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World

U.S. voters abroad unite against a painful tax

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Opening sequence

World

U.S. voters abroad unite against a painful tax

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COMING UP:U.S. voters abroad unite against a painful tax

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Transcript

00:00:00
>> And believe it or not I regret it.>> Stick with Trump or get behind Hillary? It's a question vexing some Republicans. But for Americans overseas, there may be a much bigger issue at play. Reaching across borders and uniting people from both parties, FATCA is a wide ranging US tax law set up to combat money laundering five years ago and requiring American to file information about their foreign bank accounts.
00:00:25
Those foreign banks must in turn disclose data about their US clients. I'm Reuters correspondent Tora Jensen in Hong Kong. FATCA may sound like tedious bureaucracy but it's a real problem for the nearly 9 million Americans living overseas, many of problems taking out a mortgage when they go to a foreign bank or even opening a basic bank account.
00:00:48
That's because foreign banks don't like having the IRS looking over their shoulder. Along with the extra cost's of compliance checks now there are calls to over turn the law. Critics say it discourages Americans from living and working abroad. Michael Desombra runs a global organization for republicans living abroad, he calls FATCA unconstitutional.
00:01:12
>> There's 8.7 million Americans living overseas. That would be the 12th-largest state of the union if we all were in 1 location. Americans overseas are really the front line of exporting goods and services and being the ambassadors of American overseas. And often service the frontline in interaction between America and the rest to the word.
00:01:32
And we want people to do that.>> FATCA supporters say the lost Donald's fair share of cleaning up international money laundering, but now it's not just Republicans complaining of IRS overreach. The group Democrats Abroad is also calling for the law to be pruned back. Saying it's come to mean stress, humiliation and exclusion for Americans living far from home.