This Is an Urgent Campaign to Repeal FATCA ALERT!
Support the Paul Amendment to Repeal FATCA!
November 29, 2017
This week the Senate version of the tax reform bill will come to the Senate
floor. The Campaign to Repeal FATCA has learned that Senator Rand Paul
(R-Kentucky) plans to offer as a floor amendment his bill S. 869 to repeal
the so-called “Foreign Account Tax Compliance Act (FATCA).
The Campaign to Repeal FATCA is asking everyone immediately to contact your
Senators with this simple message:
“Support the Paul Amendment to Repeal FATCA!”
You can find the contact information for your state’s two Senators
here. Given the partisan divide
in the Senate, it is especially important to contact Republican Senators. If
your state has one from each party, contact the Republican first!
Here is a suggested draft message you can use via the email contact. (NOTE:
If you are contacting a Democratic Senator, please delete the sentence in
red referring to the Platform.):
Dear Senator [Name]:
As your constituent, I strongly urge you to support the floor amendment to
be offered by Senator Rand Paul to repeal the so-called Foreign Account Tax
Compliance Act, or FATCA. Despite the claims of its sponsors when it was
passed in 2010, FATCA is a failure in its supposed aim to recover offshore
tax assets hidden by “fat cats.” Instead, it has imposed massive costs on
middle class Americans, violated Americans’ privacy without probable cause,
and led to a huge increase in U.S. citizenship renunciations. The 2016 GOP
Platform called for the repeal of this wrongheaded Obama-era law – and the
Republican Party should keep its promises! Please support the Paul Amendment
to repeal FATCA!
[Name, location]
In addition, if you represent an organization, please issue a statement in
support of the Paul Amendment to repeal FATCA and send it to Senate offices
and distribute via social media.
Time is of the essence. Thank you for your help at this critical moment!
Nigel Green and Jim Jatras
Co-Leaders, Campaign to Repeal FATCA
Further information points on why FATCA must be repealed follow:
The GOP called for repeal in its 2016 Platform. “The Foreign Account Tax
Compliance Act (FATCA) and the Foreign Bank and Asset Reporting Requirements
result in government’s warrantless seizure of personal financial information
without reasonable suspicion or probable cause. Americans overseas should
enjoy the same rights as Americans residing in the United States, whose
private financial information is not subject to disclosure to the government
except as to interest earned. The requirement for all banks around the world
to provide detailed information to the IRS about American account holders
outside the United States has resulted in banks refusing service to them.
Thus, FATCA not only allows ‘unreasonable search and seizures’ but also
threatens the ability of overseas Americans to lead normal lives. We call
for its repeal and for a change to residency-based taxation for U.S.
citizens overseas.”
FATCA fails in its stated purpose of recovering tax revenues. On enactment
in 2010, FATCA was scored as raising about $800M per year. According to
Texas A&M law professor William Byrnes, actual recoveries are closer to
$100-200M per year and falling. FATCA will soon cost more than it brings in.
FATCA is an indiscriminate violation of privacy. FATCA data reporting
requires no probable cause or even suspicion. Unlike domestic 1099s and W2s,
no taxable event is required. Compliance burdens fall disproportionately
upon people of moderate means, few of whom are engaged in evasion or owe any
tax. Foreign banks’ denying services to Americans leads to increased U.S
citizenship renunciations.
FATCA is costly. Estimates of global compliance spending rely on aggregation
of per-institution costs: millions for each small bank, hundreds of millions
for a big one. One projection puts cumulative cost at $58 to $170 billion.
This is an order of magnitude greater than any recoveries from FATCA.
FATCA relies on Obama-era Executive overreach. Because of other countries’
privacy laws, FATCA is unenforceable without so-called “intergovernmental
agreements” (IGAs) invented by Tim Geithner’s Treasury Department. The IGAs
are not authorized by statute or submitted to the U.S. Senate as treaties.
FATCA threatens our domestic financial industry. Reciprocal “Model 1” IGAs
promise “reciprocity” from U.S. domestic banks. This threatens massive
FATCA-like costs on U.S. banks and consumers.
Keeping FATCA on the books risks future harm. The OECD, which for years has
sought to extinguish personal financial privacy and create a worldwide
financial data fishbowl, has praised the IGAs as a “catalyst” to that end.
If FATCA remains on the books, the next Democrat Administration and Congress
may press reciprocity on domestic American financial firms to create a
global FATCA – or “GATCA.” This is the opposite of what the GOP Platform
promised.
Transparency is when citizens monitor government.
When government monitors citizens, that’s tyranny.
There was never going to beva vote on Rand Paul’s repeal-FATCA proposal, as I understand it – the aim was to try to get it included in the “manager’s amendment” – which may be what Rand Paul was referring to when he said at the Meadows hearing that he hoped to get it included in tax reform.
As I’ve already posted, I would think regulatory changes to FATCA may yet happen – changes beneficial to wealthy US-resident
donorscitizens – not necessarily beneficial to those not resident in the US.So Rand Paul’s amendment was geared toward wealthy US residents? Why doesn’t that surprise me. Thank you Republicans. Thanks for nothing.
No – Rand Paul’s amendment would have repealed FATCA. Regulatory changes would be completely separate, nothing to do with Rand Paul (but very much to do with the Republicans).
Andrew: Before you go, how about signing the UN Complaint.
Everybody: We have been totally screwed over by the US government despite the help of certain key players such as Rand Paul. Yes, the Bopp appeal is still in play but we’ve got to make some international noise and we need to find out how to do it better than we have done so far.
A Human Rights Complaint against CBT, FATCA and FBAR was filed with the United Nations in August 2014. It is STILL waiting to be evaluated for acceptance into the complaints process. We are about to send a letter, a document of support for the complaint, and a list of additional signatories. We can send this material today but we would rather wait for a FLOOD of additional signatures. Where are the 3,027 who signed the RO petition? We have collected a LOT less than that … a LOT less!
Here’s how to access the Complaint and sign it: contact calgaryfouroneone@gmail.com and request the password for the document. It will be sent to you along with a link.
We need you to Tweet this out there all over the place and get this ball rolling. Whoever has the ear of Solomon Yue, please let RO know this campaign is ON! Whoever knows Sophie int’Veld in the EU, please let her know or ask an admin to send me her email address. We cannot publish the Complaint itself but we can certainly advise the media that this is happening.
Stephen, John, Tricia: I think it might be time for an ADCT press release on this. As Petros told me three years ago, if nothing else the UN Complaint would be an enormous opportunity to embarrass the hell out of the US government and it might kick the UN in the butt to get it moving on addressing our issues.
Let’s get this done!
I’m giving the GOP one more year to sneak something through. Tack FATCA relief onto a tax break for private religious colleges with huge endowments or something, the usual cartoon-villain plutocrat stuff they get up to. After that it’s done, they’ll either be eating themselves alive during Watergate II, or be clobbered in the 2018 mid-terms. Or something even worse.
None of which changes my calculation. Mendacious Canadian duals can easily avoid FATCA and have no need for compliance. Renunciation is cheap (well, cheap-ish) insurance against things getting worse, but in many cases probably not necessary, at least not yet.
“if nothing else the UN Complaint would be an enormous opportunity to embarrass the hell out of the US government and it might kick the UN in the butt to get it moving on addressing our issues.”
I don’t believe the US government is at all susceptible to being embarrassed by the UN over US tax law; and no amount of buttkicking could give the UN the power to do anything about US tax law.
People need to recognise that there is no international authority that has the desire or the power to make the US change its laws. This idea that “if only the world understood how the unfairness, something would be done” is not true. The US could act, but have chosen not to; US courts could act, but have chosen not to.
A residence country (or the EU) may have laws giving citizens some protection; many countries have “non-collection” treaty provisions, and some like Canada may have other applicable laws. Beyond that, it’s up to the individual to decide what is the best course of action available to them, and proceed on that basis.
“…we need to find out how to do it better than we have done so far.”
Responsibility for CBT/FATCA/IGA rests with the US and the IGA signatory countries. It’s not because USCs living outside the US haven’t figured out how to stop it, and it’s not because of USCs not signing petitions. People need to move on and deal with reality, not keep searching for a non-existent solution. That’s a waste of spirit, and of life.
Plaxy: I’m sorry you feel that way. As I’ve said many times on this forum: women have the vote and people of African descent no longer have to sit at the back of the bus. Those were considered intractable issues of their time and it was ordinary people like Susan B. Anthony and Rosa Parks, who, by their tenacity, fortitude and conviction changed their world.
If “dealing with reality” means forking over my HUSBAND’s money to renounce my US citizenship (already renounced in my heart!) and to file the requisite forms and pay the requisite “balance owing” on taxes unpaid over the past five years (didn’t know I was supposed to file any forms or pay any taxes to the government of a country where I haven’t lived since I was 5!) I absolutely WILL NOT do so! For me, “dealing with reality” is to CHANGE that reality no matter how long it takes!
Those who feel as I do are invited to sign the Complaint!
@Muzzled……..but we’ve got to make some international noise and we need to find out how to do it better than we have done so far.
I and many others will NOT go quietly into the night!!!!
No holds bar……time for scorched earth.
Obama and the Democrats made a mistake with FATCA.
The GOP and Trump have LIED and now embrace FATCA.
Today December 2 2017 every damn renunciation is because of the Republican party and Donald Trump lying in writing to expats.
Russia treats its expats better than the USA!!!
This comment below from facebook is breaking my heart;
Anne Durio Fitzpatrick We are terribly terribly disappointed. But we know who we owe the majority of our gratitude to. It is not the two groups who claim to represent expats. Thank you Keith, RO, and dedicated army, for pushing this as far as it’s gone! We know that there is still work to do & we will continue to participate. However, our children have already made their decisions to renounce in the New Year. The parents will follow. We cannot sustain a living this way, constantly looking over our shoulders with worry. The overwhelming & burdensome restrictions, plus the imposed stress of not being to have a normal day in many years, have taken their toll on us. Unforgivable! We must have something positive to look forward to in the remainder of our lives, with freedom & happiness (of course) at the top of the list. Mille mercis, encore!!!
“If “dealing with reality” means forking over my HUSBAND’s money to renounce my US citizenship (already renounced in my heart!) and to file the requisite forms and pay the requisite “balance owing” on taxes unpaid over the past five years.”
No need for those without US assets/income/heirs to file US forms or pay US taxes. Those having trouble with banks may decide it’s worth paying the fee to renounce; otherwise ignore US tax laws and get on with life. And obviously, some may want to sign anti-CBT petitions; but need to be aware that petitions won’t be effective in changing US tax law.
@Mods, I think we need a thread of What happened?/What went wrong?
@All…the one good thing for expats? Repeal of the Obamacare mandate. One thing I learned is that it had become impossible to get travel insurance to the USA as someone consiidered a US Person. We actually had a claim denied for that reason as it was a second trip to the USA in one calander year. They told me they do not sell ACA compliant insurance and as a USC my child needed ACA compliant insurance and I should not have bought a travel poolicy.
@Plaxy, “but need to be aware that petitions won’t be effective in changing US tax law.”
It means you are not going silently into the night.
From Jim Jattras twitter..someone who I do not think is blowing a lot of smoke…some smoke yes but not out of every opening;
Jim Jatras @JimJatras
4h4 hours ago
Jim Jatras Retweeted Domenico Mauriello
Unfortunately we lost this round. Unexpected opportunity came, we took a shot. There will be other, better opportunities.
Renunciation of US citizenship is not the night – not at all!
plaxy is right. The only effective petitions are those that come with large campaign contributions.
Susan Collins and Jeff Flake traded their crucial votes for empty promises of future considerations.John McCain put party above country. Apple , Google, Goldman , Trump et al are happy.
George (GB): Thank you for posting that heart-wrenching Facebook comment. I’ve just copied it (minus the name) into the Support Document that will be sent to the UN. No one should have to go through what this family, and so many others around the world, are enduring.
Plaxy et al: How does one stay under the radar? When the bank asks me ri fill out a w8… isn’t that when im outed to IRS? Pls advise.
Dave: Being reported to your tax authority by your bank is damned annoying but it doesn’t mean you have to file US tax returns. The IRS doesn’t know if you’re required to file, unless you tell them. I’m not advising by the way, not being an advisor. Just being logical.
I wouldn’t describe it as staying under the radar, I’d describe it as not filing US tax returns. There is no radar, assuming no crime has been committed. (Not filing US tax returns is not a crime.)
I respect and appreciate the efforts of Solomon at RO.
I have no doubt that he feels utterly betrayed by the GOP working so hard to get them voters.
That said I think he owes everyone a statement with no excuses proffered for the GOP on what went wrong.
What next? President Donald Trump has a pen and a phone. He knows how to issue Executive Orders. The last hill for RO is to get him to strike away the IGAs and also to have his Secretary of Treasury use his authroity to index and recalculate the FBAR threshold and to exempt countries that have robust AML and KYC rules. .
@George (GB)
Hear, here but I fear that the Pu$$y grabber in chief knows nothing of our woes. Best to save your wishes for a better day.
“…get him to strike away the IGAs…”
That would be beneficial for US-resident holders of non-US accounts. It would be far from beneficial for USCs living outside the US – who would become instantly much riskier for banks to have as customers. And in many countries CRS would carry right on identifying them.
But if a non-US country withdrew, or refused to allow its banks to discriminate against its US-born citizens, that could be beneficial, because a negotiated solution might be agreed. Not using birthplace as indicia would be favorite.
@MuzzledNoMore and all
I agree the Human Rights Complaint should go forward. Also hope others sign. We certainly don’t need to remain silent on FATCA, FBARs, CBT and the USA extraterritorial over reach into Canada.
We are having a by-election in my riding. I had an interesting phone conversation with the Liberal candidate who was not at all familiar with FATCA. He called me because I replied to an email asking for my vote. The call was in response to my hesitation to commit unless we discussed FATCA and the IGA issue. It at least gave me an opportunity to discuss this and send lots of educational material to the candidate. I’m still undecided but at least we have his attention.
Speak up and never give up is my mantra.
“One conclusion is that non-resident US taxpayers are more likely to find relief in the courts than from the legislature (either in the US or where they live).”
Find relief in the courts? Pardon me I forgot, ADCS got $500,000 or $600,000 of donations? How much relief is that going to get us? How many of us have that amount of money to spend for a lawyer for ourselves, and how much relief will that get for Mr. Dewees or the rest of us?
One conclusion is that relief costs US$2,350 for those who can afford it, who have another citizenship, and have sufficiently simple lives. Another conclusion is others are not going to get any relief at all. Japan T is going to end up living in the US on welfare, without his family. I don’t know what will happen to his children.
“As Petros told me three years ago, if nothing else the UN Complaint would be an enormous opportunity to embarrass the hell out of the US government”
Oh wow, the US government will be embarrassed?
Some years ago Congress changed the name of French Fries to Freedom Fries. The French government got so embarrassed that they changed their minds and joined the US in its invasion of Iraq. See how great that turned out? Well, that wasn’t the only snack involved.
French people put a frankfurter on a stick, add mustard, and call it Corn Dog. American people put a frankfurter on a stick, add mustard, and call it French Dog. Japanese people put a frankfurter on a stick add mustard, and … they used to all it American dog, but not any more. They changed the name to Stick Frank. The American government got so embarrased that it withdrew from Iraq. See how great that turned out?
I need to take a look at the UN Complaint and see if a renunciant’s signature will be meaningful. But embarrassment? Non-resident US taxpayers are more likely to find relief in cou— c— c— I can’t say it.