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.