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by toomuchtodo 762 days ago
Again, it’s just a construct in a system. The rules can be changed at by time, and a piece of paper isn’t going to matter to a nation state political system.

I have a trust (several, actually), and I still know better that it is permitted to exist in its current incarnation, not a perpetual, immutable right or iron clad guarantee.
1 comments
throwaway11460 762 days ago
Yes, sure - but Monaco, Luxembourg, Switzerland, Liechtenstein etc is definitely not going to adopt the rules just because US did.

They will do the exact opposite - triple down, take this new enormous opportunity and develop hundreds of new ways to offer US people safe haven for their assets. Thousands upon thousands of new startup consultancies charging just few % fees will be founded and every wealthy person in the US will have to turn off their phones and stop checking the inbox because of all that cold calling and emailing these people will do.

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toomuchtodo 762 days ago
Switzerland conceded to US FATCA reporting. Whomever has the most force wins. I don’t blame you if you’re wealthy and you take a calculated risk strategy (can’t take the monkey brain out of the human), just don’t cry when you fail at evasion.

Major corporations can’t withstand minor ransomware operators. What makes you think these jurisdictions can withstand superpower nation state efforts?

TLDR good luck, have fun.

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throwaway11460 762 days ago
Reporting is nice but doesn't change anything about the problem. OK so the US knows you are a beneficiary of a trust fund in Switzerland - what can they do about it? It's not you, so they can't tax the wealth. They can tax the income you get from that, but that means the wealth tax mission has failed.
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toomuchtodo 762 days ago
You just want to argue, so I’m going to pass. I’m not here to change your mind, it doesn’t matter if I do unless you’re a legislator or decision maker in government.
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throwaway11460 762 days ago
No, I don't want to argue, I would like to understand how can anyone think this kind of idea can be implemented in the real world. I just don't see a way.

BTW I was never talking about evasion. No need for that. The wealthy people in government/legislature will never make it bulletproof, there's always a legal way - you might not get to keep 100% but you certainly won't pay 90-100%.

I don't even think it can be made bulletproof - does this mean corporations and funds are limited to 1B in size? What if it's a partnership without exact equity stakes? What if there are multiple people? What if some of them die, and later some are born? What if I get a non-equity obligation from a bank - "transfer all your wealth to us and we will pay out whatever you need up to X/year"?

And now, after you have done this and there are no more superwealthy and no more big corporations and funds, the 10th richest Chinese billionaire comes and buys everything all around the US - job well done? Or does this mean total economic isolation too?

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