From the IRS FAQ:
Q. Who must file an FBAR?
A. Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
90% of the population probably doesn't have $10k of assets. So while $10k isn't alot of money, it is out of the ordinary, especially if you are able to store it out of the country.
The key point here is AT ANY TIME so even if the amount is just passing though (i.e to pay for uni fees) you are in breach, which I just found out a few weeks ago, and the fines for not filing a FBAR are insane.
But that's the United States. Maybe wages are awesome in Canada?
"Sources": https://secure.wikimedia.org/wikipedia/en/wiki/Household_inc... https://secure.wikimedia.org/wikipedia/en/wiki/Poverty_in_th...
The FBAR isn't the big deal for wage earners, the big deal is the failure to file.
Consider that this could be accumulated savings over time and various accounts. Also consider things like employer-sponsored retirement accounts that someone may have had with an American company that they have simply forgotten about. (That happens FAR more than people realize/ would expect)
The point is it's a bad rule. Making the line 10k is guaranteed to pick people soldily 'middle class' and not just "rich" people.
Yup. If one has a hundred grand or more in fairly liquid assets, yeah, I can see the argument for having them check to make sure all the Is are dotted. (Though even there, with life-long savings, inheritance, etc, it's within reach for "normal" people.) For less than a year's middle class expenses, probably not so much.
You seem to imply that a good policy would be to screw the wealthy people and let those of moderate means flout the law. I don't think it's healthy to have a different set of laws depending on a person's income.