Free-market groups urge repeal of Obama-era offshore tax law

Free-market groups urge repeal of Obama-era offshore tax law
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More than 20 free-market and taxpayer-protection groups on Tuesday urged congressional GOP leaders to repeal a law from the Obama administration aimed at fighting offshore tax evasion.

The groups — including FreedomWorks, the National Taxpayers Union and Grover Norquist's Americans for Tax Reform — want tax-reform legislation to include the repeal of the Foreign Account Tax Compliance Act (FATCA). Repeal of this law was also part of the 2016 Republican Party platform.

The law requires certain taxpayers with financial assets held outside the U.S. to report information to the IRS.

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The groups said that they support combatting tax evasion but argued that the law "has ensnared innocent Americans in an appallingly draconian scheme that true wealthy tax evaders can still easily avoid."

"It treats any American asset held abroad as tantamount to criminality, demanding reams of private financial data without the need for a warrant or a showing of probable cause," the groups added in a letter to Speaker Paul RyanPaul Davis RyanPaul Ryan researched narcissistic personality disorder after Trump win: book Paul Ryan says it's 'really clear' Biden won election: 'It was not rigged. It was not stolen' Democrats fret over Trump-district retirements ahead of midterms MORE (R-Wis.), House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyHouse panel advances key portion of Democrats' .5T bill LIVE COVERAGE: Ways and Means to conclude work on .5T package LIVE COVERAGE: Tax hikes take center stage in Ways and Means markup MORE (R-Texas), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellWe don't need platinum to solve the debt ceiling crisis The Hill's Morning Report - Presented by Alibaba - Democrats argue price before policy amid scramble House passes standalone bill to provide B for Israel's Iron Dome MORE (R-Ky.) and Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchLobbying world Congress, stop holding 'Dreamers' hostage Drug prices are declining amid inflation fears MORE (R-Utah).

The free-market groups said that Americans living in other countries have lost access to bank accounts since FATCA took effect. They also argued that U.S. citizens who have been trying to comply with FATCA and made small mistakes "are facing unfair and vindictive penalties that can exceed even the size of their overseas holdings."

"FATCA violates our most-cherished principles of due process, presumption of innocence, personal privacy, and national sovereignty," the groups wrote. "It does not accomplish its stated objectives but does inflict untold collateral harm at great cost."