The Future Of FATCA: Concerns And Issues

While tax evasion is an enormous problem, FATCA is not a solution to the problem. FATCA was primarily created to deal with the weaknesses of the QI system but it has turned out to be a case of overregulation that infringes upon the rights of Americans who live abroad. A strengthening of the QI system may have been enough to adequately address the issue of global tax evasion without the need to create a costly, massive piece of legislation that infringes on the rights of so many and may prove to be a threat to security.Given the facts that (1) many Americans living abroad have been denied access into their foreign pensions, insurance contracts and bank accounts as a result of FATCA; (2) many Americans may be singled out on the basis of their national origin because of FACTA; (3) the constitutionality of FACTA may be questionable; and (4) scam artists have already obtained personal information about people as a result of the FACTA data transmission, it is clear that FACTA should be repealed.