Proud, proud, proud of my wife and best friend, Donna-Lane Nelson, for her stellar performance Tuesday and Wednesday on Capitol Hill. Despite no longer being American, she helped carry the fight to Congress on behalf of 9 million US citizens living overseas, as well as Accidental Americans, whose lives have been devastated by an Obama Administration 2010 law that has made it nearly impossible to have basic banking services in the countries where they live.
At our own expense (and we are not wealthy), we flew from Europe to the States to participate in several meetings with Congressmen and their legislative aides (the people who really drive the agenda in Washington) and to testify before a House committee reviewing the "unintended consequences" of the Foreign Account Tax Compliance Act, or FATCA. The office meetings have their own fascinating nuance, which I will try to relate in the next post.
In my previous blog, I provided links to D-L's video testimony during the committee hearing, her written testimony, and the testimony of the other witnesses. (http://lovinglifeineurope.blogspot.com/2017/04/madame-nelson-goes-to-washington-i.html)
The shock of the committee hearing was not that the Democrat Representatives on the Committee were attempting to salvage core elements of FATCA, but that they opted to attack Donna-Lane and their fellow US citizens (including Danny Kuettel, who had served in the US Army) who are suffering irreparable harm from this law:
1. The designated Democrat "expert" witness, Elise Bean, essentially called Donna-Lane a liar, suggesting that the FATCA law was not a valid reason for D-L's citizenship renunciation.
2. Ms Bean was dismissive of those former Americans who have renounced their citizenship (about 6,000 last year alone), comparing their outmigration with the hundreds of thousands of migrants coming into the States. Go ahead and leave; there are plenty more to "replace" you.
2. Ms Bean tried to get away with the falsehood that FATCA reporting by overseas banks was no different than US banks providing the IRS with a 1099 form. Under questioning from the committee chair, Rep. Meadows, she "amended" her deceit with the disingenuous comment, "1099 is a form, and the FATCA report is a form." Jim Bopp, the attorney for a lawsuit against FATCA, pointed out that in addition to the taxable interest earned, which is the only item reported on a 1099, the FATCA reporting by overseas banks adds highest balance, deposits and withdrawals, and other data -- information which has nothing to do with taxable income and would require a court subpoena to obtain in the US -- a clear violation of the US Constitution against invasion of citizens' privacy.
3. Then, during questioning, Ms. Bean put on her Police State hat and said she would like to see the more extensive and intrusive FATCA information reported ... on all US citizens by all banks in the United States! Without a warrant! I gasped involuntarily when she threw this zinger out.
Through the week's meetings with mostly Republicans, Donna-Lane (a lifelong Democrat who has always been very active politically) had refrained from commenting on non-FATCA issues with which she strongly disagrees with their views and votes. (I teased that she had a hidden "hold your tongue" button that she kept pushing when her blood pressure would rise.)
She/we were in Washington for one purpose -- to help get FATCA repealed on behalf of all those being wronged by it. It would be counter-productive to engage in arguments on other topics which might undermine the FATCA effort.
One Republican Congressman (whom we won't name to protect his reputation), hugged Donna-Lane and called her his "favorite Democrat."
However, during an unexpected recess in the committee hearing so the Representatives could respond to a roll call vote, Donna-Lane confronted Ms Bean and let the so-called FATCA 'architect' know exactly what she thought of her and her law. "You don't know what you're talking about. You should live overseas for a year. And you are responsible for ruining thousands of lives." Later, during a press conference, in response to a reporter's question, D-L said she would like to slap her, which probably wouldn't have been suitable for the decorum of the committee room.
I don't know if Donna-Lane's comments had an unsettling effect on Ms Bean in the questioning when the hearing resumed, or if it was Rep Meadows' holding her feet to the fire to answer the questions he asked, or if she was merely unprepared that her veracity might be challenged. I was seated in the row immediately behind Ms Bean (D-L was now observing from the back of the room, no doubt still seething), and the Democrats' hired-gun witness was clearly out of ammunition. She was extremely evasive in her answers, or offered irrelevant non sequiturs which only served to demonstrate lack of compassion. In short, she was trying to defend a bad law which she had written and which had been very badly implemented.
After the committee hearing adjourned, as people stood around chatting in small groups, I engaged with a representative of American Citizens Abroad (ACA), which is pushing the Democrats' faux FATCA fix of the so-called Same Country Exception (SCE).
SCE is no solution, as it would leave in place the core unConstitutional aspects of FATCA. Moreover, the overseas banks who have chosen to purge themselves of American accounts are highly unlikely to change course and accept some American accounts (bona fide residents) and not others -- with a Damocles sword penalty of 30% poised over them, a few expat accounts are certainly not worth the bother.
Ms. Bean was standing with the ACA rep, and surprisingly, when I said the real problem was citizen-based taxation (CBT) ... or as I prefer, taxation-based citizenship ... and that we need to abandon CBT and adopt RBT -- Residency-Based Taxation -- which is the way every other civilized country in the world administers taxes, SHE AGREED! That's right, Ms Bean, oppressor of expats, said she is for RBT instead of CBT. Now, she may recant later, or say I misheard her, but then again maybe she did absorb some of the pain she and her compadres have inflicted on innocents.
I won't get into the obvious errors of fact from the Democrat chair, such as his statement that most other countries practice CBT (sorry, sir, Eritrea is the only other country to tax its citizens on their worldwide income), or his suggestion that there are plenty of banks around the world who will accept American accounts (plenty of data otherwise). Or the bizarre linkage of FATCA which implied that the IRS needs Americans' overseas bank info because there are terrorist, sex trafficking, and drug cartel financiers hiding among our group.
It was an exhausting but exhilarating three days. Three months ago, when we thought this hearing was supposed to take place, Donna-Lane could not have done this. She was extremely fatigued from what we finally learned was an overactive though tiny thyroid. She's doing much better now, thanks. It was only a year ago that she was coming out of the final chemo and radiation treatments of her second successful battle with breast cancer.
Knowing her, even if she was feeling underwonderful, she would have made the trip. She would not have missed the opportunity to fight for a just cause. She has always been someone who does whatever she can to help others. Because someone needs to do it.