FOR IMMEDIATE RELEASE:
June 26, 2019
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Yesterday, U.S. Senator Rand Paul (R-KY) continued his fight to protect the privacy of innocent Americans as the U.S. Senate Foreign Relations Committee marked up tax treaties with Spain, the Swiss Confederation, Japan, and Luxembourg.
During the meeting, Dr. Paul offered a reservation to each treaty to ensure the United States can only request, accept, or share a taxpayer’s deposit account information if there is a reasonable basis to believe that person may not have complied with tax laws. A reservation would change U.S. obligations without changing the text of the treaty.
As part of those reservations, Dr. Paul included a provision to establish the effective dates of the treaties with Spain, the Swiss Confederation, and Japan retroactive to the date on which each was submitted to the Senate. This would allow entities subject to the treaty to enjoy the advantages of an improved tax regime as if there had not been a delay because of the refusal of the Obama administration to negotiate on the treaties.
The Senate Foreign Relations Committee unfortunately voted to reject these reservations.
“Washington seems to find it hard to believe it is possible to enforce the law while at the same time taking Americans’ privacy seriously. The benefits of these treaties simply do not outweigh the potential for abuse. The reservations I offered would have put Americans’ interests first without preventing the treaties from moving forward,” said Dr. Paul.
Since entering the Senate, Dr. Paul has demanded our tax treaties provide basic due process protections for Americans. While recognizing their positive aspects, Dr. Paul has sought full consideration and examination of their implications for Americans’ privacy due to a low standard of information collection based on what a nation decides is relevant.