed or changed names. If this is something that interests you, you'd need to contact an attorney or solicitor specializing in obtaining second passports.
6. A Second Passport gives you the right to live and have citizenship rights in another country. The most basic, yet most important, aspect of a second passport is that it allows you to live in the country of the passport. This, for many people, is what makes the passport so important. Perhaps the individual simply wants to try life in another locale (if you've endured decades of cold winters, moving to Panama or St. Kitts sounds pretty inviting, doesn't it?). In other cases, individuals want to escape persecution--or at least be able to escape, if need be. In countries offering second passport programs, for example, many of the applicants are wealthy former citizens of either Hong Kong or Taiwan, who fear the impending power of the Chinese state. In addition, many Americans--often who have financial wealth--also fear our government's increasing sue of coercive power, surveillance and taxation, and want a "Plan B," in case things get bad enough.
Simply moving and living in another country legally is not always simple. Often, countries require visas of anyone wanting to live there for more than 30 days. Furthermore, as an outsider, it's not always easy--or legal--to obtain gainful employment. In Belize, for example, newcomers are not legally allowed to obtain jobs for one year after moving there.
In short, a second passport allows the holder to move, without barriers, inside the adopted country, without all of the barriers often placed on outsiders.
Langganan:
Postingan (Atom)