why is it?

Question

I was born in this country third generation my father and his fought two world wars and I served in the US Army as well. When I bought my first house, I had to show statements and tax records to show where the down payment came from, it took me nearly 20 years to save up for it. When i first went into business I had to put that house up as collateral to obtain a business loan.

I worked hard and paid taxes on every cent that I earned from day one.

so why can these rag heads come over to our country buy a chain of convenient stores with no questions asked with money we can't trace and be free of taxes for the first five years of business and get government assistance all the while shipping the cash back to their native country?

I say if a us citizen wants to start a business they also should have a five year tax free status and if qualified an interest free loan to start it up!

Jean: if you don't think buying houses creates jobs just go ask a contractor. As for creating jobs my business employees 150 people to date. And I think if you bring money here from abroad to invest or otherwise it should be taxed heavily upon entry to our country!

Carla: you miss the point completely

Kevin: so far the best answer if your web site link is factual, however my CPA begs to differ.

Answer 1

You had to prove the income because you were getting a loan from a financial instutitution subject to federal regulations. The feds want to make sure that money isn't drug money (or other illegal source) that's being laundered into clean assets. I had to do the same when I had a large amount of money show up in my account for a down payment shortly before I bought a home. I showed the bank the source (inheritance) and they were happy with it.

These immigrants who come over from other countries and buy or start businesses, generally use family money to do so. They don't go to the bank and get a loan and have a down payment. Otherwise they would have to prove the income for that down payment too.

The immigrants starting out tax free is an urban legend, discussed here http://www.snopes.com/business/taxes/immigrants.asp

Don't buy into the hate-filled crap that people spread. If an immigrant wants to come here and start a business and make a success of his family, set down roots and become American, more power to him. It only makes America that much better.

If that immigrant wants to send money back to people in the old country, he might be repaying some of the family money he borrowed to start the business. Or maybe he's just helping out family. Regardless, since he is now in America, he is free to do so. Yeah Freedom!!!

Answer 2

Because we rag heads bring in our own money, as we cannot get any loans at all - we do not have a credit history here. So we're in the same spot your grandpa was when he came here: all we are is what we have cash - we only have one shot and need to make the most of it.

Answer 3

because those are investments, not only they don' t have to borrow money, they bring money in and create jobs, good for the economy, buying a house doesn't create jobs :)

if you can't prove your income, put down a smaller down payment, then pay a lot of it off for the first few years, then just the rest with small monthly payments.