(English) CF&P Applauds RNC Resolution Calling For FATCA Repeal

(Washington, D.C., Friday, January 24, 2014) The Center for Freedom and Prosperity applauds the decision of the Republican National Committee to adopt FATCA repeal as part of its official platform. Since its passage in 2010, the Foreign Account Tax Compliance Act has proven a disaster for Americans living, working and investing overseas, and is a fundamentally wrongheaded approach to tax enforcement.

Burdens imposed by FATCA have sparked significant opposition throughout world, as foreign institutions are expected to bear the costly burdens of implementing a law that is expected to raise very little revenue – a mere $800 million per year according to the Joint Committee on Taxation’s estimates. Many institutions have responded by dropping American clients, and investment is expected to flee the U.S. in response to FATCA’s stiff withholding penalties.

Last year the CF&P led Coalition for Tax Competition was joined by 21 of the country’s largest and most influential free-market, taxpayer protection and grassroots organizations in signing a letter requesting FATCA repeal. The letter argued that FATCA will fail to achieve its stated goal of significantly reducing tax evasion, is straining foreign relations thanks to the extralegal burdens placed on foreign financial institutions, is severely impacting law-abiding Americans living and working overseas, will harm the U.S. economy by driving investment to more hospitable jurisdictions, and that the Treasury Department has grossly overstepped its bounds through creation of the international agreement (IGA) process and their unauthorized promises to put equally costly burdens on domestic institutions in exchange for international acquiescence.

Link to Coalition for Tax Competition letter: https://freedomandprosperity.org/2013/letters/ctc-letter-on-sponsoring-fatca-repeal/