The normally neutral Swiss invaded Washington this week, occupying Capitol Hill on behalf of 9 million Americans who live overseas.
D-L Nelson and I, together with Daniel Kuettel, his wife, daughter, and young son, all Swiss citizens or residents, flew to Washington DC at our own expense to urge Congress to repeal the draconian FATCA law (Foreign Account Tax Compliance Act). We were joined by US citizens who live in Albania, the Czech Republic, and Albania, together with leaders of Republicans Overseas (one of whom left Communist China to become American) to lobby Congressmen and their legislative staffs prior to an official hearing Wednesday.
Here's the essence of FATCA:
1. The Democratic Obama Congress snuck the FATCA legislation into the HIRE Act in 2010.
2. The legislation requires overseas banks to report the accounts of all Americans to the IRS.
3. If the banks miss reporting any American accounts, the IRS will impose severe penalties on the foreign banks, possibly putting them out of business.
4. The easiest option for the banks is to close the accounts of Americans. No Americans, no IRS penalties.
5. Many Americans, therefore, cannot have even basic savings and checking accounts, no debit card, no online banking, no credit card, no car loan, no home mortgage, no investments. It's rather difficult to live your daily life without a bank account, eh?
FATCA is unconstitutional (invasion of privacy, illegal search and seizure) as well.
You can read more about FATCA on the Republicans Overseas website: https://republicansoverseas.com/.
Donna-Lane had to give up their US citizenship in order to keep her bank accounts. She renounced in 2011, and it was a wrenching decision, something she equates with the death of her parents. Last year, nearly 6,000 people gave up their American citizenship, and the numbers are growing each year.
She, Danny, and the other expats are also part of a lawsuit against the Treasury Department and the IRS which has now been going on a couple of years and may end up in the Supreme Court.
When she/we started this battle, many folks, including expats, said why bother, it's a hopeless, Quixiotic quest. You'll never succeed against the power of the IRS and the US government. Our response: someone has to try to right this wrong.
Today we had meetings in five Congressional offices - key Congressmen who are on the committee which will hear testimony on FATCA repeal tomorrow. There is proposed legislation in both the House and Senate to repeal FATCA.
Who would have ever thought we'd get this far? Who would have thought that D-L would become the leading female crusader on behalf of 9 million Americans (more people than live in the whole of Switzerland and more than live in 37 of the US states) to strike down a law that has cost banks billions of dollars in paperwork just to try to root out damn Yankees?
At the hearing tomorrow, they will play a video of Donna-Lane's testimony. Since you've read this far, here's a link: https://www.dropbox.com/s/px66c6pvr8yejpj/Donna-Lane_NELSON_FATCA_FINAL.mp4?dl=0
And her written testimony: http://republicansoverseas.com/wp-content/uploads/Donna-Lane-Nelson-Testimony.pdf
And testimonies of her fellow plaintiffs: https://republicansoverseas.com/ro-publishes-testimonies-fatca-hearings/
The Congressional hearing will be live-streamed beginning at 2 pm Eastern time Wednesday. You can connect to it here on the IRSMedic youtube channel: https://www.youtube.com/watch?v=r9ZqWYUiFOw.
The battle is far from over, but we are making tremendous progress and victory is in sight!