I doubt it but they will hold onto your cash if you attempt to move it until they’re sure its not subject to further taxes.
What i get out of this is the daily flow of American capital held by individuals will,on a daily basis,be subject to 30% withholding which may or may not be kept by the govt depending on its tax liability if any. The results are twofold (though with many many ramifications).
First,the govt will show way more cash on their books thus hiding their own poor finances. It will cycle through on a daily basis and we’re probably talking significant funds.
Second they will be discouraging Americans from having funds in foreign banks which is tantamount to a trade war. If Americans pull their cash from these banks then those banks will see their tier one or equivalent measure fall.
How would our government react if measure like these were enacted overseas? If the Saudis decided on special taxes for holdings in foreign countries so all those princes started dumping American stocks? This feels extremely isolationist to me.
Exactly. There is absolutely nothing different about this compared to what Enron did. Cooking the books to make it look better to prop up bond sales. After these taxed kick in look for them to shout, "Look the deficit is going down." without any explanation. Or, at least, they will try to hide what they are doing. It's designed to show fiscal improvement by November.
These people are criminals in every sense of the word.
This law may impact foreign investing in this country. An important tenet of foreign investing is the ability to move capital when required. Foreign individuals and corporations will not invest if they cannot access capital when necessary. The law allows exceptions so political connections will matter, another negative aspect of crony capitalism. I also think that foreign governments may retaliate by withholding US investor money. In this bill and other proposed bills and existing legislation, I see a potential for an ugly trade war.