Senator Rand Paul Introduces Bill to Repeal FATCA

WASHINGTON, May 8, 2013 /PRNewswire-USNewswire/ -- The following is being released by Global Strategic Communications Group:

Senator Rand Paul (Republican of Kentucky) yesterday introduced a bill (S. 887) to repeal mandates of the "Foreign Account Tax Compliance Act" (FATCA) on financial institutions and individual American citizens as a "violation of sovereign nations' laws and privacy matters."  In a letter to his Senate colleagues, Dr. Paul pulled no punches about the destructive effects of the FATCA law and unsupportable claims that FATCA is a legitimate tool to combat tax evasion:

FATCA "has had the practical effect of forcing FFIs to relinquish any association with American customers, and to avoid direct investment in the United States. It goes without saying that overseas investment in the U.S. is an important engine of our economic growth and prosperity. FATCA endangers an estimated $25 trillion in foreign capital currently invested in the U.S."

"Perhaps even more troubling, the implementation of FATCA has allowed the Treasury Department to make independent decisions with respect to the sovereignty of foreign nations and the privacy of United States citizens. In order to implement this law, Treasury has initiated intergovernmental agreements (IGAs), citing the intent to engage in reciprocal information sharing with other nations. The Treasury Department, without the consent and authority of Congress, will force U.S. financial institutions to provide the bank account information of private customers to foreign nations.  Such a requirement not only diminishes U.S. privacy protections, but also imposes billions of dollars in compliance costs here at home, which will be passed onto customers and the American public."

"This is a major game-changer," says James George Jatras of RepealFATCA.com.  "With the wind in Washington now blowing against FATCA, foreign governments are on notice that Treasury's promises of 'reciprocity' are plain rubbish.   Congress will not provide the needed authority to rescue this fatally flawed law."

"Both American and non-U.S. firms that stand to lose millions of dollars each complying with FATCA need to help push the repeal bill through," adds Jatras.  "FATCA repeal needs to be part of any tax reform."

Activists in Washington are weighing in in support of Senator Paul:

"Successful tax systems attract capital. Unsuccessful tax systems attempt to force other countries to become their tax collectors. That's what FACTA is, and it should be repealed." -- Grover Norquist, Americans for Tax Reform.

"Senator Paul's bold stand against FATCA has come at an opportune time. The world is fed up with U.S. fiscal imperialism.  Rather than allow regulators to continue pursuing an unconstitutional 'intergovernmental agreement' strategy, it is time for lawmakers to accept defeat and abolish this fatally flawed law."  -- Andrew Quinlan, Center for Freedom and Prosperity.

"The last thing America should be exporting is its complex tax laws. Senator Paul deserves a round of applause from taxpayers in our nation and around the world for recognizing the dangers FATCA poses to our economy and our civil liberties."  -- Pete Sepp, National Taxpayers Union.

It is anticipated that a companion House version of Senator Paul's bill will be introduced shortly, along with measures to block the Treasury Department from carrying out unauthorized FATCA "intergovernmental agreements."

Visit www.RepealFATCA.com for more information on "the worst law most Americans have never heard of"!  

James George Jatras manages RepealFATCA.com. He previously served as a policy analyst at U.S. Senate and as an American diplomat.  He can be reached at [email protected] .

SOURCE Global Strategic Communications Group