Questions behind FATCA.

FATCA is being used as a springboard to enact similar legislation.  GATCA is on its way too – the global exchange of tax information will surely come. In time, I predict that the traditional extradition treaties and tax treaties regarding enforcement of another country’s tax laws will also change. People will be extradited for tax crimes and foreign governments will assist one another in enforcing each other’s tax laws in the signatory foreign country. Currently, the extradition treaties and  tax treaties are not robust in these areas.

1. NEWSWEEK: The compliance cost of FATCA to financial institutions alone has been roughly estimated at US$8 billion a year, approximately ten times the amount of estimated US tax revenue estimated to be raised ($792 million.) Unusually, FATCA was not subject to a cost/benefit analysis by the Committee on Ways and Means. So why do you believe that the government is going ahead with this?
2.  NEWSWEEK: With FATCA, the US government is effectively imposing an extraterritorial law on financial entities in other countries. Still, as of May 2014, 33 countries have signed the agreement, and another 34 jurisdictions have also reached “agreements in substance.” Why do you think that so many foreign banks have bowed to the demands of the US?
3. NEWSWEEK: Has FATCA made Americans working overseas less competitive?  
4. NEWSWEEK:  Has FATCA had a stifling effect on entrepreneurship and small business growth for US citizens working abroad?
5. NEWSWEEK: On January 24, 2014, the Republican National Committee passed a resolution calling for the repeal of FATCA. Do you see these laws changing (or being repealed) anytime soon?  Are they here to stay?
6.  NEWSWEEK: Why have no politicians come to the support of US citizens living abroad? 7.6 million expats = 13th largest US state by population size (right behind Virginia.)  Is this effectively taxation without representation?
7. NEWSWEEK: Do you believe that FATCA will catch / deter tax cheats?
8. NEWSWEEK: Do you think more and more people will give up their US citizenship?
9. NEWSWEEK: Do you think that US lawmakers realize that how much hassle FATCA is causing for ordinary overseas citizens?