A lot of people out there still cling to the idea that paying taxes is your civic duty, but I propose we set aside that dragon to be slain another day. Let’s stick to facts: tax-saving strategies exist. Lifestyles exist. Enter the concept of Flag Theory. Boiled down to its essence, Flag Theory is the point where extreme tax-saving strategy and globetrotting lifestyle intersect.
In the 1960s an investment advisor named Harry D. Shultz encouraged people to:
⛳️Have a second passport
⛳️Keep an address in a tax haven
⛳️Keep their assets outside their home country
Schultz called this strategy “Three Flags Theory”. And he got paid handsomely to show people how to do it–-without breaking any laws.
(Story continues below; just want to mention that also in this issue:
5 Things About Canada that Surprised Me
Featured Service Provider in the expat space
Fun with AI: I ask Chat GPT “what are 10 lessons learned from the Haitian Revolution?”
…Now, let's read on:)
After a couple of decades Flag Theory expanded to five flags:
⛳️Residency
⛳️Citizenship
⛳️Banking
⛳️Assets
⛳️Business
An industry began to emerge. By the 1990s there were agencies out there who specialized in every conceivable aspect of Flag Theory. Specialists peddled Caribbean citizenship-by-investment, Belize residency, Cook Island trusts, Hong Kong gold storage, Dubai incorporations, Singapore banking, and so on. Generalists helped people cherry-pick the best items from the “shelves” of numerous different countries. Articles of incorporation in Country A, order fulfillment Country B--you get the idea.
Nowadays it’s looking like Flag Theory is up to seven, with the addition of ⛳️Digital Assets and ⛳️Digital Privacy.
Unbeknownst to Harry Schultz at the time, haters would one day go onto Wikipedia and paint his philosophy of personal freedom-in-action as a shirking of civic duty. However, I note that the two main Wikipedia entries that cover him, Harry D Schultz and Perpetual Traveler, never mention that he built a hospital in Afghanistan. Perhaps he was able to fund it with all the money he saved by legally minimizing his tax burden.
It makes me pause for a moment to contemplate: what if we were to capture just a fraction of the earnings we handed over to Uncle Sam to pay for missiles for endless war and to fund important research like whether Thanos could snap his fingers while wearing the Infinity Gauntlet? What impact we might have on our favorite causes like clean water, missing indigenous women, sea turtles, reducing your carbon footprint, press freedom?
So Harry Shultz had a philanthropy flag, too. Aint that somethin? So much for shirking his civic duty. Which brings me to my take on flag theory: if you’re going to plant flags around the world, then why not pick a country and work a little social responsibility into the recipe? And I mean true support for a place in need, not like the way the Clintons “adopted” Haiti.
***
Five things about Canada that surprised me:
Jaywalking is not an offense (sorry: offence), at least not in Ontario..
The first time I took a domestic flight in Canada, the guy in front of me took out his dugout and placed it in the tray along with his wallet and keys! I tensed up. I was about to witness a major airport security incident. Nothing happened. Of course, I said to myself. Why would anything happen? 🤦♂️
People rent their water heaters here. It’s mind-numbingly stupid. My work mates say, oh yeah, we’ve always rented our water heaters. I’m dumbfounded. My American rage is welling up. Do you rent the central heat, too? The air conditioner? The oven? The light fixtures? Well, no. Then why the hell do you rent your water heater?
I never realized how much I was going to miss big, cheap, strong margaritas. You could pub crawl across the whole state of Texas and never get served a bad margarita. Here, you’ll pay $15 for a tiny, weak margarita that’s mostly ice, served in a lowball glass.
Moving straight from Texas to Canada, I was taken aback the first time I stepped into a Mexican restaurant and nobody spoke Spanish.
***
If you’ve lived somewhere other than where you were born, or worked with a consultant or agency in this space, I want to hear about it. Simply reply to this email. It'll come directly to me.
***
Featured Service Provider in the Flag Theory Space. I don’t know this guy, and I’m not affiliated with him in any way, but if you ever end up hiring him, make sure you tell him that I referred him. Alexander Marino, JD, LLM (US TAX) He helps US persons renounce their citizenship. How wild is that?
“Most do not renounce out of any particular animosity toward the United States or even necessarily to save tax dollars. Indeed, many have U.S. friends and family who they regularly visit; more than a few are “snowbirds” who continue after renunciation to spend winters in states like Florida, Arizona, California, and Hawaii; and most come from countries where taxes are actually higher than in the United States.” ~Alexander Marino
Here’s his LinkedIn:
https://www.linkedin.com/in/alexander-marino-45a76b26/?originalSubdomain=ca
And here’s his website:
https://www.moodystax.com/us-citizenship-renunciation/
I know, right? 🤯
***
And now for some fun with AI. I asked Chat GPT: “What are 10 lessons learned from the Haitian Revolution?”
Here’s ChatGPT's verbatim answer:
(Begin AI text) The Haitian Revolution, one of the most significant events in history, offers numerous lessons that continue to resonate today. Here are ten:
Power of Resistance: The Haitian Revolution demonstrates the power of resistance against oppression. Enslaved people, despite facing immense brutality, organized and fought for their freedom, proving that even the most marginalized can effect change.
Unity and Solidarity: The revolution highlighted the importance of unity and solidarity among diverse groups. Africans, Afro-descendants, and even some white allies came together in pursuit of a common goal, emphasizing the strength in collective action.
Leadership Matters: Effective leadership, exemplified by figures like Toussaint Louverture and Jean-Jacques Dessalines, played a crucial role in guiding the revolution and inspiring others. Strong leadership can mobilize people and drive movements forward.
Impact of Ideals: The ideals of liberty, equality, and fraternity, espoused during the French Revolution, influenced the Haitian Revolution. This underscores the power of ideas in shaping historical events and motivating social change.
Global Reverberations: The Haitian Revolution had reverberations far beyond the island itself. It inspired enslaved people and oppressed populations worldwide, contributing to the broader struggle for freedom and human rights.
Economic Implications: The revolution had significant economic implications, not only for Haiti but also for global trade. Haiti's independence disrupted the Atlantic slave trade and challenged the economic foundations of colonial powers.
Legacy of Racism: Despite achieving independence, Haiti faced ongoing challenges, including economic exploitation and diplomatic isolation, rooted in racism and colonialism. The revolution highlights the enduring legacy of racism and the struggle for true equality.
Resilience and Reconstruction: Following independence, Haiti faced the daunting task of rebuilding a nation devastated by war and exploitation. The revolution underscores the resilience of the Haitian people and the importance of post-conflict reconstruction efforts.
Lessons for Decolonization: The Haitian Revolution offers lessons for contemporary struggles for decolonization and self-determination. It emphasizes the need to dismantle colonial structures and assert sovereignty over one's own destiny.
Continued Struggle for Justice: The Haitian Revolution is a reminder that the struggle for justice and freedom is ongoing. Despite achieving independence over two centuries ago, Haiti continues to grapple with internal and external challenges, highlighting the enduring nature of the quest for liberation.
These lessons from the Haitian Revolution remain relevant today, serving as a source of inspiration and insight for contemporary movements for social, political, and economic change.(End of AI text)
I can't help but notice that Chat GPT doesn't cite the American Revolution as having inspired the Haitian Revolution. I'm sure it was just an oversight. No agenda or anything. Pay no attention to the man behind the AI curtain!
Thanks for reading. Forward this to a friend, and to reach me, reply directly to this email.
Sincerely,
Gene Basler
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