Senator Rand Paul introduces Bill to Repeal FATCA

© Greg Nash

WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) introduced legislation to repeal the Foreign Account Tax Compliance Act (FATCA), with U.S. Representative Mark Meadows (R-NC) introducing a companion bill in the U.S. House. Sen. Roger Wicker (R-MS) joined Dr. Paul as an original cosponsor.

Enacted by Congress in 2010, FATCA mandates that foreign financial institutions regularly report private financial information on American citizens under threat of a 30% withholding tax on U.S.-source income. The law has impeded international financial transactions and investment by leading many foreign banks to simply deny services to Americans rather than navigate the burdens and costs of compliance.

“FATCA disregards the Fourth Amendment and privacy rights by requiring the bulk collection of innocent Americans’ financial records,” said Sen. Paul. “It discourages foreign investment and prevents Americans from accessing the financial system overseas. It is time to repeal this job- and privacy-killing law.”

“For all of FATCA’s aims to improve tax compliance, this law is not worth the burdens it imposes,” said Sen. Wicker. “We have seen the negative implications on foreign investment and regulatory compliance costs. We should address these repercussions and repeal FATCA.”

“Any time we deal with tax laws and the disclosure of information that’s required, it is critical to remember that the Fourth Amendment right to privacy is non-negotiable,” said Rep. Meadows. “Over time, it’s become clear that FATCA goes well beyond what is permissible under Fourth Amendment protections and places a serious burden on taxpayers. I’m proud to join my friend Senator Paul to support a repeal of FATCA and to demonstrate a serious commitment to upholding our Constitution as the law of the land.”

You can read Senator Paul’s legislation HERE.

This week, Senator Paul and Representative Meadows sent a letter to U.S. Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Mick Mulvaney urging the administration to publicly support repealing FATCA and to take steps within its power to limit the law’s damaging effects.

You can read that letter HERE.

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https://www.paul.senate.gov/news/press/sen-rand-paul-introduces-bill-to-repeal-fatca

Rep. Mark Meadows Introduces FATCA Repeal Bill

Rep. Mark Meadows

Apr 7, 2017
Press Release

Washington, D.C. – On Thursday, Rep. Mark Meadows (R-NC) joined Senator Rand Paul (R-KY) to introduce a bill that would repeal America’s global tax law, which has caused U.S. citizens to renounce their citizenships in record numbers.

The bill would repeal provisions of the Foreign Account Tax Compliance Act (FATCA), included as part of the 2010 HIRE Act, that was originally designed to prevent tax evasion by increasing access to foreign bank accounts held by U.S. citizens.

As part of FATCA, foreign financial institutions are required to report on all account holdings and assets of U.S. taxpayers to the Internal Revenue Service. Failure for these institutions to do so could result in a penalty of up to 30 percent of their U.S. source income. Requiring institutions to disclose information such as this violates a U.S. citizen’s rights to privacy and harms taxpayers with burdensome regulations to abide by.

“Any time we deal with tax laws and the disclosure of information that’s required, it is critical to remember that the Fourth Amendment right to privacy is non-negotiable,” Rep. Meadows said. “Over time, it’s become clear that FATCA goes well beyond what is permissible under Fourth Amendment protections and places a serious burden on taxpayers. I’m proud to join my friend Senator Paul to support a repeal of FATCA and to demonstrate a serious commitment to upholding our Constitution as the law of the land.”

Senator Paul offered the following statement:

“FATCA disregards the Fourth Amendment and privacy rights by requiring the bulk collection of innocent Americans’ financial records. It discourages foreign investment and prevents Americans from accessing the financial system overseas. It is time to repeal this job- and privacy-killing law.”

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https://meadows.house.gov/media-center/press-releases/rep-meadows-introduces-fatca-repeal-bill

 

Sen. Paul and Rep. Meadows offer bill to repeal FATCA

Rep. Mark Meadows (R-N.C.) and Sen. Rand Paul (R-Ky.) offered legislation Thursday to repeal an Obama-era offshore tax law.

The bill would do away with provisions of the Foreign Account Tax Compliance Act (FATCA), which requires foreign financial institutions to report information about accounts held by U.S. citizens to the IRS.

Read more at The Hill.

Photo by Greg Nash

Meadows-Paul Letter Urging Executive Action To Nullify FATCA Is A Landmark Moment

WASHINGTON – April 5 – Nigel Green, CEO of deVere Group and Co-Leader of the Campaign to Repeal FATCA, today lauded a letter from Rep. Mark Meadows and Sen. Rand Paul to Treasury Secretary Steven Mnuchin and OMB Director Mick Mulvaney urging actions to “mitigate the ongoing damage” caused by the Foreign Account Tax Compliance Act pending its anticipated repeal.

“This is a major landmark moment,” said Green. “FATCA has only rolled on because of legally unauthorized ‘intergovernmental agreements’” – known as IGAs – “but if the White House and Treasury overturn the previous administration’s power-grab, that alone would doom this terrible, toxic law.”

Read more at ValueWalk.

Jim Bopp explains FATCA

Washington has imposed “extraordinary burdens” on U.S. citizens abroad, says James Bopp Jr., an attorney at The Bopp Law Firm representing plaintiffs in a case against the U.S. government with regards to FATCA.

Watch video at CNBC.

Professor Allison Christians, McGill University, Montreal “No solution goes far enough except the repeal of Citizenship Based Taxation.”

Republican Party Going to the Israeli High Court for Help

‘According to a recent petition, the Israeli government has taken the wrong side in a world war that the US is waging over taxes of its overseas dual citizens.’

Continue reading at the Jerusalem Post.

International Tax Blog “New Expatriate Record for 2015: Nearly 4300 Expatriations”

‘Today the Treasury Department published the names of individuals who renounced their U.S. citizenship or terminated their long-term U.S. residency (“expatriated”) during the fourth quarter of 2015.

The number of published expatriates for the quarter was 1,058, bringing the total number of published expatriates in 2015 to 4,279.’

Continue reading at the International Tax Blog.

BBC Russell Newlove: “Why expat Americans are giving up their passports”

‘How does it feel to give up your nationality, to renounce the country you were born in, potentially forfeiting the chance to ever return?

“It’s not going to be easy at all. It’s the last thing I ever thought of doing,” Jane tells me when I meet her in a Paris cafe.’

Continue reading at BBC.com.

New US Model Income Tax Treaty: Now With Kill-Switches!

“The 2016 Model is the result of a concerted effort by the Treasury Department to further our policy commitment to provide relief from double taxation and ensure certainty and stability in the tax treatment of treaty residents,” said Deputy Assistant Secretary for International Tax Affairs Robert B. Stack. “The 2016 Model includes a number of provisions intended to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance,” he added.

Continue reading at Taxpol.BlogSpot.HK.