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FATCA is doomed?

The Campaign to Repeal FATCA, America’s toxic global tax law, has now gone into full gear.

A delegation of the Washington DC-based campaign, launched and co-led by Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organizations, spent last week in the U.S. capital garnering support. A powerful delegation took part in:

  • presentations on FATCA to two influential assemblies of tax activist groups that are active in shaping the tax package that will be passed by the Congress this year
  • several visits to congressional offices including those of Senator Roger Wicker (R-MS), co-sponsor of Senate repeal bill in previous Congress; Senator Rand Paul (R-KY), sponsor of Senate repeal bill in previous Congress; Congressman Mark Meadows (R-NC), sponsor of House repeal bill in previous Congress; and Congressman Thomas Massie (R-KY), co-sponsor of House repeal bill in previous Congress
  • a meeting with the Senate Budget Committee, which is “important for scoring FATCA repeal.”

Nigel Green comments: “FATCA has wreaked havoc on the global financial system, turned 8m Americans overseas into financial pariahs, violates other countries’ sovereignty, and is damaging for American jobs and therefore the American and global economies.”

Key letter

The delegation are also to send a letter signed by numerous tax reform groups, spearheaded by the influential Americans for Tax Reform, to key Congressional leadership urging inclusion of FATCA repeal in the tax package. 

FATCA Timing

deVere expect that, “Timing of the tax package is dependent on pending action on Obamacare. FATCA repeal legislation will now definitely be introduced in the current Congress, in both the House and the Senate, in the next few weeks; this will serve as a focus for gathering support.

Help offered

Help was offered to the delegation in securing early action by the Trump Administration to nullify the intergovernmental agreements that are essential to FATCA. And rounding up co-sponsors, contact with key committees - notably House Ways and Means - and securing support from the Administration.

Green stated that, “Other available levers include Senate consideration of tax treaties currently on hold, to render them unusable as vehicles for FATCA or the IGAs; budget scoring to provide for FATCA repeal - an amount insignificant enough to get 'lost in the foam' of a $4 trillion budget - and letters from Congressional supporters to the Administration.”

CTMfile take: The new Trump administration may actually do some good here. This is a win-win initiative, unlike getting rid of Obamacare.

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