Taxing exported money

[skydemon2 0]

With all the US currency shipped out of the country by Western Union etc. should there be a 50 % tax on all money sent out of the country? By individuals.

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[nanook 1]

Nope, it will devalue our Dollar considerably.

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[lawrocket 3]

How would you track it? '

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[Andy9o8 2]

On a policy level, I like the idea; the US does have an interest in keeping its money circulating at home, rather than being transferred out of the US economy. But, as Jerry (Lawrocket) notes, there's probably no way to reliably track it. Even if you clamp down harder on Western Union and similar types of transactions, people will just avoid it with informal financial networks such as the Hawala system.

FWIW, I can think of one way the US govt already deals with this concern through taxation: under Federal law, when a US citizen dies leaving a non-US citizen surviving spouse, the surviving spouse's inheritance is taxed at a higher rate than the rate applied to surviving spouses who are US citizens. (The logic being, that once the US citizen dies, the non-citizen spouse is presumed to have a greater likelihood to move back to her home country, taking her inherited assets with her, thereby removing the inherited assets from circulating within the US economy; so the govt tries to offset this loss through a targeted tax.)

[NCclimber 0]

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With all the US currency shipped out of the country by Western Union etc. should there be a 50 % tax on all money sent out of the country? By individuals.

Only if it's refundable (w/ interest) when it's shipped back into the country.

[nanook 1]

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On a policy level, I like the idea; the US does have an interest in keeping its money circulating at home, rather than being transferred out of the US economy.

Personally, I think that's a dangerous policy. Taxing property and goods coming and leaving the country is one way of having some control of our value, but when you actually tax money itself, it makes the Dollar less desirable. Considering we are a "floating economy", another country's want for our dollar is the backbone to our value.

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[Casurf1978 0]

Let's say hypothetically speaking I want to invest outside the US or transfer money to overseas bank accounts. I pay taxes here so I should then pay taxes on money I send overseas. It just doesn't make sense. If people want to transfer money overseas let them. Putting restrictions on our currency would only hurt it in the long term. Might as well convert my money to another currency then send it. Like someone said it would make our currency less desirable. Either way it's a global economy and if your major concern is the dollar 'leaving' our economy it will make it's way back. I know in some central american contries the dollar is widely accpeted even in small remote towns. Hell I've been to stores where prices are listed in local currency and USD.

[kallend 2,148]

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Let's say hypothetically speaking I want to invest outside the US or transfer money to overseas bank accounts. I pay taxes here so I should then pay taxes on money I send overseas. It just doesn't make sense. .

Misconception #1 - that government actions have to make sense.

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