Rand Paul sues Obama over foreign banking law

Senator Rand Paul

Senator Rand Paul

Ralph Z. Hallow writing for The Washington Times Tuesday reports that Sen. Rand Paul officially sued the Obama administration, seeking to stop it from enforcing a federal banking law that has led large numbers of Americans overseas to renounce their citizenship.

Paul joined six other plaintiffs in a suit filed by Republicans Overseas Action (ROA), arguing that the Foreign Account Tax Compliance Act (FATCA) is unconstitutional.

Senator Rand Paul

Senator Rand Paul

The lawsuit maintains Mr. Paul has unique standing as a plaintiff since it argues the Obama administration violated the right of himself and other 99 senators to advise and consent on agreements with foreign countries.

The 2010 law, passed by a Democratic Congress, has been a centerpiece of President Obama’s campaign to crack down on wealthy Americans he says have been dodging taxes by hiding their money overseas according to Hallow’s report.

The law has become enormously controversial, empowering foreign banks to turn over overseas Americans’ private information to foreign governments, who then must turn it over to the Treasury Department.

The lawsuit argues the agreements the Treasury Department reached with foreign countries to gain access to Americans’ banking information violates the Constitution’s Article II, Section 2 that requires two-thirds of U.S. senators present and voting to approve a foreign treaty.

Click here for more from The Washington Times.