So, Americans have recently celebrated 15 years of FATCA. Fatca is one of the strangest laws ever to get in the books, but some say it was started in Romania. How? With a tax agreement between Nixon and Ceausescu, that exists to this day.
That’s right, if you do taxes as an American, or someone with American taxes on property, you are still subject to a Ceausescu era law that determines how you will be taxed. This law, partly designed to make it more difficult for Romanian to escape communism, laid the foundation for future taxation of US citizens abroad. And, it is still enforced when you file your taxes in Romania today.
As taxes are rising in Romania, and benefits are being cut, one asks, is this the craziest thing America has ever done? Some say the taxes started in the Civil War, as Lincoln tried to stop people from dodging taxes by moving abroad. However, they were only taxed in the US for their US income, so it’s not really relevant to FATCA and FBAR.
What is still relevant today is that accidents can happen when stupid people play with matches and other forms of fire. The cigarrette wasn’t invented until after the civil war (by a former slave owner who had fought for the confederacy) but people could get pretty stupid with cigars:
“A stupid soldier belonging to the Roundhead regiment at Hilton Head, met with a shocking death the other day. He found in the woods an unexploded shell, and, sitting astride of it, lighted the fuse with his cigar. It burst cutting his hands off at the wrists, and tearing out his stomach. he languished two hours after the occurence. Eight others were slightly hurt.” St. Cloud Democrat., January 02, 1862, (Minn)
Move over second hand smoke, we have second hand explosions. I wonder if that stupid soldier’s descendants decided to start taxing Americans abroad on non-US income. If tax trends in the US and Romania continue, we’ll soon be taxed for Second Hand income.
Well, fatca and FBAR are not meant to just, but they are meant to bring in money. What other crazy things have Americans done for more money?
“Mrs Vena Delmar of New York offers to lease her husband for $5,000 dollars per year. Lots of wives have had the idea for a long time, but Vina was the only one who seems to have had the nerve to advertise it.” The Coconino sun . (Flagstaff, Ariz.), 01 July 1921.
Did a lot of wives in America have the idea of leasing out their husbands? What does that involve, exactly? Does the client renting from wife get a share of the husband’s income? Does the renter get to nag the husband? Exactly what is included in the deal?
Contracts like this might seem strange, but tax law is even weirder. While taxes are generally going up on things like hybrid cars and houses and appartment, taxes on old appartments and electric cars are going down. Perhaps this is confusing on purpose, to give more work to accountants.
Budget changes might affect those seeking Romanian citizenship by descent. Recent adjustments to the law said that victims of the second world war might still be eligible for compensation, but their children will no longer be included in compensation. This seems to make sense, as Romania left the Axis over 81 years ago.
Now, perhaps it is time to repeal Ceausescu era laws.