Rep. Meadows introduces H.R. 5935
Washington, D.C. – On Wednesday, Rep. Mark Meadows (R-NC) introduced H.R. 5935—a bill that would repeal America’s global tax law which violates Fourth Amendment privacy rights.
H.R. 5935 will repeal provisions of the Foreign Account Tax Compliance Act (FATCA), included as part of the 2010 HIRE Act, that were originally designed to prevent tax evasion by increasing U.S. government access to foreign bank accounts held by U.S. citizens.
As part of FATCA, foreign financial institutions are required to report all account holdings and assets of U.S. taxpayers to the Internal Revenue Service. Failure of these institutions to do so could result in a penalty of up to 30 percent of their U.S. sourced income. Requiring institutions to disclose information like this violates a U.S. citizen’s rights to privacy and harms taxpayers with burdensome regulations to abide by.
“When we look at tax laws and the disclosure of information that’s required, it is critical that we always respect the privacy rights of our citizens and remember that the Fourth Amendment is not negotiable,” Rep. Meadows said. “Ultimately, it is clear that FATCA goes well beyond what is appropriate and requires a level of disclosing information to the IRS that violates Americans’ Fourth Amendment rights and places unnecessary burdens on taxpayers. I encourage my colleagues to support a repeal of FATCA and demonstrate a commitment to upholding our Constitution as the law of the land.”
The bill is similar to legislation introduced by Dr. Rand Paul in the Senate and has two original cosponsors—Rep. Jeff Duncan (R-SC) and Rep. Mick Mulvaney (R-SC).