FATCA to be Discussed in the Senate
ACA is pleased to see that legislators in Washington are becoming aware of the very damaging and destructive Foreign Account Tax Compliance Act (FATCA) passed in 2010. ACA fully supports the US government's efforts to combat tax evasion. However, ACA believes that the FATCA legislation has gone too far and elements of the legislation are seriously damaging the US economy and the lives of Americans working overseas.
Senator Rand Paul (R-KY) announced recently (May 7th 2013) legislation to repeal FATCA and make a number of other changes to existing tax provisions.
ACA is concerned that the FATCA regulations are resulting in the lock-out of banking access for American clients who have legitimate reasons for maintaining financial investments overseas as well as, pushing investors away from the US capital markets. FATCA, in effect, treats all Americans living, working or investing overseas as suspect and this is having a serious negative effect on the ability of Americans working in the export industry overseas to create business opportunities for the US economy.
ACA has been tracking the issues of FATCA with its constituency and problems such as complete financial lock-out, liquidation of assets, denial of job opportunities have been reported as a result of the FATCA legislation. Many employers, banks, investors are finding that dealing with Americans and investing in America is not worth the risk or the cost of compliance. Recent submissions to the Ways & Means committee on tax reform have highlighted to Congress the problems that average, hard-working Americans are facing due to the FATCA legislation.
ACA continues to work on educating Congress and the Treasury Department on the negative effects of FATCA and continues to work various avenues to address the problems.