Contact Information:

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

U. S. House of Representatives

[PDF Version]

January 10, 2003

The Honorable George W. Bush
President of the United States
The White House
1600 Pennsylvania Avenue Northwest
Washington, DC 20500

Dear Mr. President:

We are writing to applaud your economic growth package. By eliminating the double-taxation of dividends and lowering marginal tax rates on productive behavior, your proposal will boost the economy and make America more competitive.  This will mean better jobs and higher wages for American workers.  Moreover, we believe your proposal is an important step toward fundamental tax reform.  Your proposals to fix the tax code are based on common-sense principles such as taxing economic activity only one time, and taxing economic activity at low rates.  The core elements of your tax package reflect these important goals.

But we also want to take this opportunity to express our opposition to a proposed IRS regulation (REG-133254-02) that would compel American banks to report the deposit interest paid to nonresident aliens.  This burdensome new proposal - a legacy of the previous Administration - is not needed to enforce U.S. tax law or combat illegal money laundering.  It will only harm financial markets by driving capital out of the American economy.  Indeed, the Chairman of the Federal Deposit Insurance Corporation recently warned that it could undermine the safety and soundness of our banking system by leading to a large loss of deposits.

        This regulation could severely undermine the pro-growth provision of your tax package.  Some economists believe hundreds of billions of dollars will flee our economy and that gross domestic product will drop by 0.8 percent if the regulation is finalized.  Even if the actual damage is just a fraction of these estimates, this is too high of a cost to pay for a regulation that would overturn - by bureaucratic edict - decades of government policy designed to attract capital to the U.S. economy.

This regulation should be withdrawn.

Sincerely,

Pat Toomey
Robert Aderhold
Todd Akin
Judy Biggert
Dan Burton
Chris Cannon
Phil Crane
Jim Davis
Jim DeMint
Lincoln Diaz-Balart
Mark Foley
Randy Forbes
Melissa Hart
J.D. Hayworth
Peter Hoekstra
John Hostettler
Jack Kingston
Mark Kirk
Don Manzullo
Gregory Meeks
Jeff Miller
Bob Ney
Butch Otter
Ron Paul
Mike Pence
Joseph Pitts
Ileana Ros-Lehtinen
Edward Royce
Pete Sessions
John Shadegg
Cliff Stearns
Pat Tiberi
Melvin Watt
Dave Weldon
Joe Wilson

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