Contact Information:

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

CFP Update, June 19, 2001

Center for Freedom and Prosperity's Weekly Update

1) Washington Update

2) Influential Congressman Rep. John Boehner Speaks Out Against Information Exchange

3) Quinlan and Mitchell to testify at IRS Public Hearing

4) Center for Freedom and Prosperity's Strategic Memo on the current situation with the OECD

5) The Saint Louis Declaration

6) Dan Mitchell defends Bermuda's re-insurance industry from anti-competitive attacks

7) George Will applauds Ireland's "NO" vote to join the EU

8) Coalition of Industry Leaders Urge O'Neill to Dump the OECD's HTC Plan

9) Leading Privacy Advocate Brad Jansen Comments on Information Exchange Dangers

10) U.S. Postal Service is reporting innocent activity to federal law enforcement

11) CFP News Clips

 

1) Washington Update

As you have seen in the news, there have been important developments in the battle for tax competition, financial privacy, and fiscal sovereignty. On the positive side, it appears that we have achieved all of our short-term objectives. The blacklist and threat of sanctions likely will be delayed, and the tax harmonization aspect of the OECD campaign has been thwarted. On the negative side, it is still not clear whether we have stopped the assault on financial privacy. As mentioned in Dan Mitchell's memo last week, information exchange is desirable in the fight against crime. It is not okay, however, when it is used in an indiscriminate fashion to enforce bad tax laws on an extra-territorial basis. In the coming months, we will be fighting to ensure the correct outcome. The Strategic Memorandum we issued this weekend is included in this update and we also have some news clips at the end of this update.

In addition, we have two more important developments.  Rep. John Boehner has sent a letter to Treasury Secretary Paul O'Neill urging him to oppose the OECD/EU indiscriminate information exchange scheme.  And second, Dan Mitchell and I will be testifying before an open IRS hearing this Thursday on the IRS's new regulation to give foreign governments information on who invests in America's financial institutions.  If successful, the IRS regulation will cause massive capital flight from the U.S.

2) Influential Congressman Rep. John Boehner Speaks Out Against Information Exchange

One of the senior members of Congress, Chairman of the House Education and the Workforce Committee, asks Treasury Secretary O'Neill to dump the OECD and EU "information exchange" proposals.  Rep. John Boehner of Ohio praises O'Neill for his stance on the anti-tax competition phase of the OECD/EU plan and believes that "disapproval of the information exchange initiatives will preserve America's competitive advantage in the global economy."  Link to letter below:
http://www.freedomandprosperity.org/ltr/boehner/boehner.shtml

3) CFP President to testify at IRS Public Hearing on reporting of deposit interest paid to nonresident aliens the first legislative/regulatory skirmish to stop indiscriminate information exchange.

CFP's President, Andrew Quinlan, and Dan Mitchell of the Heritage Foundation will testify at a public hearing on a proposed regulation to require reporting of deposit interest paid to nonresident aliens. The hearing is scheduled for Thursday, June 21, 2001, beginning at 10 a.m. in Room 4718, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

This new regulation would be devastating to the US economy since it will force a large amount of foreign investment to move somewhere else. This was the Clinton administration's midnight attempt before they left office to implement unilateral indiscriminate information exchange with other countries.

Additional information linked below:

CFP web page on Dumping the IRS Information Sharing Reg:
http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

Dan Mitchell's op-ed on the issue:
http://www.freedomandprosperity.org/Articles/twt02-01-01/twt02-01-01.shtml

Marshall J. Langer:  Proposed Interest Reporting Regulations Could Cause Massive Outflow of Funds:
http://www.freedomandprosperity.org/Articles/tni03-19-01/tni03-19-01.shtml

Florida Congressional Delegation Speaks Out Against Proposed IRS Regulation
http://www.freedomandprosperity.org/ltr/fla-oneill/fla-oneill.shtml

4) Center for Freedom and Prosperity's Strategic Memo on the current situation with the OECD

The Center issued a memo written by Dan Mitchell of the Heritage Foundation.

The memo was prompted by the OECD's gift of "spin control." As such, we expect that they will renew pressure on low-tax jurisdictions by claiming that the United States has decided to support the OECD view of information exchange. This is not the case, and the memo below explains why this is not true.  Low-tax jurisdictions should not allow themselves to be bullied or misled. Link to memo below:
http://www.freedomandprosperity.org/Papers/m06-16-01/m06-16-01.shtml

Tax-News.con story on memo:
http://www.tax-news.com/asp/story/story.asp?storyname=4080

5) The Saint Louis Declaration

Taxpayers of the World Unite: 33 Groups across the Globe Denounce EU/OECD Tax Cartel Scheme:
http://www.ntu.org/01conf/P010615StLouisDec.html

6) Dan Mitchell defends Bermuda's re-insurance industry from anti-competitive attacks.

June 19, 2001 , Investor's Business Daily, by Daniel J. Mitchell, Bermuda Vacation: Its Tax-Free Policy Has Self-Interested U.S. Pols Disturbed:
http://www.freedomandprosperity.org/Articles/ibd06-19-01/ibd06-19-01.shtml

7) George Will, one of America's leading opinion makers, applauds Ireland's "NO" vote to join the EU

June 14, 2001, by George Will, Ireland's stand for freedom:
http://www.sacbee.com/voices/national/will/will_20010614.html

8) Coalition of Industry Leaders Urge O'Neill to Dump the OECD's Anti-Tax Competition Project

The letter was signed by the U. S. Council for International Business, U.S. Chamber of Commerce, Financial Executives International, National Foreign Trade Council, National Association of Manufacturers, and the Tax Council:
http://www.freedomandprosperity.org/ltr/business/business.shtml

9) Leading Privacy Advocate Brad Jansen Comments on Information Exchange Dangers

June 8, 2001, Free Congress Commentary By J. Bradley Jansen, Information Exchange Dangers. Links below are for Brad's commentary and additional news articles on privacy:
http://www.freecongress.org/press/offpress/010608BJfcc.htm

Privacy news:

June 11, 2001, Computerworld (CNN.com), By Joris Evers (IDG), European 'safer Internet' site hit by hackers
http://www.cnn.com/2001/TECH/internet/06/11/safer.net.hack.idg/index.html

IRS network vulnerable to malicious hackers, GAO says. Full report linked below:
http://www.gao.gov/new.items/d01306.pdf

10) U.S. Postal Service is reporting innocent activity to federal law enforcement, violating Constitution's protection against unreasonable search and seizure

Since 1997, the U.S. Postal Service has been conducting a customer-surveillance program, 'Under the Eagle's Eye,' and reporting innocent activity to federal law enforcement.

Insight Magazine, Postal Service Has Its Eye on You, By John Berlau
http://www.insightmag.com/archive/200107033.shtml

11) CFP News Clips

Wall Street Journal, June 15, 2001, By Michael M. Phillips, Economy: U.S., Allies To Ease Curbs On Offshore Tax Havens
http://www.freedomandprosperity.org/Articles/wsj06-15-01/wsj06-15-01.shtml

Tax-news.com, June 14, 2001: OECD May Delay Sanctions
http://www.tax-news.com/asp/story/story.asp?storyname=3993

Bloomberg News, June 12, 2001, By Michael Bleby, OECD Likely to Push Back Tax Haven Sanctions Deadline
http://www.freedomandprosperity.org/Articles/bb06-12-01/bb06-12-01.shtml

CFP News Summary (World Tax Daily), June 14, 2001, U.S. and OECD Inch Toward Tax Haven Deal
http://www.freedomandprosperity.org/Articles/sum06-14-01/sum06-14-01.shtml

June 2001, Businessweek Online, By Howard Gleckman, Laughing All the Way to an Offshore Bank?:
http://www.businessweek.com/bwdaily/dnflash/jun2001/nf20010619_671.htm

June 13, 2001, Tax-News.com, by Mike Godfrey, CFP Warns Offshore Jurisdictions About Information Exchange:
http://www.tax-news.com/asp/story/story.asp?storyname=3980

June 15, 2001, National Post, by Terence Corcoran One step closer to a police state:
http://www.nationalpost.com/commentary/columnists/story.html?f=/stories/20010615 /592212.html

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June 14, 2001, Tax-News.com, by Jeremy Hetherington-Gore, If You Want To Stay Free, Don't Go To France!:
http://www.tax-news.com/asp/story/story.asp?storyname=4001

Best regards,

Andrew Quinlan
Center for Freedom and Prosperity
President
202-285-0244
208-728-9639 (efax)
quinlan@freedomandprosperity.org
www.freedomandprosperity
.org

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