The Internal Revenue Service has proposed a regulation (133254-02) that would require U.S. financial institutions to report bank deposit interest paid to certain nonresident aliens. The IRS admits that the information is not needed to enforce U.S. tax law, and instead seeks to collect the information so it can be provided to the tax authorities of 15 specified nations. But since nonresident alien depositors easily can shift their funds to other jurisdictions if they wish to protect their privacy, the regulation has attracted considerable opposition. Critics fear the regulation would drive capital from the U.S. economy and undermine the competitiveness of American financial institutions.

The Center for Freedom and Prosperity, joined by more than 30 of the country’s largest and most influential free-market groups, urged Treasury Secretary Paul O’Neill to “immediately” withdraw the proposed regulation to require the reporting of bank deposit interest paid to nonresident aliens (REG-133254-02). In the letter sent Wednesday to the Treasury Secretary, the members […]

The Center for Freedom and Prosperity, joined by more than 30 of the country’s largest and most influential free-market groups, applauded Rep. Bill Thomas, Chairman of the House Ways and Means Committee, for trying to fix the provisions of the tax code that make it difficult for U.S.-based companies to compete in international markets. In […]

More than 20 of the country’s largest and most influential free-market groups urged the chairmen and ranking members of the House and Senate tax writing committees to reject fiscal protectionism and instead reform the internal revenue tax code so that American companies would not have a reason to relocate overseas. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ April 24, 2002 Identical […]

More than 20 of the country’s largest and most influential free-market groups asked Treasury Secretary Paul O’Neill to support a territorial tax system for corporate income. Based on the common sense notion that governments should tax only the income earned inside their borders, a territorial tax system for corporate income would dramatically boost the competitiveness […]

Letter from 27 of the Country’s Most Prestigious Free Market Groups Urging the Bush Administration to Oppose the Clinton-Era IRS Bank Deposit Interest Regulation ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ December 19, 2001 Mitchell E. Daniels, Jr. Director Office of Management and Budget Old Executive Office Building 725 17th Street, NW Washington, DC 20503 Dear Mr. Daniels, By declaring most […]

CF&P and the Coalition for Tax Competition advocate pulling IRS regulation on the reporting of bank deposit interest paid to nonresident aliens in a letter to the Senate ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ November 1, 2001 Dear Senator: The economy is performing below its potential. Workers are losing jobs, families are watching investments drop in value, and businesses are […]

More than twenty-five prominent free-market leaders and supporters of individual liberty sent a letter to President George W. Bush to express concerns that proposed money laundering legislation will undermine international cooperation in the fight against crime. The letter pointed out that threats of financial protectionism will create animosity and instead advocated that the United States […]