Nigel Green, CEO of the deVere Group, and a frequent critic of FATCA, calls the RNC resolution “a step in the direction of common sense”, as reported by Robin Amlôt in CPI Financial:
Republicans’ “common sense” fightback against FATCA applauded
The Republican National Committee (RNC) voted Friday to adopt a resolution to repeal the US law, which is purportedly aimed at cracking down on tax evasion. Green, whose firm has more than 70,000 clients worldwide, including many American expatriates, said, “The RNC’s vote to support the repeal of this damaging law, that was slipped into the 2010 HIRE Act and wasn’t reviewed properly by Congress, is a step in the right direction for common sense.
“I hope that this heralds the start of the critical review that FATCA should have already been subject to, which has not taken place to date; plus the start of a national and international conversation on this immensely important issue – again something, that has to date not yet taken place.
“The Republicans’ bold stance is part of a groundswell of anti-FATCA feeling in Washington and beyond and, to my mind, it represents real progress in the fightback against a law that has a host of serious unintended adverse consequences.
“FATCA is hugely expensive to implement – costs that will surely be passed on to the public – and highly ineffective. It will do little, if anything at all, to tackle the serious challenge of offshore tax evasion as it does not actively target tax cheats. Instead it relies upon a ‘dragnet approach’ to haul in the personal financial information of millions of ordinary Americans – the vast majority of whom are not suspected of owing taxes – on the off chance they happen across some illegally hidden assets.
“All Americans should be concerned about FATCA because it will reduce foreign investment in the U.S. thereby threatening American jobs, fuel the likelihood of tax hikes, increase consumer costs for dealings with banks and other financial institutions, potentially damage important international trade relations, and it will – and already is – turning American citizens who live and/or work outside the US, and American firms operating globally, into financial pariahs.”
The RNC’s vote to back a FATCA repeal follows Senator Rand Paul’s opposition last year when he introduced legislation, citing privacy concerns, to have parts of the controversial law scrapped. FATCA, which the Obama administration intends to implement from 1 July 2014, requires every single financial institution in the world to report all their American clients’ financial activities directly to the US Internal Revenue Service (IRS), or be subject to a 30 per cent withholding tax.
A welcome change from the spate of anti-anti-FATCA articles since this news broke. I don’t believe we’ve heard from Nigel Green for a while.
When you add up all the opposition to FATCA and every group and individual calling for repeal or amendment it’s astounding that the U.S. is so insistent that it go forward. No one wants this except a select small group of people who never used any over sight or analysis to push this forward hidden in a charming sounding act “Hire”
Of those who understand what this is and what it will do how many support it? I can’t find any. All the support I’ve seen comes from those with very little knowledge of the way it will work or the impact it will have.
In simple terms Fatca tries to go after the filthy rich at the cost of the middle to low income people and wants all Countries to pay for it’s implementation. What a great plan from Obama and Levin. It leaves any country that signs up a “succer” Brilliant plan….. but wait, the WORLD HATES the US for it. If they do not now, they soon will once they see what Fatca is really about and how much it is costing them!!!
As I said before I doubt the republican president will get elected. I also doubt they will get 50 senator let alone 60 to overcome a fillibuster or 67 to overcome a presidental veto, A party pushing for general tax (FATCA is a minor part of their strategy) cuts will not get majority support because a majority of people get more from the government then they pay in.
This article describes
“Counting transfer payments such as foods stamps, Medicaid, Medicare, and other government welfare, Congressional Budget Office (CBO) analysis shows the top 40% pay 106% of all taxes (more than all of them). In turn the bottom 60% get money back.”
the government doc
This based on 2010.
The number are even more against the Republican since the Bush tax cut foir the rich have expired (not continued) increase taxes on the rich for Obamacare plus more transfer payment for people on Obama care.
You have to be realistic.
I think once the path to citizenship is opened up for illegal immigrants they may even loose control of the house,
By the way NativeCanadian it appears that FATCA was written by Max Bacua and Charley Rangel
After committee deliberation, Sen. Max Baucus and Rep. Charles Rangel introduced the Foreign Account Tax Compliance Act of 2009 to Congress on October 27, 2009. It was later added to an appropriations bill as an amendment, sponsored by Sen. Harry Reid, which also renamed the bill the HIRE Act.
I think Levin who is chairman of Armed Service committee is working on anti-Tax heavan bill
Stop Tax Haven Abuse Act
“Carl Levin initiated the Stop Tax Haven Abuse Act against alleged tax havens such as Liechtenstein. For the state of the initiative against tax avoidance and tax evasion registered as S.506, and the complementary initiative H.R.1265, see: Thomas (Library of Congress).”
As Flaherty say Canada is not a tax heaven, it would have been better if USA just targeted tax haven rather than all countries. Of course Levin is a liberal Democrat who love taxes.