This eRumor appears to be an unproven conspiracy theory that warned of the possible ramifications of the passage of the Hire Incentives to Restore Employment Act along with the Foreign Account Tax Compliance Act. TruthOrFiction.com has found no evidence at this time as to how the enforcement of this act will effect the U.S. Dollar.
We will post findings here if anything develops.
We found the possible source to this eRumor on the Victory Women In Development Association (VWIDA) website. The page links this allegation with a story about gun control legislation and the lobbying efforts of National Rifle Association. How the two topics are related remains a mystery.
Hire Incentives to Restore Employment Act & Foreign Account Tax Compliance Act
H.R. 2847, the Hire Incentives to Restore Employment (HIRE) Act is real and was signed into law in 2010. In this bill was tacked the Foreign Account Tax Compliance Act. This law, known as FATCA, makes U.S. residents accountable for money invested in foreign banks by requiring the offshore financial institutions to provide a 1099 form to the Internal Revenue Service for their American customers. This according to a July 28, 2013 article by The Hill, a new service that reports on the business of the U.S. Government in Washington, D.C.
The article said, "Under FATCA, banks will be forced to submit information on total assets, account balances, transactions, account numbers and other personal identifying information. This intrusion goes way beyond a 1099 and would not be accepted or tolerated by Americans living in United States. " Noncompliance will result in huge financial penalties and sanctions to the foreign financial institutions.
The Hill added that neither Congress, the Internal Revenue Service nor the U.S. Department of Treasury are certain how much FACTA will generate in terms of revenue in taxes. The article said that President Obama "suggested $210 billion over ten years," and $800 billion over the course of ten years was projected by unnamed "others."
It is not really known what ramifications this law will have on U.S. residents with funds in foreign banks or if foreign banks will cooperate with the law. The Hill also reported that the U.S. demands on foreign banks to provide client information may "violate their own country's laws and constitutions."