Have you heard the catch phrases "taxation is theft" or "inflation is taxation"? While they are quite accurate in their depictions, there is a bigger picture to the theft perpetrated by the state… especially in the United States.

Let's put the taxes and quantitative easing aside for the moment (not a very long moment, but just long enough to clear a little space for the other forms of state sanctioned theft some of us might not even consider). When you are done reading what follows, throw taxes and QE back into the mix, and take a look at the entire scheme. If you aren't at the very least shaking your head at the dismal picture before you, then sweet dreams in your coma.

Policing for Profit & Civil Forfeiture

We have to look at the Federal Government fiscal and monetary policy to accumulate and protect our wealth. The Federal fiscal policy never changes. It is taxation, taxation, and more taxation. Most people have to work until June 1st to meet all of their federal and state tax obligations. United States citizens, unlike most sovereign nations, are taxed on worldwide income.

Many of you are in the United States who are in the process of filing your 2013 tax returns may discover that your standard of living is falling even as your income is going up because of taxation. The middle class is shrinking not expanding because of inflation and taxation policies.

Offshore non-U.S. resident trusts are becoming a popular planning vehicle for U.S. citizens, residents, and domiciles for a variety of reasons. Indeed, foreign trusts are a bit of craze for U.S. persons and citizens seeking to diversify their investment portfolios outside the U.S. dollar and outside the physical confines of U.S. borders. Such trusts can facilitate inter-generational wealth transfer planning, marital planning, and provide to the settlor a degree of asset protection planning really unachievable in the domestic U.S. setting given the generous anti-creditor lawsuit statutes in most offshore foreign jurisdictions. Please note that all irrevocable foreign trusts of this type are "grantor" trusts (if they have a U.S. beneficiary) for U.S.

Offshore non-U.S. resident trusts are becoming a popular planning vehicle for U.S. citizens, residents, and domiciles for a variety of reasons. Indeed, foreign trusts are a bit of craze for U.S. persons and citizens seeking to diversify their investment portfolios outside the U.S. dollar and outside the physical confines of U.S. borders. Such trusts can facilitate inter-generational wealth transfer planning, marital planning, and provide to the settlor a degree of asset protection planning really unachievable in the domestic U.S. setting given the generous anti-creditor lawsuit statutes in most offshore foreign jurisdictions. Please note that all irrevocable foreign trusts of this type are "grantor" trusts (if they have a U.S. beneficiary) for U.S.

Frequently I'll get asked at a conference or seminar about the issue of paying or not paying current income taxation on international earnings. Many people believe that if they generate money outside the US and do not repatriate that money, they owe no tax. But the issue is significantly more nuance and complicated and for most people investing offshore, this belief is just plain wrong.

As the HIRE Act begins to phase in, US Citizens and residents are already required to fill out the new 8938 form with their tax returns.  If you are reading this newsletter, you are likely to have one of these entities and be required to fill out the forms or face severe penalties including up to 5 years in jail.  Yes, 5 years in jail for failing to file the form.

In 2010, President Obama signed into law a jobs bill referred to commonly as the HIRE Act. The law provided federal funding for a variety of job creating activities (roads, bridges, police, etc). Title V of the act, referred to as the "offset provisions", created a new section of the tax code called the Foreign Account Tax Compliance Act (FATCA) for short.

For people considering moving assets offshore, the new withholding tax under FATCA (Foreign Account Tax Compliance Act) which was scheduled to go into effect January 1, 2013 was a major planning milestone. That deadline, however has now been pushed back to January 1, 2014 to give foreign banks more time to comply with their new disclosure responsibilities.

Another, perhaps even more insidious deadline, however, is the pending expiration of the Bush tax cut "extensions". The Bush tax cuts were initially scheduled to expire December 31, 2010. In the last few days before the end of 2010, the tax cuts were extended for two years.

Dear Readers,
Read below the fourth in a series of articles to be presented at an upcoming conference. This article is by Maurice Glazer, CEO of the Glazer Financial Network, who writes about how to buy real estate with your retirement plan.

If you are interested in more information about the Global Asset Protection Conference November 7-11, 2012, let me know and we’ll send over more details. Right now, enjoy the article by Maurice Glazer.

Michael Cobb
Editor and Publisher
www.HemispheresPublishing.com

The upcoming elections in the United States will cost you dearly.  No matter who wins, tax increases are certain.  By allowing the “Bush era” tax cuts to expire each party will blame the other for inaction.   But your taxes will go up.

If you have assets of as little as $1,000,000 these changes will have a huge impact, possibly increasing your taxes by as mush as 50%.   You stand to lose as much as half your net worth.   Do you really want to let the Uncle Sam take half of everything you’ve worked so hard to earn and save?