FATCA repeal and tax reform updates with Solomon Yue
by: Claudine Gindel
We were joined by Solomon Yue -- an integral force behind the effort to repeal the Foreign Account Tax Compliance Act (FATCA). Solomon is an American success story. He emigrated from China to become a successful entrepreneur and is now co-chair of Republicans Overseas. This drives him in his desire to keep the American dream alive for others.
In April, we traveled to Washington to attend the Repeal FATCA hearing - "The unintended consequences of the Foreign Account Tax Compliance Act". Solomon is part of the team working tirelessly to get this law repealed.
We wanted to check in with Solomon to find out what progress has been made since the hearing. We got some pretty good news!
How are things progressing?
Things are definitley moving in the right direction. We do expect to have a vote to repeal FATCA, at least from the house side. We are unsure exactly when that may happen as there is currently a leadership transition happening. There is a new committee chairman, so the vote is on hold for the time being.
What has transpired since the FATCA hearing?
About a week after the hearing, Solomon and his team proposed their Territorial Taxation plan for individuals. It was very well received and now has more focus than ever on it. Not only does Trump support the idea, it also fits into his Job Creations Agenda.
Paul Ryan tweeted his support of the Territorial Taxation plan on June 20th; getting support from Speaker of the House is very good news.
If this Territorial Taxation plan was to go through, then FATCA would not be needed anymore as it is an enforcement regime. That being said, work would still be done to have the law repealed. The last thing we'd want to see is a new regime to come in, years from now, and dust off FATCA and bring it back to life.
What are the next steps?
In terms of the FATCA repeal vote, now we wait.
Currently, Solomon and his team are in the process of getting their Territorial Taxation proposal written into the House version of the tax reform package.
How can people help?
Once the Tax Reform package is finalized and submitted, write and call your Congressman and tell them that you support it.