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Further information points on why FATCA must be repealed follow: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.
@ Embee,
I just saw your comment and tried the url you posted. It worked for me too. Thanks very much! It’s great to be able to see the comments again — there’s so much interesting stuff in them as well as the posts.
@ pacifica777
I guess I learned that an icon can change it’s URL. Glad it works for you too. Now we’ve both got some catching up to do at AE. 🙂
Oh damn! I just get back into AE and find this posting from Keith. Too, too sad … I hope he reconsiders. We simply cannot lose our best warriors. 🙁
A huge war broke on Facebook between some RO and DA people.
This is a huge loss of Keith Redmond and his work on our behalves. Thank you for posting that notice here, EmBee. I am another who had not been able to get into the American Expatriates public Facebook site (but can now with the new link provided).
This is what happens when there are so many of us that will not / cannot come forward to help in the fight. I believe John Richardson said something similar to others…
I give thanks each day for all who have stayed in this fight / given their expertise, their time, their donations, their comments in this conversation! Thank you, Keith Redmond, for all you did — no one could be asked for more than you have given.
@ Tim Smyth
Yes, I see. Guess who wins when we fight ourselves. It’s the System, the Status-quo, the Establishment, the Never-a-change-for-the-better Hardliners. Meanwhile Ethos, Pathos and Logos weep. I’ve never had a set political party affiliation (voted Green, NDP, Progressive Canadian, Con and Lib in the past) so it’s hard for me to grasp just how deep the divide is between Dems and Reps. It often slips way beyond the bounds of decency. I hope enough love and appreciation are expressed at Am Ex to keep the forum going. It really is a lifeline, like Brock, to those who are seeking understanding, support and whenever possible solutions to this three-headed mess called FATCA/FBAR/CBT.
BTW I just found out that our friend in FATCA opposition, the Hon. Sinclair Stevens, passed away a year ago. We can thank him for the Toronto Forum of 2012. I feel, in a way, that the forum started our ball rolling. Little did we know back then that it wouldn’t simply and logically roll down hill but we would still be pushing it up hill to this day.
The insanity of business / politics as usual in the US, the reason some of us chose to live and become citizens of countries elsewhere through many years, has spilled over into our other countries and the fight in which we could choose to come together. This weakens us all.
If anyone needs a feel good, in a sad way, moment today. Please read this touching letter written by Anne Durio Fitzpatrick’s grandfather which was posted yesterday at Am Ex. Wish I could give Grandpa Durio a hug. We ALL need to take a break, regroup and then continue to play whatever role we are best suited for in the fight to repeal FATCA and demolish CBT.
https://www.facebook.com/groups/AmericanExpatriates/permalink/897896907043049/
American Expatriate 2.0
https://www.facebook.com/groups/AmericanExpatriates/
American Expatriates 2.0 group’s mission is to put as THE PRIORITY the serious issues adversely affecting Americans living overseas and Accidental Americans as it pertains to US government policy overreach. The policies include FATCA (Foreign Account Tax Compliance Act), CBT (Citizenship Based Taxation). US citizenship laws, and any other policies which inhibit the American overseas and Accidental American to live a normal life in their respective countries of residence.
This group does not address homeland American issues. Please consult other groups for those issues. This group is not about US tax compliance. Any postings not aligned with the group’s mission will not be approved by the administrators.
This group will support those individuals, groups, organisations, and other entities which put Americans living overseas and Accidental American issues as the priority and will call out those who do not regardless of party affiliation or non-affiliation.
As a member or prospective member, if you cannot handle the praise or criticism of a group which may be different from your personal political ideology then this group is not for you.
Constructive critique & debate are welcome. Any member who is not respectful of others or attacks/harasses other members will be removed from the group! Homeland American partisan bickering, attacks, trite expressions and insults will not be tolerated. Hence think before you post or comment.
The group is open to Americans living overseas, Accidental Americans, and Americans who have renounced. Homeland Americans, & journalists who are interested in learning more about these serious issues.
If a member blocks any of the administrators of the group, the member will be removed from the group. Advertising is not permitted.
A donation to the American Overseas Global Advocate Fund is sincerely appreciated. Your support enables Keith REDMOND, the founder of this group, to continue the important, critical work needed for the aforementioned populations. A donation is not a prerequisite to joining the group. Donation link: https://www.gofundme.com/American-Overseas-Advocate
Keith REDMOND
American Overseas Global Advocate
Americans Across Borders
Paris / Washington DC
US_Overseas_Advocate@outlook.com
https://www.gofundme.com/American-Overseas-Advocate
http://www.facebook.com/groups/AmericanExpatriates/
American Expatriates 2.0 E-mail Signature
Archive links for Anne Durio Fitzpatrick’s grandfather’s letter, for those who have trouble viewing Facebook:
Page 1: https://archive.is/awO3P
Page 2: https://archive.is/fJ77i
Page 3: https://archive.is/kXraL
@All………….so is Keith still onboard but rebranded?
I have no doubt he feels crushed after his hard work.
@George
Perhaps but that was not the source of today’s issue-some people on that site have been extremely difficult……………
Interesting, but probably meaningless, development. The list of proposed amendments on the Reconciliation Tracker has become much shorter. The Repeal FATCA amendment is still there. Does this mean the other amendments were thrown out entirely and Paul’s amendment is still eligible for consideration? Or does it mean the other amendments were moved to a higher priority lousy and Paul’s amendment is left in the dirt? Or does it mean diddly squat?
https://www.rpc.senate.gov/tax-cuts-and-jobs-act-reconciliation-tracker
@ George
It looks like Keith went into a dark place we’ve probably all been ourselves at times (actually he was pushed) but now he’s back and willing to continue the fight. It’s been a tough day. Sometimes on FB it is difficult to determine the time sequence of postings so I hope I’ve got this right. We need Keith. He’s one of the smoothest advocates we have when it comes to interviews and I imagine when he’s lobbying in Washington he’s well received. It’s not easy presenting something as intricate as FATCA/FBAR/CBT in an easy to understand manner and he can do it.
Please everybody support Keith REDMOND ! I fully understand his “coup de geuele”.
RE: My comment here …
http://isaacbrocksociety.ca/2017/11/29/support-the-paul-amendment-to-repeal-fatca/comment-page-8/#comment-8073104
It was Anne’s father, not grandfather, who wrote that wonderful letter. Thanks Eric for posting more readable links to the letter. Sometimes my brain isn’t in gear before my fingers engage the keys.
Barbara – As I understand it, the Repeal FATCA was submitted as “an amendment to this amendment” ( i.e. an amendment to the manager’s amendment). Like most of the other amendments, it was never actually considered and never made it into the manager’s amendment.
Only stuff that made it into the manager’s amendment is being considered during the process of reconciling the Senate bill with the House bill.
That’s my understanding, but the whole process has been deliberately corrupted to subvert democracy by allowing bills to pass without bipartisan input or votes, so it’s pretty hopeless trying to make sense of it.
@ plaxy
This was just posted on RO’s FB:
Thanks Embee. There’s a lot of information available online about how the process works (or doesn’t work). No need to rely on RO’s pronouncements which have been staggeringly offbase throughout, IMO.
Search on “senate reconciliation process” or similar terms, to bring up various official and non-official explanations.
It’s all over. It is a dead duck.
Although the FATCA Repeal amendment is dead, it should not be forgotten that changes to FATCA regulations have been promised (or threatened).
https://www.jdsupra.com/legalnews/treasury-hints-that-regulatory-review-61021/
Changes could be good news, could be bad news, could make no difference, for those born in the US and living elsewhere. Eyes peeled.
The Treasury report mentions possible changes to FATCA here:
https://www.treasury.gov/press-center/press-releases/Documents/2018-03004_Tax_EO_report.pdf
It occurs to me that this may simply refer to regulatory changes that may be necessary to align Section 871(m) and FATCA with anticipated legislative changes (i.e., shift to “territorial” taxation for corporations).
“It’s all over. It is a dead duck.”
Or maybe not quite dead yet?
For what it’s worth (if anything), ACA says:
Question in brackets inserted by me.
https://www.americansabroad.org/news/aca-statement-on-tax-reform/
What are the chances that Treasury would increase FBAR and FATCA reporting thresholds, at least for non-residents? What else could they reasonably do to mitigate the situation?
I read in Politico that Rep. Mark Meadows & Freedom Caucus held up the vote for a while for other reasons (https://www.politico.com/story/2017/12/04/house-conservatives-tax-plan-206549). I conclude that they are still influential (all the more so that there is zero sign of bipartisanship). Are they still moving against FATCA? After all, if they get a tax bill they like, or find acceptable, the next step would be to improve things further, in their view, and therefore perhaps take care of our problem.
There is still about a year of GOP control of Congress to go — much can still happen. And of course if the GOP remains in control then, that’s a total of 3 more years.
The ACA statement no doubt is referring to their own RBT plan, which seems also to be the plan Brady and Holding have had in mind in their comments of support, and Brady’s comment to the FT.
But if indeed there may be a “post-vote corrective bill”, maybe Rand Paul might try to get FATCA Repeal considered at that point.
It would do no harm at all to have measures addressing both CBT and FATCA put forward for consideration in the same bill. Dots could be connected, lightbulbs might light over senatorial heads.
Plaxy: Yep. Unfortunately lightbulbs don’t work as well as dollar signs.