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.”