QUESTION: Martin,
in general I agree that Digital ID are a bad idea, if we thought identity theft was an issue, I can’t imagine the issues this would create.
However, if we ever hope to have a form of a direct democracy, wouldn’t this be useful to facilitate this end goal?
Jim M
ANSWER: I agree, a form of verifiable ID is necessary to secure a real democratic process. What is of greater concern is the digital currency. Once you eliminate cash, they control what you can buy, who you can donate to, and you can be prevented from leaving. Just as Gavin Newsom in California or New Jersey, if you leave their tyranny, they want an exit tax. How dare you flee from their abuse of power!
The United States federal government also has a significant exit tax that applies to certain individuals (“covered expatriates”) based on the current value of their assets, not on future earnings.
The Exit Tax (Mark-to-Market Tax):
This tax applies if you meet the definition of a “covered expatriate” when you renounce. It treats all of your worldwide assets as if you sold them for their fair market value on the day before your expatriation date. You calculate a hypothetical capital gain on this “deemed sale.” The first $821,000 (for 2024, adjusted annually for inflation) of this net gain is excluded. Any net gain above this exclusion amount is subject to capital gains tax (currently up to 23.8% including the net investment income tax) as if it were realized income on the day before expatriation.
Crucially, this tax is on the unrealized gains in your assets up to the date of expatriation. It is NOT a tax on income you expect to earn in the future after you are no longer a citizen. However, let’s say you started a company, they would argue what it would be worth if you went public and demand a tax on that fictional amount. This gets very complicated. You are being taxed on inflation – the depreciation of the currency over time, not purchasing power. The bottom line is that we all have a tattoo on our ass when born, declaring we are the property of the government for them to tax as an economic slave, and how dare you expect any rights or anything in return? Even Switzerland has a global wealth tax. You are taxed on the value of foreign assets annually based on currency fluctuations, no less.
So while a digital ID is ultimately necessary, the government will abuse every chance they get because they view us as economic slaves, not much different from the Slavery of the 1860s. Freedom can be bought, but only at a stiff price. Here is the head of the European Central Bank admitting they will control what you can buy or sell. If you are considering resigning your citizenship, it is advisable to consult an expert. This is much more complicated than just what appears on the surface.
