FILLING THE TAX LOOPHOLE

The USA has a mature regulatory environment governed by its Securities and Exchange Commission. These regulations mean that we are not licensed to manage portfolios for US clients.

Important change in policy regarding clients who are resident, domiciled or linked to the United States by property or asset holdings". They were told the bank had "no choice" but to "cease acting as your investment manager

Unfortunately we cannot offer an equivalent service from within Lloyds Banking Group." Clients have been advised to transfer their assets

Lloyds Banking Group is ditching American customers based in Britain pending a crackdown on international tax evasion planned by President Barack Obama

Until the new rules are properly explained, we don't know how expensive they will be to implement. But it's clear that Lloyds believes that any extra cost to the system will be too much when it comes to the mass affluent

So there you are, this is the beginning.

Our Dear Leader has a plan to close the international tax loophole (any law they don't like, is a loophole now). And this is the beginning of the coming economic catastrophe.

The new law hasn't been passed yet, but the overseas banks are starting to dump American business accounts, and personal accounts. The overseas banks would rather lose the money then pay whatever penalties the Administration might come up with in the future. Especially since the Administration seems to like to back date their laws now, when going after money (remember AIG).

This is the same tax law that major Corporations are already saying will force them to move their operations completely overseas. Microsoft said it would be one of the first to move, taking over 30,000 jobs with them.

On paper, I'm sure it looks like they will increase revenues. In reality it will only cause them to drastically decrease. Cause and effect, a pretty simple rule.

Our IRS already has a war going on with the Swiss banks. We want them to open their books up so that we can look for hidden revenue from US citizens. I don't think that is going well.

I can only imagine how much it will cost for new overseas government apparatus to track down violating US citizens and rouge Corporations. I heard a number of 800 new IRS agents just for this operation.

I do know it will cost a lot of good will from our allies. And it will cost a lot of Americans their jobs, when their company relocates to India to avoid the new tax code.

It will create more IRS agents though. Isn't that nice.