“Parasitic” Costs of FATCA “Financial Bondage”

Here are a couple of well researched and presented papers on the economic costs of FATCA.

From a Canadian perspective, Mary Blackhill and McMaster University Emeritius Economics professor Stuart Mestlemen did an excellent analysis of the Costs of FATCA to Canada.

They estimate the annual cost to the Canadian economy is between $120 million and almost $2.6 billion (U.S.) They point out the cost is much higher given the exchange rate.

Of course, there is also the very real human cost, costs to financial institutions, costs to Canadian taxpayers and other costs.

Blackhill and Mestlemen report U.S. tainted people consider the Canadian government:

An appallingly poor protector of Canadian interests, Canadian sovereignty and the Canadian people.

The authors conclude:

As long as U.S. citizenship-based taxation is supported by Canada (and other governments), the United States will continue to hold the world in financial bondage.

From an American perspective, More Than Just Numbers: The Legal Dilemmas and Economic Repercussions of FATCA was written by an American Economics professor Brian Mottl.

Professor Mottl says:

FATCA has led to a parasitic relationship between the United States and foreign institutions where the US benefits from the assets reported, and the foreign financial institutions are bullied…

Professor Mottl reports on the economic costs to the American economy, the violation of the sovereignty of other nations, strained foreign relations and more.

Perhaps the most important point Professor Mottl makes is:

FATCA must be repealed because it violates international law.

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