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Bucking pressure from businesses and fellow lawmakers, Sen. Rand Paul says he will continue to oppose tax treaties that would let the Internal Revenue Service gather more information about Americans overseas financial accounts.

The move dims the outlook for a planned Senate vote on the treaties, while highlighting the Kentucky Republicans contrarian streak. The treaties including a significant one with Switzerland enjoy widespread support among lawmakers of both parties. But Mr. Paul, who is preparing a 2016 presidential bid, believes they would encourage government snooping and erode Americans privacy rights.

Sen. Pauls opposition has held up action on the tax treaties since soon after they were sent to the Senate in 2011. Sen. Paul has placed hold on the treaties, meaning that the Senate would have to spend days on procedural moves to vote on any of the treaties.

In a letter to Senate Majority Leader Harry Reid (D., Nev.) on Wednesday, Sen. Paul said he would renew his hold on the treaties for the current session of Congress. The treaties were recently recommended by a Senate committee, and lawmakers had been seeking a floor vote on them soon. Now those votes are in doubt, and leaders will have to weigh whether to sacrifice days of floor time to pass them.

Justice Department officials as well as executives of Swiss banks have blamed Senate inaction on the U.S.-Switzerland treaty for impeding a federal investigation into Americans overseas tax dodging, as well as the role of some Swiss banks. That has fueled criticism of Mr. Pauls opposition by some lawmakers on Capitol Hill. He also has been lobbied by U.S. multinational businesses that could benefit from the treaties.

The pressure has led to speculation that Mr. Paul would relax his opposition this year, as the Senate tries again to pass the proposed treaties with Switzerland, Luxembourg and several other countries.

In his letter to Mr. Reid, Mr. Paul also said the treaties would discourage investment in the U.S. by making it more difficult to do business with Americans.

To be clear, I certainly do not condone tax cheats, but I cant support a law that endangers regular foreign investment and punishes every American in pursuit of a few tax cheats, he wrote. Most importantly, I cannot support a bulk collection tax treaty that has complete disregard for the important protections provided to every American by the Fourth Amendment.

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Continued here:
Rand Paul Fights Tax Treaties Citing Privacy Concerns