Center for Freedom and Prosperity
For Immediate Release
Friday, January 24, 2014
202-285-0244
www.freedomandprosperity.org
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: http://freedomandprosperity.org/2013/letters/ctc-letter-on-sponsoring-fatca-repeal/
CF&P President Andrew Quinlan commented, “The costs of FATCA’s misguided fiscal imperialism are mounting. It is past time for elected officials to wake up to the unmitigated disaster that they have unleashed upon the world.” He concluded, “There is legislation right now in the Senate, S. 887 introduced by Sen. Rand Paul, to repeal FATCA and restore basic privacy rights. With today’s resolution the people have spoken and said it’s time to get behind repeal.”
Brian Garst, CF&P Director of Government Affairs, added, “The GOP’s adoption of FATCA repeal to its platform is a major victory for taxpayer privacy rights, but there’s no reason why FATCA repeal ought to be a partisan issue. Basic fairness and proportionality in lawmaking should be part of every political platform.”
CF&P works to promote tax competition, financial privacy and fiscal sovereignty, and was on the record opposing FATCA since before its passage. CF&P experts have worked – through meetings, speeches, and op-eds – to educate lawmakers, regulators, media and the public by highlighting the growing list of problems documented throughout the FATCA implementation process.
For more information on FATCA visit CF&P’s dedicated web page:
http://freedomandprosperity.org/issues/foreign-account-tax-compliance-act/
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, andy@freedomandprosperity.org
Brian Garst can be reached at bgarst@freedomandprosperity.org
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