I thought it might be interesting to post a transcript of one of the few limited debates the US Congress has ever had on anti expat legislation.
You have to scroll a little bit to get to the part where son of FATCA and passport confiscation gets discussed. The debate is very partisan with New York Republican Congressman Mike Grimm doing an admirably job of holding of holding off the socialist hordes so to speak.
Here is the most interesting quote from Texas Democratic Congressman Lloyd Doggett:
My little company down there in San Antonio that changes tires all day, they’ve probably never been to Switzerland, much less considered hiring a bank in Switzerland to help them hide their revenues that they worked so hard to earn and which some of these companies involved in these abusive transactions just consider to be rather routine.
You say, well, this is just academic; surely people can’t get away with this stuff. Let me tell you what they’re getting away with.
I pointed out already that with regard to one bank in Switzerland, UBS, they finally had to disclose $18 billion–that’s billion with a B–$18 billion of assets of United States citizens sitting there in hidden accounts in that bank. There were some 50,000 such accounts that UBS had to disclose. Eventually, they had to pay over $700 million in fines. But they’re not the only bank that is involved. Currently, the Treasury has under investigation 11 Swiss banks. There’s one bank that is under Federal indictment.
This is not an academic problem. It’s academic only to those who talk about process instead of solutions. We have a serious problem that undermines the confidence in our government and in our system of tax collection.
Why should somebody who’s out there struggling at that tire rim company or that tech startup or just a working family that’s out there trying to make ends meet with two people, some working overtime, some working the night shift in order to provide the food and fiber that their family needs to survive, why should they have to comply with our tax laws when you have these kind of companies that could afford the special treatment, that can afford the lobbyists to block measures like this engaged in abuse?