The folly that is the FATCA same-country exemption
by: Anthony Parent
The Democrats on the House Oversight Committee tacitly admit that the Foreign Account Tax Compliance Act (FATCA) has some serious problems. But, FATCA was a Democrat law, so they seem to loath the thought of a repeal even though it has wreaked havoc on a very non-paritsan basis. Their solution? A proposal of a Same Country Exemption (SCE) that would exempt accounts held by US person who live in the same country the bank is located.
In the video below, we give seven reasons why this is a bad idea.
To summarise, the seven flaws of the SCE are:
The SCE will not help US persons open or keep bank accounts
The SCE will increase costs to banks (if they decide to impletement; it is totally optional)
It does not help IRS enforcement internationally; rather it hurts
It will only hurt legitimate taxpayers. Those determined to frustrate law will still be able to do so.
Does not address Constitutional deficiencies
Helps actual "fat cats" avoid detection
Ignores the reality of living and working overseas.
In this second video, we interview Michael Edwards of the World Council of Credit Unions. He was explains the harm FATCA causes to US and International Credit Unions. In this clip, he explains why a SCE simply would not work.
Credit Unions, both domestic and abroad, are unduly hurt by these onerous regualtions and want FATCA repealed. We discover from Mr Edwards more reasons why the SCE is not a good idea.
The SCE is likely to be a meaningless gesture - There are already exemtpions that should protect Americas from the disaterous consequences of FATCA, yet those are completely ignored. So why should be expect any different from the SCE?