Center for Freedom and Prosperity
For Immediate Release
Thursday, November 29, 2012
CF&P President Andrew Quinlan Calls for Resistance to FATCA at 36th Annual Conference on the Caribbean and Central America
(Washington, D.C., Thursday, November 29, 2012) Center for Freedom & Prosperity President Andrew Quinlan called upon attendees at the 36th Annual Conference on the Caribbean and Central America to resist the Foreign Account Tax Compliance Act (FATCA). During his presentation, Quinlan cited the damage FATCA is causing to both the international banking sector and the US economy, and challenged the popular notion that acceptance is the proper response to the law.
From his prepared remarks:
“…The more everyone believes that there is nothing they can do to stop FATCA, the truer it becomes.
Up until recently, chatter about FATCA was coming almost entirely from those who had the most interest in pursuing it. The compliance industry in particular has been repeatedly telling everyone that “FATCA is coming, there is nothing you can do about it, and oh, by the way, pay us a lot of money so that we can bring you into compliance.” The last thing they would want to do is encourage you to oppose what will fund their collective retirements. But now we’re starting to see more outcry from opposition groups and legislators.
…At a time when governments are being asked to give and give and give, it’s important to keep in mind that what Treasury is promising to deliver in return may not be legally or politically possible within the US.
It’s also important to understand that many members of Congress likely had no clue what they were voting for when FATCA was passed. It was included as a side item and funding mechanism for an unrelated bill supposedly designed to create jobs. When you put all this together, it means that Congressional reversal is still possible, particularly if domestic institutions are brought into the cross-hairs. Congress may not care about the burdens placed on foreign institutions, or even on Americans living abroad, but they will care about imposing similar costs on American banks and their customers – otherwise known as voters.”
Link to the entire speech: http://freedomandprosperity.org/2012/testimony-and-speeches/andrew-quinlan-remarks-on-fatca/
Passed in 2010 as part of the Hiring Incentives to Restore Employment Act, FATCA threatens foreign financial centers with a 30% withholding requirement on US accounts if they don’t comply with draconian new reporting requirements. Citing the added costs and hassle, many institutions have already begun dropping American clients and divesting of US holdings, reducing much needed investment in the US economy, which reduces both economic growth and the availability of new jobs. With fewer institutions willing to serve them, Americans living overseas are also finding it difficult simply to open bank accounts, and are renouncing their US citizenship at an increasing rate.
CF&P’s mission is to educate the public and members of Congress on the benefits of tax competition, financial privacy and fiscal sovereignty, including how passage of laws like FATCA will backfire and drive investment out of the US economy.
For more information on FATCA visit http://freedomandprosperity.org/issues/foreign-account-tax-compliance-act/
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, email@example.com