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CFP Press Release, November 7, 2002

For Immediate Release
Thursday, November 7, 2002
202-285-0244
www.freedomandprosperity.org

House Small Business Committee Chairman Strongly Opposes IRS Interest Reporting Rule

Washington, DC – Illinois Congressman Don Manzullo, Chairman of the House Small Business Committee, sent a letter seeking the withdrawal of the proposed Internal Revenue Service regulation that would require the reporting of bank deposit interest paid to nonresident aliens. Rep. Manzullo stated that that the proposed rule "…is a misuse of the regulatory process and is in direct conflict with America's economic interests." Manzullo, a champion for small business, warns that the regulation will chase away capital, money that is needed in America for the creation and expansion of small businesses. The following are excerpts from the letter to the Internal Revenue Service:

Harm Competitiveness and Borrowers

"This regulation would significantly harm the competitiveness of America's financial institutions, which would directly harm millions of America's borrowers."

Growth Capital will "Evaporate"

"As Chairman of the House Small Business Committee, I am concerned that U.S. small businesses, typically those most in need of financial backing, will have their access to growth capital evaporate during these difficult economic times.  This hardly seems the ideal time to promulgate a regulation that will drive more capital out of the American economy."

IRS Regulatory Abuse

"I find it troubling that you chose to reissue an old proposal that Congress has already determined to be bad for America and in conflict with Congressional intent. Congress has discussed this issue on many occasions in the past, an in every instance has chosen not to require the reporting of this income paid to nonresident aliens. In April of 2002, I joined nearly 50 of my colleagues in opposition to this regulation the last time you proposed it. The letter urged the President to permanently withdraw the proposed IRS regulation."

You Did Nothing to Mitigate the Damage to America

"The regulation was withdrawn, but then re-released to only apply the reporting requirement to citizens of 15 specific countries.  You may have modified the focus of the regulation, but you did nothing to mitigate the damage this regulation will assuredly cause America."

Don Manzullo 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), Pete Sessions (R-TX) and Todd Akin (R-MO) have also objected to the proposed IRS rule.

Link to the full text of Rep. Manzullo's letter:
http://www.freedomandprosperity.org/ltr/manzullo-irs/manzullo-irs.shtml

CFP's dedicated web page on withdrawing the proposed IRS regulation. http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

 

Additional Links:

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

Link to Rep. Sessions' letter:
http://www.freedomandprosperity.org/ltr/petesessions-irs/petesessions-i rs.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

Letter from House Ways and Means Committee Chairman Bill Thomas – July 22, 2002
http://www.freedomandprosperity.org/ltr/thomas/thomas.shtml

Letter from 46 Lawmakers Urging Withdrawal of Clinton-Era IRS Regulation: Accuse IRS of Putting Foreign Tax Collectors Ahead of US Economic Interests – April 5, 2002

http://www.freedomandprosperity.org/press/p04-09-02/p04-09-02.shtml

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:
http://www.freedomandprosperity.org/ltr/daniels/daniels.shtml

CFP 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
http://www.freedomandprosperity.org/press/p11-06-01/p11-06-01.shtml

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