The "Abolish FATCA" petition was posted by the Republicans Overseas, which was founded by several prominent RNC members to represent the interests of members of the Republican Party and other American expats who live abroad.
The Foreign Account Tax Compliance Act was aimed at cracking down on the use of foreign bank accounts and overseas financial institutions by Americans looking to evade their US tax obligations. But critics say it has made life impossible for honest Americans who happen to live abroad.
Since it was signed into law in 2010 by president Obama (who is a Democrat), many have been finding that the financial institutions in the countries in which they live have been asking them to take their accounts elsewhere.
Anger over the issue has been running high, and growing numbers of expatriate Americans who do not plan to return to the US have taken to renouncing their citizenships in order to put an end to the hassles.
FATCA comes into force fully on 1 July, after having been postponed a number of times.
'Negative impact' cited
In part, the "Abolish FATCA" petition reads: "FATCA has negatively impacted 7.6 million US citizens living abroad.
"First, it violates US citizens’ right to privacy by requiring foreign banks to disclose [their] account names, taxpayer identification numbers, addresses, and their account balances, deposits, and withdrawals to the IRS.
"Second, foreign banks are denying and/or revoking financial services to US citizens as a result of the increased costs and burdens of FATCA…
"Finally, the IRS requires US payers to withhold 30% of funds paid through non-compliant foreign financial institutions as a punitive enforcement against US citizens, without due process, if foreign banks fail to meet FATCA’s reporting requirement.
"As a result, a record number of Americans are deciding to give up their citizenship in order to protect their livelihood.
"I believe that FATCA is morally reprehensible and detrimental to overseas Americans’ basic human rights. America, as a shining city upon the hill, must not impose this horrible choice between citizenship and livelihood on its own citizens."
Letters to foreign ambassadors
In a separate development, Solomon Yue, the chief sponsor of the RNC resolution to repeal FATCA, has written a letter to the British ambassador to the US, Sir Peter Westmacott, and other foreign dignitaries in Washington, informing them of both the RNC's vote and the abolish FATCA petition.
"It would be our pleasure to forward petitions signed by US Green Card-holding British citizens to your office," Yue said in his letter, which is dated 3 February and which has been posted on the Republicans Overseas Facebook page.
As reported, Yue is a is a China-born, naturalised American from the state of Oregon, who says he serves as vice chairman and chief executive of Republicans Overseas in his personal capacity. He told International Adviser that he was moved to draw up the repeal FATCA petition after becoming aware of how American expatriates have been struggling as a result of the proposed law.
The resolution was approved on 24 January by the RNC at its winter meeting in Washington.
To view and download the "abolish FATCA" petition, click here.
