FATCA's "Vulnerabilities Evident," Washington Expert Claims, Calls for Repeal

WASHINGTON, May 10, 2012 /PRNewswire-USNewswire/ -- The following is being released by Global Strategic Communications Group:

The FATCA law should be scrapped, writes James George Jatras, a Washington-based legislative specialist and expert in international affairs, in a May 8 UPI commentary.  Citing "untold costs" versus "trivial revenue recovery," Jatras shatters the myth that FATCA ("Foreign Account Tax Compliance Act") is a "done deal" and calls for "first rendering FATCA unenforceable, and then for its final repeal."

According to Jatras: "FATCA's vulnerabilities are increasingly evident as a clearer picture emerges of the long list of oxen who will be gored: American expatriates, dual nationals, resident aliens, American consumers of financial and investment services, workers in foreign investment-dependent industries, and anyone who doesn't want their private financial data shared with who-knows-who," as well as both American and foreign firms "saddled with costs completely out of balance with FATCA's supposed revenue purpose."

Jatras also examines the dangers posed by an international "FATCA partnership" requiring American firms "to transfer personal financial information of millions of Americans to foreign governments and eventually to a central international repository."  FATCA, enacted in 2010, may also facilitate efforts to create a "global high-tax cartel and even a supranational financial transaction tax."   The intergovernmental reciprocal "partnership" would also impose costs on domestic American firms, which would be "passed on to consumers, raising expenses for all Americans," writes Jatras.

Jatras notes that "firms in 'partner' countries mistakenly are relieved to be reporting to their own governments, not to the IRS."  But in reality, "firms' 'partnership' costs may turn out to be even greater, with the prospect of reporting on assets from multiple countries, not just one," he writes.  "It's the IRS who's really being rescued, with foreign governments' being 'allowed' to do IRS's job for it." 

Draft FATCA regulations are pending.  "FATCA can be and should be repealed," writes Jatras.  "During this election year, presidential and Congressional candidates need to be put on the spot where they stand."   

James George Jatras is a Principal of Squire Sanders Public Advocacy, a Washington-based government relations firm.  He previously served as a policy analyst at U.S. Senate and as an American diplomat.  He can be reached at [email protected].      

Twitter @repealfatca

UPI: "Why 'FATCA' should be repealed"

For further analysis: "Global Financial Information Regime Looms"

Contact: Global Strategic Communications Group, Darren Spinck, 202-669-4418, [email protected]

SOURCE Global Strategic Communications Group