U.S. passports: Given and Taken

I came across an interesting post on Matador Network about U.S. passports. The writer mentions how she always thought that U.S. passports were a right not a privilege. I also have to agree that those were my thoughts as well. My past experience in obtaining a passport was simple.  All I had to do was take my birth certificate, an identification card, and money, fill out a form and submit it at the courthouse in my city.

But it turns out that just as you can receive a passport the government can revoke it for many reasons. Some of the reasons are…

• Owing more than $2,500 in back child support
• If your being investigated
•  Are found to be a drug trafficker
•  Considered a national threat

And recently, there’s a new law being proposed before the House of Representatives. The new law can suspend your movement beyond U.S. borders if you owe back taxes. The government can refuse to grant, renew, or revoke any U.S. citizen’s passport if you owe the IRS $50,000. You also don’t need to be found guilty, the IRS can just allege charges and it’s enough for the government to suspend your movement.

I didn’t think this new law could affect many Americans, but it turns out it definitely can. Data from the IRS found almost 300,000 federal employees and retirees together owed $3.4 billion in 2010. I also found it amusing how employees of the House of Representatives along with the Senate owed over $2 million. Even Obama’s staff owed thousands of dollars in back taxes.

It’s also not too difficult to rack up $50,000 in back taxes. For example, if you make $40,000 in taxable federal income and decide not to pay taxes it can take almost 5 years (with fee penalties) to accrue more than $50,000. It’s even more effortless for a high-earner making over $200,000. In a span of just one year a high-earner can end up owing $50,000.

There are some people criticizing this law proposal saying that it violates Article 13 of the Universal Declaration of Human Rights. Article 13 states that everyone has the right to leave any country, including their own, and to return to their country. The Declaration of Human Rights arose directly from the experience of the Second World War and represents the first global expression of rights to which all human beings are inherently entitled. It consists of 30 articles which have been elaborated in subsequent international treaties, regional human rights instruments, national constitutions and laws.

 After reading more into this issue I found out that the U.S. is one of the only countries to tax its citizens on income earned while living abroad! I find that outrageous and not just because I’m an international business major. Also it’s not easy filing taxes abroad because there’s a lack of online filing options as well local and foreign resources. The only way to get out of taxes while living abroad is to renounce U.S. citizenship. There are a number of modest to rich business people that have renounced citizenship because they find it more of a liability than a privilege.

This issue is troubling to me because if this law passes will it have a double standard? As data from the IRS showed, the people that owed a lot of money also work for the government. So will they get special treatment if they decide to go outside U.S borders? Also, what other restrictive laws can start forming in order to force people to pay taxes?

For now, if you plan on going outside of the country for business or pleasure make sure to follow the rules and file your taxes. 

Good Ol' Wal-Mart

As if there weren’t enough reasons why I hate Wal-Mart, they have decided to grace us with their presence in the news with more uncovered shady global business practices. Wal-Mart is notoriously known for mistreating employees, suppliers, and the environment in all parts of the world. So it comes to no surprise that yet another scandal has been exposed.

The New York Times stated that executives at Wal-Mart have failed to root out alleged bribery in Mexico. A couple of congressmen have begun an investigation and have asked to meet with the chief executive of Wal-Mart. And just like Wal-Mart they have made up excuses saying that the alleged activities were more than six years old and that they are "working aggressively" to uncover the truth. All I can say is excuses EXCUSES!

Wal-Mart is facing U.S. violations laws that include the Foreign Corrupt Practices Act.  The Foreign Corrupt Practices Act is a federal law that primarily serves for two main purposes. The first one addresses accounting transparency requirements and the other concern with bribing foreign officials.

Wal-Mart was using bribery to obtain construction permits in Mexico and company officials had been informed back in 2005. What's also ridiculous is that Wal-Mart is trying to justify bribery by saying that it's a common practice in Mexico. It doesn't matter what Mexico does because as a U.S. company we have laws that companies need to follow even if they are over seas! Now because of this scandal Wal-Mart shares have fallen, which I believe they fully deserve for its non-compliance.

German Audi bringing some Italian flavor

There had been some speculations and now it's been confirmed by The New York Times. Audi, the luxury unit of German Volkswagen, has agreed to acquire the Italian motorcycle maker Ducati. The transaction was finally approved on Wednesday 18th. Audi didn't mention how much it was willing to pay, but it was rumored they would be able to pay about 860 million euros.


So what benefits does Audi wish to gain?


Volkswagen is the largest carmaker in Europe. Audi acquiring Ducati can possibly give them entrance to competing in a segment with rivals like BMW's motorcycles. Ducati is also known for having great expertise in small high powered engines and using materials like carbon fiber to design lighter vehicles. Having that kind of technology is becoming very important for carmakers being pressured by new regulations.


Audi also expects to increase profits with growing demand of motorcycles in Asia.


I feel this is a good step in the right direction for Volkswagen. Because Volkswagen has become more dedicated to making it's business more environmentally friendly. An article on Cars Bikes Trucks listed the targets set by Volkswagen. 

• 30 percent reduction in CO2 emissions during period from 2006 to 2015
• Emissions below 120 gram CO2/km mark for first time in 2015
• More than two thirds of €62.4 billion investment program for the period to 2016 to be spent on ever more efficient vehicles, powertrains and technologies as well as environmentally compatible production
• Every new model generation will on average be 10 to 15 percent more efficient than its predecessor
• Group production to become 25 percent more environmentally compatible by 2018
• 40 percent reduction in greenhouse gas emissions associated with production-related energy supplies by 2020
• Some €600 million is to be invested in expanding the use of renewable energies such as wind, solar and hydroelectric power

The benefits that Volkswagen's unit Audi could receive from Ducati will not just be good for the company, but also good for us. I expect them to use Ducati's technology to benefit the environment.

Wave and Go

Today, BBC News reported that Barclaycard (the first credit card introduced in the UK) unveiled a mini stick on credit card. It's the latest in the battle of the digital wallet.

You simply attach the mini stick on credit card to your phone and it allows you to make purchases without entering pin numbers. You just wave and go purchases on a machine.

Currently, the card is being offered to a group of customers. The customers will not receive any additional charges. The mini card is just an addition to their regular card. The card is one third the size of a standard credit card.

It has not yet taken off in the UK,  but I'm sure Barclaycard is hoping it will reach the same success as other countries like Japan. This form of payment is pretty popular in Japan.

There are concerns from customers who believe they might attract thieves since their card is visibly displayed on the back of their phone. But banks have promised customers they will refund fraudulent charges without any questions.

So your Russian dad bought you an $88 million penthouse

Imagine being a 22 year old and owning a four-bedroom penthouse at 15 Central Park West in New York City worth $88 million. Sounds like a dream? Well, for Ekaterina Rybolovlev this a reality. Ekaterina is the eldest daughter of Dmitry Rybolovlev a VERY successful Russian businessman. When he bought his daughter the penthouse (with cash) in February of this year it broke a record price for the most ever paid for an apartment in New York City.


And according to The New York Times this trend of Russians buying real estates in the U.S. is just warming up. The New York Times said that while the real estate market may still be slumping the high end is enjoying a remarkable updraft. They mentioned that developing countries like Brazil, China, and India are propelling money in the real estate market, but no group is writing bigger checks than the Russians.


It is amazing the amount of billionaires coming out of Russia. According, to Forbes the amount of billionaires in Russia has tripled!


How are they making their money?


Many of these Russian billionaires are getting flushed with cash from the privatization of Russian state industries and high prices on oil and other commodities. They are also being very smart because they are investing their fortunes outside the reach of  Vladimir V. Putin government.

wealthy Russian Vladislav Doronin and girlfriend Naomi Campbell

So what are Russians looking for when house hunting and how do we get in on this? Is probably the question real estate brokers and lawyers are pondering in order to get their business. Well, apparently many of these ambitious people headed into an Off Broadway theatre in Manhattan last month not for arts, but in order to roll in the Russian clientele. 


In the end whether they are just scared of Putin's government or trying to make names for themselves the Russian presence in the real estate market is looking pretty well if i say so myself. So get ready to sip some wine and nimble on cheese while attending events, preferably in New York City, if you want to get in on this yourself. Let the rubbing elbows with Russian billionaires begin!