Contact Information:

Center for
Freedom and Prosperity
 P.O. Box 10882
Alexandria, Virginia 22310-9998
Phone: 202-285-0244
Fax: 208-728-9639
                                            

The Sovereign Society Offshore A-Letter

The Sovereign Society
Offshore A-Letter
July 26, 2002

COMMENT: Termites at Work.

Dear A-Letter Reader:

After eight years in the US House of Representatives, I served for a short time in the federal civil service. There I learned that almost every criticism I previously had leveled against government bureaucrats was all too true.

In the US government career civil servants see political appointees as a nuisance. Presidential elections may change political control of the executive branch in theory, but a new crop of managers are greeted by civil servant drones who feign obedience, but secretly follow their own agendas.

Most of these people are not conservatives. Big government and spending your tax money is their life blood. Many of these termites thwart presidential policies at every turn, unless and until they are forced to tow the White House line -- if there is one. Faceless bureaucrats make decisions that don't generate headlines, but that often represent enormous threats to America's best interests.

This review is prompted by the welcome announcement by the Center for Freedom and Prosperity that 'several senior Bush Administration sources' have said that the US 'has rejected any participation in the European Union savings tax directive.'

This diabolical scheme would allow high tax EU countries to collect foreign taxes on income earned outside their borders from those who invest in the US. The US is a major tax haven that imposes few taxes on foreign investors, thus we are home to over US$9 trillion in foreign investments, which our economy badly needs.

Career bureaucrats at the IRS and US Treasury have been trying to gain acceptance of thr EU plan, which could push trillions out of the US economy, driving stock markets even lower, killing US jobs.

I hope the CFP is correct in its claim that the Bush Administration opposes the EU plan. If so, it will encourage Switzerland and other non-EU nations to continue to oppose this cross border tax grab. And without US and Swiss agreement, the EU plan will indeed die.

At least one member of Congress seems to recognize the EU for what it is. House Speaker Dennis Hastert (R-Ill) told the Wall Street Journal yesterday: "As long as I am speaker I will resist being controlled by what somebody dictates in the European Union. I don't know all the tax ins and outs, but I'm smart enough to smell a rat."

That's the way that it looks from here.

BOB BAUMAN, Editor

=============================

COMMENT LINKS:

* CFP Hails Death of EU Savings Tax Directive. LINK:
http://www.freedomandprosperity.org/press/p07-24-02/p07-24-02.shtml

* EU tax plan will hurt U.S. economy. The Cato Institute.
  LINK:
http://www.cato.org/dailys/07-23-02.html

* CFP web page on defeating EU savings tax directive.
  LINK:
http://www.freedomandprosperity.org/eu/eu.shtml

 

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