When we started this Hey Cluj, it was meant to be a magazine about Cluj in English, not just another blog-rag for expats. However, we have heard so many American accents in Cluj that we figured, yeah, FATCA [sic] is not just an expat issue, it’s a Cluj issue.
Roumania signed a tax treaty with America in the Ceausescu-Nixon years. Yup, everyone’s favourite president was there, laying the foundations for stealing the data of ordinary Romanian and American citizens. Molotov-Riventhorp pact 2.0 suggests that Americans who live in Roumania can be taxed for up to ten years after renouncing their US citizenship. It also has guidelines on how to divide your tax liabilities, so it isn’t as bad as the secret treaty that divided Eastern Europe.
Okay, so anyway, what does this have to do with Trump? Well, all these tax treaties were toothless until, during the Obama administration, some lady in Congress decided that all Americans abroad were evil tax dodgers and any bank who accepted their money had to be treated like a criminal enterprise. Thus, the FATCA act was born, or the Find And Treat like Crap Americans abroad. Why couldn’t they call it the Call Away Ceausescu Act? or the Truman Capote Act? Now, everyone is like, what’s your name, and if I try to get a job in banking…. okay, I digress.
This year, Republicans Abroad convinced Donald Trump to promise to end double taxation. (You hear that Democrats Abroad? Your competitors actually care about expats, that is why you are losing voters). This promise is on his platform.
Why shouldn’t you tax your expats? Because, like, duh, no other country in the world taxes their citizens for worldwide income when they don’t even live in the country. (North Korea tries to, but they don’t really count. Maybe ISIL does too, who knows.)
So, now with Republicans controlling both houses in congress, and with a bill on its away even before they take office, it is likely that this will be
- It will be easier for Americans abroad to open bank accounts
- Americans abroad will save money on accountants
- Americans abroad will be able to save money on retirement.
- More investment opportunities will be open to Americans abroad.
- And Fatca might just get her name back!
If you have had trouble with your bank in Roumania, and you are somehow labelled as a US person, there is hope that come January, your financial life is about to improve.