THE Global
Financial Integrity (GFI) has urged the Republican National Committee (RNC)
to reject a proposed resolution calling for the repeal of the Foreign Account
Tax Compliance Act (FATCA) - the cornerstone of the U.S. effort to fight
offshore tax evasion. The law, which was passed in 2010 as part of the
Hiring Incentives to Restore Employment (HIRE) Act, requires foreign banks
to report deposit information on their U.S. accountholders for U.S. tax
compliance, as is required of domestic U.S. banks.
GFI has stated that repealing FATCA would deepen the U.S. budget
deficit by billions of dollars. According to the Internal Revenue Service,
the ongoing crackdown on offshore tax evasion—of which FATCA is an essential
part—has yielded over $5 billion in new tax revenue, with at least another
$5 billion expected to come.
“It is mind-boggling that a major political party would even consider endorsing
a resolution to facilitate tax evasion,” said Heather Lowe, Legal Counsel and
Director of Government Affairs at Global Financial Integrity. “Tax haven secrecy
is estimated to cost U.S. taxpayers $150 billion per year. Naturally, we urge
all members of the Republican National Committee to reject this resolution.
Tax evasion and illegality do not belong in the official platform of any political
party.”
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