Matt Welch has a few warnings for Americans of all political stripes who threaten to come to Canada if the wrong politico gets elected president this year:
* Revenge-minded border cops. Casually crossing our northern border with a family of four, as I attempted recently, is no longer a routine matter. Investigators I know who have worked with Canada’s Border Services Agency say that customs officials are ramping up their screening of Americans in advance of a possible November onslaught. And just maybe, after 15 years of U.S. border enforcers giving Canadians a harder time, followed by 12 months of a xenophobic presidential campaign, we might be getting some payback.
* You better like Canadian musicians. Americans can be forgiven for losing track of who among their beloved North American entertainers might say “oot and aboot” after a few Mooseheads. But sitting at one of Toronto’s roughly 1,000 sports bars is a grueling reminder that Canada’s Broadcasting Act, which requires that at least one-third of the content at commercial radio stations emanate from musicians with maple leafs in their passports, is a make-royalties program for the Rushes of the world. If you think American classic rock stations are repetitive, get used to side 1 of “Moving Pictures.”
* You can run from America, but you cannot hide. Think living in Montreal or Vancouver frees you up from the long arm of the Internal Revenue Service? Think again! There are two countries on this whole planet that require federal income tax filing from its nonresident citizens. Eritrea, not particularly known for its good governance, is one of them. Uncle Sam’s the other.
It gets considerably worse from there. Because of a putrid 2010 law called the Foreign Account Tax Compliance Act (FATCA for short, because Washington legislators are nothing if not subtle), U.S. citizens and their spouses who hold more than $10,000 total in non-American financial institutions must file annual disclosures listing the maximum exchange-rate value of each and every such account during the previous year. If you don’t comply, you face steep fines and even jail time.
Ostensibly aimed at fat cats, this law instead has punished the majority nonrich among America’s estimated 8.7 million expatriates. Not only does FATCA impose costly paperwork on individuals, it also requires overseas financial institutions to act as Washington’s international collections muscle, mandating that they seize and transfer to the IRS 30% of deadbeat Americans’ assets. To the surprise of no one who understands basic incentives, foreign banks have been dropping American clients like sacks of flaming garbage.