FATCA Goes Into Effect Next Week, As Rhetoric Goes To 11

The six-month extension on the Foreign Account Tax Compliance Act (FATCA) starts on July 1, and both sides have switched into rhetorical high gear over the controversial law, with opponents comparing it to a bombing campaign and proponents dismissing all criticism as coming from financiers defending tax cheats (note: as an American living abroad, I’m not disinterested).

Worst case scenarios are hard to believe

To be sure, some of the hysterics don’t pass the laugh test. Some people have warned that the regulations are so onerous that financial institutions are going...