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For Immediate Release
Monday, October 28, 2002
202-285-0244
www.freedomandprosperity.org
House Rules Committee Member Denounces IRS Information Sharing Regulation;
Pete Sessions: IRS "Proposal is an Abuse of the Regulatory Process"
Link to Rep. Pete Sessions' letter
Washington DC (October 28, 2002) -- Congressman Pete Sessions (R-TX) is "deeply concerned that the IRS is allowing personal ideology to interfere with the lawful conduct of its regulatory
responsibilities." Rep. Sessions, member of both the House Rules Committee and the House Banking Committee, urged the "immediate withdrawal" of the "slightly modified version of a Clinton-era regulation that will
require U.S. banks to report the deposit interest they pay to nonresident alien account holders." Pete Sessions is the latest member of Congress to express his disapproval of the proposed IRS regulation that
many experts predict will chase hundreds-of-billions of much needed savings from U.S. bank accounts. In the last few weeks Reps. Phil Crane (R-IL), Mark Foley (R-FL) and Todd Akin (R-MO) have also objected to the
proposed IRS rule.
Excerpts from Rep. Sessions' letter:
Abuse of the regulatory process
"This proposal is an abuse
of the regulatory process. The IRS is supposed to promulgate regulations to help enforce the laws approved by Congress and signed by the President. But this regulation overturns existing law and clearly flouts
Congress' goal of attracting capital to the U.S. economy.
Needs cost/benefit analysis
"[T]he IRS failed to perform a legally
required cost/benefit analysis. Indeed, the Service actually had the nerve to claim that this rule is an interpretive regulation and thus exempt from important parts of the law governing regulatory review."
Regulation blocks President Bush's tax reform agenda
"I am worried that this regulation will create a roadblock for the President's tax
reform agenda. Almost all tax reform plans are based on key principles, including the fact that income should not be taxed more than one time. Another key principle is territorial taxation, the common sense notion
that governments do not try to tax income earned in other nations. Yet the IRS regulation is explicitly designed to help foreign governments impose a second layer of tax on U.S.-source income.
Link to Rep. Sessions' letter:
http://www.freedomandprosperity.org/ltr/petesessions-irs/petesessions-irs.shtml
PDF of Rep. Sessions' letter:
http://www.freedomandprosperity.org/ltr/petesessions-irs/petesessions-irs.pdf
CFP's dedicated web page on withdrawing the proposed IRS regulation. http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml
Rep. Crane's letter:
http://www.freedomandprosperity.org/press/p10-01-02/p10-01-02.shtml
Rep Foley's letter:
http://www.freedomandprosperity.org/press/p10-03-02/p10-03-02.shtml
Rep. Akin's Letter:
http://www.freedomandprosperity.org/ltr/akin-irs/akin-irs.shtml
IRS Regulation:
http://www.treasury.gov/press/releases/reports/po33011.pdf
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