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Senator Rand Paul on Tuesday 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.  In a move with implications for his 2016 presidential bid, Mr. 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. 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.  But it 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.
 “This lawsuit speaks volumes about the Obama administration’s lawlessness and disregard for the Constitution,” said Jim Bopp Jr., lead attorney for the plaintiffs who, collectively, have eight separate constitutional claims against the law and its enforcement mechanisms.

Mr.. Bopp noted he had only one Constitutional claim in the landmark Citizens United vs. FEC case, for which he was the original architect.  A total of 1,335 Americans renounced their U.S. citizenship during the first three months of 2015, according to figures released by the IRS.

That suggests U.S. renunciations will hit another new high this year. Last year, 3,415 Americans gave up their citizenship — 15 times more than in 2008.  “Americans overseas are suffering egregious unconstitutional violations of their privacy and are facing draconian fines by the vigorous enforcement of the law by the Obama administration,” said Mr. Bopp. “The vast majority of overseas Americans are law-abiding middle class Americans, but the Obama administration treats them all as tax cheats.”   “We want the federal court to stop Obama’s Internal Revenue Service by immediately issuing a preliminary injunction that will protect Americans overseas until a trial can be held by the court.,” Mr. Bopp said.  Critics emphasize the government overreach that they say the law’s efforts to nail tax cheaters represents.