FATCA Repeal : Tax-Avoiding Super Wealthy with Secret Bank Accounts Find a Friend in GOP

by Nomad

Once again, the Republican Party has demonstrated which side it supports. Between the average taxpayer or the 1%, its call for a repeal of Obama's anti-tax haven law of 2009- before it has even had a chance to be put into effect- provides us with a clear answer.  

Some Facts on FATCA

Reuters is reporting that the Republican Party is expected to approve a resolution this week, calling for repeal of an Obama administration law that is designed to crack down on offshore tax dodging.

The law, Foreign Account Tax Compliance Act (FATCA) requires foreign banks to find any American account holders and disclose their balances, receipts, and withdrawals to the US Internal Revenue Service (IRS), or be subject to a 30-percent withholding tax on income from US financial assets held by the banks. Owners of these foreign-held assets must report them on US tax returns if they are worth more than $50,000.

It was always going to be controversial and not beloved by banks, libertarians and some Americans living abroad. Another example of Big Government overreach, they howled. Lobbyists have been successful at delaying the law in operation. Its effective date has been pushed back repeatedly, with enforcement now set to start on July 1. 

If the Republicans have their way- and there doesn't seem to be much chance they will- FATCA would never start at all.