Center for Freedom and Prosperity's Weekly Update

     This weekly update arrives early because of our delegation going to the OECD task force meeting in Paris, and it is full of important and timely information. Most importantly, the IRS's deadline is tomorrow for you to lodge your disapproval of their new proposed regulation. Also, CFP releases its Strategic Memo sent to the low-tax countries participating in the Paris task force meeting. We also have more press reports that the Bush administration could abandon the OECD initiative. Patting ourselves on the back, our final item is a reprint of a profile on the Center by the prestigious National Journal.

1) IRS Regulations, Deadline for comments is TOMORROW
2) CFP Press Release on Paris Trip
3) CFP's Paris Task Force Strategy Memo:
4) CFP's Paris Contact Information
5) WSJ News Report: "U.S. Could Abandon Initiative to Crack Down on Tax Havens"
6) National Journal Profile on Center: "Anti-Tax Group Goes Global"
7) Tax-News.Com Recognizes CFP's Hard Work

1) IRS REGULATIONS, DEADLINE FOR COMMENTS IS TOMORROW

Please contact the IRS and SAY NO to proposed IRS regulation on requiring US financial institutions to report interest income to foreign governments. Deadline is Tuesday, February 27, 2001

This new regulation would be devastating to the US economy since it will force a large amount of foreign investment to move somewhere else.

Please make sure you contact the IRS (I have web address below). Also, please send this note to your friends, relatives, co-workers,. . .

I have below some suggested language if you want to leave a note with your email of disapproval.

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     We live in a democracy, meaning that laws are made by elected officials rather than unelected bureaucrats. Yes, agencies have the authority to issue rules, but only rules that implement laws that have gone through the legislative process. At no point, though, has Congress approved legislation indicating that it wants to impose this new reporting requirement on banks. The IRS should not try to change laws. And they certainly should not try to change laws when the likely outcome will be to drive capital out of the United States and undermine our economy's performance. If it is to be decided that foreign-owned accounts at US banks should be taxed, elected lawmakers should be the ones making the decision. And if they do make that decision, the tax should flow to the US Treasury, not to a foreign government. There is a simple principle that the IRS should realize: Countries have the right to tax income that is earned inside their borders.  

     The IRS is wrong to risk our economy's performance just so they can help foreign governments tax income that is being earned in America. I strongly oppose this regulation. I oppose this regulation because it is against America's economic interests. I oppose this regulation because it undermines America's sovereign right to tax the income that is earned inside our borders. And I oppose this regulation because it replaces the Constitutionally prescribed lawmaking process with bureaucratic edicts. I ask that this regulation be withdrawn.

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[PLEASE NOTE:  SOME TIMES THE HYPERLINK IN YOUR EMAIL VIEWER WILL CUT OFF THE SECOND LINE OF A LONG EMAIL ADDRESS, PLEASE NOTE THAT THIS ADDRESS IS OVER TWO LINES]
http://www.irs.gov/cgi/regs/fixstring/PROD?Guidance%20on%20Reporting%20of%20 Deposit%20Interest%20Paid%20to%20Nonresident%20Aliens

Here is the IRS's description of what they are doing:
http://ftp.fedworld.gov/pub/irs-regs/12610000.pdf

Dan Mitchell's op-ed on the issue (Full Op-ed Link Below):
http://www.freedomandprosperity.org/Articles/twt02-01-01/twt02-01-01.shtml

2) PRESS RELEASE:
   CFP Takes Tax Battle to Heart of Enemy Territory,
   Releases Strategy Memo for Paris Task Force Meeting
   (Full press release link below)
   http://www.freedomandprosperity.org/press/p02-26-01/p02-26-01.shtml

3) PARIS TASK FORCE STRATEGY MEMO:

The Center for Freedom and Prosperity has sent a strategic memorandum to the low-tax countries participating in the Paris OECD task force meeting.  The memo exposes the OECD's bad faith behavior and highlights several points that should be addressed during the discussions.  (full memo linked below)

http://www.freedomandprosperity.org/press/m02-24-01/m02-24-01.pdf

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4) CFP's PARIS CONTACT INFORMATION

The Center's delegation will be staying at the Hotel Brebant located at 30-32 Boulevard Poissonniere, Paris, 75009 (Phone: 01 47 70 25 55 & Fax:  01 42 46 65 70)

Please contact us there if you would like to set up a meeting. You may also leave a message at 202-285-0244 or email us at paris@freedomandprosperity.org

5) U.S. COULD ABANDON INITIATIVE TO CRACK DOWN ON TAX HAVENS
     The Wall Street Journal, By Michael M. Phillips
     February 22, 2001

     "WASHINGTON -- The Bush administration is considering backing away from an international campaign to crack down on tax havens such as Panama, Monaco and the Bahamas." (Full article linked below)
http://www.freedomandprosperity.org/Articles/wsj02-22-01/wsj02-22-01.shtml

6) ANTI-TAX GROUP GOES GLOBAL
   National Journal, by Louis Jacobson
   Saturday, February 24, 2001

     "Bush Administration officials take notice. A new conservative group calling itself the Center for Freedom and Prosperity is sending a pointed message to the White House and to the Treasury Department: Washington isn't the only anti-tax battleground." (Full article linked below)
http://www.freedomandprosperity.org/Articles/nj02-24-01/nj02-24-01.shtml

7) TAX-NEWS.COM RECOGNIZES CFP's HARD WORK
Is The US Treasury Department Poised To Distance Itself From OECD Blacklist?

     "Much of the impetus behind the efforts to change US policy on this and related issues comes from the Center for Freedom and Prosperity, a recently-formed group of conservative activists with a long history of involvement in tax reform." (Full article linked below)
http://www.freedomandprosperity.org/Articles/t-n02-26-01/t-n02-26-01.shtml

Kind regards,

Andrew Quinlan
Center for Freedom and Prosperity
President
202-285-0244
603-971-9137 (efax)
quinlan@freedomandprosperity.org
www.freedomandprosperity.org

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