If I were still American, Elizabeth Warren would be my senator. Overall she does great things, but what the damage FATCA does to law-abiding expats she doesn't have a clue.
Her response ignores that FATCA is so bad that people are giving up their nationality because of the unintended consequences.
My letter to her didn't address the underlying issues that the US is only one of two countries to tax citizens on world-wide income, nor does it cover the money and time spent filing US taxes, a large majority of which owe nothing.
She talks about the $100 billion they hope to recover, not the higher cost of implementation (one estimate is $100 million per bank).
At school when one kid was bad, all kids were punished. FATCA is the same, which is why expat Americans who can no longer want to be American. They are being punished for doing nothing wrong and she is helping attack her fellow citizens albeit indirectly.
Thank you for contacting me to share what happened to you while trying to obtain financial services overseas and your concerns about the Foreign Account Tax Compliance Act (FATCA).
As you may know, President Barack Obama signed FATCA into law on March 18, 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. The purpose of FATCA is to prevent overseas tax evasion by U.S. persons holding assets in offshore accounts. Under the statute, U.S. taxpayers must report their foreign assets to the Internal Revenue Service (IRS) if the total value exceeds $50,000 and certain foreign financial institutions -- such as mutual funds and banks -- must report annually on the accounts held by their U.S. clients.
I recognize that FATCA implementation has not been perfect, and it troubles me that financial institutions overseas would deny services to Americans out of concern over FATCA compliance. However, according to the U.S. Senate Permanent Subcommittee on Investigations, the U.S. Treasury may be losing more than $100 billion in tax revenues every year as a result of offshore tax havens. I believe measures like FATCA clamp down on overseas tax evasion and help make sure that everyone pays their fair share of taxes.
Thank you again for your input and for sharing your story about what happened to you personally. I will be sure to keep your thoughts and story in mind.