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Something is wrong with this picture

April 18, 2012
Madrid, Spain

The US Passport Act of 1926 is an obscure piece of legislation that was enacted decades ago when the idea of passports starting catching fire around the world.

Subsequently absorbed into US Code Title 22, the law was originally intended to authorize and issue passports for US citizens to travel abroad.

Several years ago, the law was modified to provide the Secretary of State with the authority to revoke or deny a passport to any US citizen convicted of engaging in immoral acts with minors overseas.

Until now, this has been the only instance of excluding a US citizen from travel abroad. But if Senator Barbara Boxer gets her way, there’s going to be one more.

As part of Senate Bill 1813 (known as MAP-21), Congress has inserted language that would oblige the Secretary of State to revoke or deny a passport to any US citizen that the IRS Commissioner deems as having ‘seriously delinquent tax debt.’

For the purposes of MAP-21, ‘seriously delinquent tax debt’ is defined as an amount in excess of $50,000 in which a notice of lien or levy has been filed in public records.

Bear in mind, this is strictly an administrative procedure; there is no due process. By comparison, even pedophiles go in front of a judge before losing their passports.

Something is wrong with this picture.

News of the 1676-page bill has broken across mainstream media outlets. Forbes, Fox Business, the Atlantic, Businessweek… everyone is reporting on this now.

So far, though, no one in Washington has shown any attention of backing down.

I’ve taken the time to actually read the entire bill myself… I wanted to ensure that I understood it fully before telling you about it. And believe it or not, there are even dumber provisions within.

For starters, in what may be one of the most depraved Big Brother moves on record, section 31406 of the bill makes it mandatory for ‘black box’ event recorders to be installed in every new passenger vehicle starting with model year 2015.

Section 31504 requires the development of special alarm systems designed to remind drivers that there are other passengers in the vehicle. Duh.

Then there are provisions for more taxpayer funding to subsidize the massively loss-making Amtrak… plus calls to develop more national, regional, and state-owned railways across the country.

Perhaps most important, though, is Title II of the bill– ‘Stop Taxhaven Abuse.’

Long story short, if the US government decides in its sole discretion that a foreign jurisdiction is impeding tax enforcement, Uncle Sam can shut them out of the US financial system, no questions asked.

It’s just another measure to turn foreign banks into unpaid spies of the federal government… and limit financial freedom for US citizens.

This is a bully move, plain and simple. Most of the global financial system depends on US banks for correspondent accounts. When you wire money from Cambodia to Brazil, for example, the funds pass through New York.

But these kill switch provisions are actually on very shaky legal ground. As several banker and attorney friends of mine in popular offshore jurisdictions like Panama and Labuan have told me, the new bill violates a host of trade agreements.

Moreover, it may prove to be the final nail in the coffin for US dominance in global banking… it’s almost as if Congress is daring the international community to come up with a better alternative.

As China opens its currency and economy more and more each day, it seems painfully obvious that a new solution is coming soon.

Meanwhile, US citizens would do well to start focusing on taking action while the window is still open. This involves seeking a second passport (lest you have yours revoked), moving gold out of the country, and establishing a foreign bank account.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

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Comments on this entry are closed.

  • John Lloyd

    Simon, you seem surprised by these steps…Why? You think nation-states are going to sit back and  let their wealthiest citizenry dodge taxes. It’s not in their interest. The nations of the world will collude as they have already begun too. Flag planting won’t do any good in a one world order…And that, I’m afraid, is exactly where we are heading….

  • Jay

    Thanks for sharing the entire provision, Simon. Leave it to the mainstream news to deflect attention from the worst provision–the mandatory spy boxes in every car (which must be paid for by the victim), by focusing attention on a nearly as bad passport-revocation provision.

  • steve ward

    i like the railroad, mainly because the roads in most places are crazy backed up with car’s etc. Yet why is this in a bill for tax debt? I dont get it nope not at all, I agree that the usa GOVERMENT<—- not the country or people is on the down turn.

  • Hiday_happy

    dont talk about them..i hate to hear..

  • Dandy Dale

    Three years a go a Corvette that had been traveling over 110 mph, just minutes before, hit a Jeep and killed a 20 year old.  It would he likely been the 20 year old fault for pulling out of his own driveway.  The owner of the vette was caught trying to remove the black box from the car, at the storage lot.  The box was used in court to prove the case.

  • Msp

     Simon Black your wrong. Anytime a noncustodial parent falls more then 1,200 behind in child support they loose there passport. Someone who is an “authority” on this subject should know this.  Excluding a US citizen from travel abroad is common practice in this regard. In most cases it happens within 90 days of failure to pay.

  • Pjkym

    Thanks for the heads up.  Note to self; don’t buy cars newer than 2014.

  • Notmyemail

    This isn’t about “wealthy citizens dodging taxes.” This is about preventing people who are delinquent on their mortgages or student loans from vacationing in Mexico or Europe. This is about turning the Homeland into a huge debtors’s prison.

  • Hiday_happy

    great article

  • budzy1911

    Sadly this is a slippery slope.  People will say – ‘Well yea – tax cheats shouldn’t be allowed to leave’.  What is next?  People that owe money on Library books?  Give them an inch and they will take it all.

    I also see the black box as a way to again snoop in to our lives.  Couple this device with a GPS and they can see where you have been.  I am sure they are even thinking of a way to scan cars without actually connecting to them. 

  • opionatedperson

    I’m an automotive engineer. There is already a black box in your car. AND in Canada it has already been used in court against a defendant. This box has been there since the late 80′s. As for the warning to the presence passengers it is more for the restraints system. So not buying a car past 2014 does you no good. I recommend going back to the 70′s. 

  • Streeter

    Drive the tollway East of Denver. At the end of the month, the State computer sends you a bill for your toll fees. Time, date, toll place, type of vehichle, license state, number and registered owner, elasped time between toll cameras (aka average speed). And we’re worried about a black box ?

  • Mmushrooms

    I’m just sayin,’ since very recently purchasing 800 patents from Micro;Face and Twit,not only follow me everywhere I go,but are continuously trying to keep me from logging on the net,and have removed one of my tools for forwarding.FacecyberchiefisaformerfederalprosecutorwhosenameIwon’tdivulge.

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