Contact Information:

Center for
Freedom and Prosperity
 P.O. Box 10882
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CF&P E-Mail Update, November 1, 2002

Center for Freedom and Prosperity's E-mail Update

1) Washington Update

2) White House Reiterates Opposition to EU Savings Tax Cartel

3) UPI: U.S. to Europe: Butt out of our bank accounts

4) We Need Your Help: Stop IRS Regulatory Abuse

5) Pete Sessions Denounces IRS Information Sharing Regulation

6) Todd Akin: Strongly Opposes IRS Information Sharing Regulation

7) Aleman:  Panama and the OECD on International Tax Cooperation . . . a Real Economy

8) CF&P's Effort Pays Off:  Misguided Corporate Inversion Legislation Dies in House

9) UPI: Political inversion

10) U.S. Chamber Urges Congress to Reject Penalties on Offshore American Businesses

11) Mitchell and de Rugy:  Forget the Swiss, Mr Bolkestein. Pick on someone your own size - the US

12) European Draft Constitution endorses tax harmonization: Is anyone surprised?

13) RSC: Gephardt's Corporate Taxes Plan

14) Paul Johnson:  All of Europe Is the Sick Man Now

15) WSJE:  Who Is Protected By EU Privacy Rules?

16) Treasury's Olson Warns Lawmakers To Tread Carefully Over Corporate Tax Changes

17) Prodi calls for "single economic government"

18) Swiss Anti-Money Laundering Laws Effective

19) Mitchell to Speak at Offshore Institute Conference in Miami

20) CF&P Clips

 

1) Washington Update

With Congress out of town, we have been focusing on the EU savings tax directive and the IRS interest reporting regulation. As you can see below, there is great news on the savings tax directive. The White House reiterated its opposition to the EU scheme. Assuming Switzerland, Luxembourg, and other nations don't suddenly self-destruct, this should be the death knell for the proposed cartel.

Regarding the IRS regulation, the Center is working with other allies in a furious effort to kill this misguided proposal. Members of Congress also have jumped in the fight, writing to protest the IRS's effort to overturn existing law. Two new letters are shown below. We also ask everyone possible to contact the IRS and protest this unwise regulation.

The update contains an excellent speech by Foreign Minister Aleman of Panama. We also continue to monitor the corporate inversion issue. Our hard work has yielded dividends, but there is some danger that Congress will try to sneak through some protectionist laws during a lame-duck session after the election.

Last but not least, the Heritage Foundation's Dan Mitchell will be speaking in Miami at the Nov. 18-19 Offshore Institute conference. For more information, see the link near the bottom of the page.

Regards, AQ

 

2) White House Reiterates Opposition to EU Savings Tax Cartel: Free-Market Leaders Hail Administration Stance

[Excerpt from CF&P Press Release]

Washington DC (October 29, 2002) – Moving to erase any ambiguity, the Bush Administration reiterated its opposition to a European Union proposal that would require nations to collect and share private financial information on nonresident investors. Larry Lindsey, the President's senior economic advisor and Director of the National Economic Council, firmly stated that "the Administration does not support the EU Savings Directive -- there is zero interest in it."

Following a similar statement of opposition from Glenn Hubbard, the Chairman of the President's Council of Economic Advisers, the Lindsey proclamation is compelling evidence that the United States will not participate in the EU initiative. And since the "savings tax directive" is explicitly predicated on unanimous support from all 15 EU nations and six non-EU nations, this is the death knell for the controversial initiative.

Supporters of tax competition in the United States reacted favorably to the news. Andrew F. Quinlan, President of the Center for Freedom and Prosperity, stated, "Defeating the EU savings tax cartel has been the Center's top priority. I am extremely gratified that President Bush and his team have rejected this scheme to undermine tax competition, financial privacy, and fiscal sovereignty." [Link to full press release below:]
http://www.freedomandprosperity.org/press/p10-29-02/p10-29-02.shtml

October 30, 2002, Tax-News.com, US Administration Reiterates Opposition To EU Information-Sharing Plans
http://www.tax-news.com/asp/story/story.asp?storyname=9843

 

3) UPI: U.S. to Europe: Butt out of our bank accounts

[Excerpt from UPI's Capital Comment for Oct. 30, 2002]

U.S. to Europe: Butt out of our bank accounts -- The Bush administration has firmed up its opposition to a European Union proposal to require nations to collect and share private financial information on non-resident investors. Larry Lindsey, the president's senior economic adviser and director of the National Economic Council says the administration does not support the directive. "There is zero interest in it," Lindsey says.

U.S. opposition to the plan likely dooms it as the directive is explicitly predicated, according to some analysts, on the unanimous support of all 15 EU nations as well as six non-EU nations, one of which is the United States.

Opponents of the plan are pleased by the news. Dan Mitchell, senior fellow at the conservative, pro-free market Heritage Foundation, said, "The EU's information-sharing proposal would have enabled foreign governments to tax U.S. source income. And because the United States has attracted about $5 trillion of passive investment from overseas, the EU cartel would have harmed America's competitive advantage in the world economy. The administration is defending America's national interests and President Bush deserves thanks from everyone who supports fiscal competition and economic liberalization."

 

4) We Need Your Help: Stop IRS Regulatory Abuse -- Don't Let the Bureaucrats Undermine President Bush

Please contact the IRS by November 14, and let them know you disagree with the proposed regulation (REG-133254-02) that requires U.S. banks to report to the IRS the amount of bank deposit interest paid to foreign depositors, even though the IRS admits that this information is not needed to enforce U.S. tax law and is being requested solely for the benefit of foreign governments.

The proposed regulation is based on a similar regulation (REG-126100-00) proposed during the final days of the Clinton Administration. The only significant difference is that the original Clinton regulation required reporting on all foreign depositors, whereas the latest proposal targets residents of 15 major nations.

We need your help to defeat the IRS!

The IRS is required to accept letters and e-mails from the public during a "comment period." If there is sufficient opposition, they will be forced to withdraw their scheme. Indeed, the IRS already has been forced to modify the original Clinton regulation because of heated opposition from the American people.

There are two main arguments you can use when submitting your public comment:

1. The IRS is abusing its regulatory authority by trying to overturn existing law. Congress approved favorable tax and privacy rules for foreign depositors to attract capital to the American economy. The IRS has no legal authority to overturn this policy.

2. The regulation will harm the U.S. economy by causing money to flee American banks. Foreigners will take their deposits to other nations, and this will mean less capital for car loans, home mortgages, and small business expansion.

Register your Objection to Proposed Regulation Online with the IRS
http://www.irs.gov/app/scripts/ct.jsp?regTitle=Reporting%20of%20Deposit%20Interes t%20to%20Nonresidents

See CF&P's dedicated web page on this IRS Info Sharing Regulation for more information
http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

 

5) Pete Sessions: House Rules Committee Member Denounces IRS Information Sharing Regulation

[Excerpt from CF&P Press Release]

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.  [Link to Rep. Sessions letter below:]

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

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

News Clip:

October 29, 2002, Tax-News.com, by Mike Godfrey, US Congressman Protests IRS Interest-Reporting Rules
http://www.tax-news.com/asp/story/story.asp?storyname=9829

 

6) Todd Akin:  House Small Business Committee Member Strongly Opposes IRS Information Sharing Regulation

[Excerpt from letter]

I am particularly distressed that the IRS is abusing the regulatory process by blatantly ignoring the will of Congress. Existing law -- and legislative history -- clearly shows that lawmakers did not wish this income to be taxed or reported. Yet the IRS wants to overturn the outcome of the democratic process.

Finally, let me be clear that the "new and improved" version of the regulation is just as flawed as the initial proposal. The IRS's decision to temporarily exempt certain deposits from the reporting requirement is a transparent effort to divide-and-conquer, one that assumes that lawmakers, and the banking industry, are too foolish to realize the depositors from all nations will be added to the list in a couple of years. [Link to full letter below:]

Link to Rep. Akin's letter:
http://www.freedomandprosperity.org/ltr/akin-irs/akin-irs.shtml

News Clip:

October 17, 2002, Tax-News.com, Missouri Congressman Challenges IRS On Bank Interest Reporting
http://www.tax-news.com/asp/story/story.asp?storyname=9714

 

7) Aleman: Panama and the OECD on International Tax Cooperation: Presenting the case of a Real Economy

Jose Miguel Aleman, The Republic of Panama's Minister of Foreign Relations, spoke before the International Bar Association Conference last week in Durban, South Africa. Minister Aleman correctly points out that the OECD's imperialistic agenda is contrary to international law.

[Two excerpts from the speech]

"Panama applies the principle of territoriality to residents and non-residents alike...Panama understands, and respects, the sovereign right of other nations to tax income of its national when they are generated from transactions conducted in those foreign nations."

"Panama has made it extremely clear that it will not implement any action unless the same is enacted by all participants in the initiative, particularly those industrialized economies which directly compete with Panama in the supply of international financial services." [See link below for the complete text of the speech:]
http://www.freedomandprosperity.org/Papers/aleman/aleman.shtml

 

8) CF&P's Effort Pays Off: Misguided Corporate Inversion Legislation Dies in House

[Excerpt from CF&P Press Release]

Washington, DC – October 18: The Center for Freedom and Prosperity's 10-month lobbying campaign against misguided anti-inversion legislation paid off Wednesday when the House of Representatives left town without imposing protectionist restrictions on the right to charter in jurisdictions with better tax laws.

"Everyone thought fiscal protectionism was an unstoppable train, so it is very gratifying that our hard work and effort paid dividends," said Andrew Quinlan, President of CF&P. "We will have to re-fight this battle next year, but we continue to believe that we can prevail as more people became aware of the real issues."

As House Speaker Dennis Hastert said, "When you really look in depth, the reason we're losing people offshore is the inequity of our tax code as compared to our competitors overseas."

CF&P's position on corporate inversion was conveyed to Capitol Hill through more that 75 meetings, hundreds of phone calls and thousands of e-mails.  Moreover, 20 of the country's largest and most influential free-market groups, participants in the Coalition for Tax Competition, joined forces in the educational battle. [Link to full press lease below:]
http://www.freedomandprosperity.org/press/p10-18-02/p10-18-02.shtml

News Clips

October 22. 2002, The Royal Gazette, By Lilla Zuill, US debate on offshore moves may flare again
http://www.theroyalgazette.com/apps/pbcs.dll/article?Site=RG&Date=20021022&Categ ory=BUSINESS&ArtNo=110220036&Ref=AR

October 21. 2002, The Royal Gazette, By Lilla Zuill, Corporate inversions – battle is won but the war is not over yet
http://www.theroyalgazette.com/apps/pbcs.dll/article?Site=RG&Date=20021021&Categ ory=BUSINESS&ArtNo=110210017&Ref=AR

October 21, 2002, Tax-News.com, by Mike Godfrey, Congress Ditches 'Corporate Inversion' Legislation
http://www.tax-news.com/asp/story/story.asp?storyname=9742

October 29, 2002, Tax-News.com, by Mike Godfrey, US Academics Study Causes And Consequences Of Corporate Expatriations
http://www.tax-news.com/asp/story/story.asp?storyname=9827

October 29. 2002, The Royal Gazette, New regulations planned over 'inversions'
http://www.theroyalgazette.com/apps/pbcs.dll/article?Date=20021029&Category=BUSI NESS&ArtNo=110290046&Ref=AR

October 23, 2002, Tax-News.com, by Mike Godfrey, Pam Olson Says Fewer US Companies Going Offshore
http://www.tax-news.com/asp/story/story.asp?storyname=9768

October 16, 2002, CNN, by Ted Barrett, GOP leaders pull controversial tax bill: Lawmakers packing bags for campaign trail
http://www.cnn.com/2002/ALLPOLITICS/10/16/house.heads.home/index.html

 

9) UPI: Political inversion

Political inversion -- The House of Representatives left town Wednesday without moving ahead on an anticipated tax bill. The reason, say some insiders, is that Rep. Bill Thomas, R-Calif., chairman of the tax-writing Committee on Ways and Means, wanted to take up a bill that would punish -- in some cases retroactively -- American companies that had decided to reincorporate outside the United States by imposing a new tax on them. These companies have been a political football this cycle, with Democrats claiming they are taking jobs out of the United States while fleeing the burden of their fair share of taxes.

Republicans counter that these inversions, as they are known, are being undertaken because the United States has the 4th -- and soon to be 2nd -- highest corporate tax in the world and because the United States taxes companies based on their worldwide operations rather than regional activities -- the basis of corporate taxes in most other industrialized countries do. The alternative, the GOP says, is for these same companies to be bought out by foreign-owned firms -- reducing the revenue to the U.S. government -- or for them to close and throw thousands of American's out of work.

Members of the Republican conference decided that taking up the issue so close to an election was sure to be a loser for somebody, so they left town without doing anything. Credit for killing the effort, insiders said, should go to the members of the House Republican Study Committee, a group of conservatives who are, on principle, opposed to any new taxes.

[Source: October 18, 2002, United Press International's Capital Comment, Political inversion – Second Item, http://www.upi.com/view.cfm?StoryID=20021017-050354-1570r]

 

10) U.S. Chamber Urges Congress to Reject Penalties on Offshore American Businesses

[Excerpt from Press Release:]

The United States Chamber of Commerce today urged the U.S. Congress to reject legislation that would penalize American businesses that locate their headquarters offshore in an effort to compete with foreign companies who have an unfair tax advantage over U.S. companies.

"Penalizing American businesses – that employ American workers and produce American products – for creating an offshore headquarters will hurt the U.S. and help our foreign competitors," said Martin Regalia, Chamber chief economist.  "If members of congress are interested in helping American companies improve our economy, they should revisit the U.S. tax system that drives businesses offshore in the first place." [Link to Press Release and Speech below:]

October 16, 2002, U.S. Chamber of Commerce, U.S. Chamber Urges Congress to Reject Penalties on Offshore American Businesses
http://www.uschamber.com/Press+Room/2002+Releases/October+2002/02-172.htm

October 16, 2002, Martin Regalia's speech
http://www.uschamber.com/NR/rdonlyres/2FEF0AE9-0DF5-469E-B3AB-8BF8F2046E8C/ mar_inversion.pdf

October 17, 2002, The Electronic Accountant, Chamber: Don't Penalize Offshore American Businesses
http://www.electronicaccountant.com/ElectronicAccountant/index.cfm?txtFuse=dspSh ellContent&fuseAction=DISPLAY&numContentID=13250&numTaxonomyID=179

 

11) Mitchell and de Rugy:  Forget the Swiss, Mr Bolkestein. Pick on someone your own size - the US

[Excerpt from letter to the editor]

Sir, Frits Bolkestein, the European commissioner for taxation, should pick on someone his own size. He launches a demagogic attack on Switzerland ("I cannot stand Switzerland cheating on tax", October 7), arguing that Swiss financial privacy laws are making it harder for Europe's welfare states to impose a second layer of tax on income that is saved and invested. But why does he give the US a free pass? After all, the Bush administration has already announced that it has no intention of participating in this indirect form of tax harmonisation. This is the death knell of the savings tax directive, and we say good riddance. Supporters of market-based tax policy may not agree on everything, but there is universal agreement that tax systems should have certain characteristics, including neutral treatment of income that is saved and income that is consumed. Another widely shared principle is territorial taxation, the common-sense notion of taxing only activity inside national borders. The savings tax directive, which would emasculate privacy laws to allow the extra-territorial imposition of discriminatory taxes on capital income, clearly violates these tenets of good tax policy. [Link to full article below:]

October 10 2002, Financial Times, by Daniel J. Mitchell and Veronique de Rugy, Letter to the Editor: Forget the Swiss, Mr Bolkestein. Pick on someone your own size - the US
http://www.freedomandprosperity.org/Articles/ft10-10-02/ft10-10-02.shtml

EU New Clips:

October 11, 2002, Tax-News.com, by Mike Godfrey, US Think-Tanks Criticise Bolkestein Over Savings Tax Dispute
 
http://www.tax-news.com/asp/story/story.asp?storyname=9653

October 18, 2002, Offshoreon.com, Switzerland Continues Battle with EU on Savings Tax Directive
http://www.offshoreon.com/articles/3666.asp?docid=3666

October 12, 2002, DW-World.de, by Andreas Hartmann, EU Challenges Switzerland Over Bank Secrecy
http://dw-world.de/english/0,3367,1431_A_654673_1_A,00.html

October 11, 2002, EUbusiness, Swiss and EU remain at loggerheads on bilateral deals
http://www.eubusiness.com/cgi-bin/item.cgi?id=93171&d=101&h=240&f=56&dateform at=%25o%20%25B%20%25Y

October 10, 2002, Tax-News.com, by Jason Gorringe, Departing HM Procureur Warns Guernsey Over EU And Tax
http://www.tax-news.com/asp/story/story.asp?storyname=9643

October 8, 2002, SwissInfo, EU wields sanctions threat against Swiss
http://www.swissinfo.org/sen/swissinfo.html?siteSect=105&sid=1384246

October 9, 2002, Tax-News.com, by Ulrika Lomas, Luxembourg And Germany Clash Over EU Savings Tax
http://www.tax-news.com/asp/story/story.asp?storyname=9625

October 8, 2002, Reuters, EU Sees Sanctions Vs Swiss in Tax Row Only in 2010
http://www.reuters.com/news_article.jhtml?type=worldnews&StoryID=1550838

October 8, 2002, Telegragh (London), By Selina Mills, Swiss fury as commissioner attacks 'lack of help on tax'
http://money.telegraph.co.uk/money/main.jhtml;$sessionid$WWVWZCUZNKSHZQFI QMFCFFOAVCBQYIV0?xml=/money/2002/10/08/cnswiss08.xml&sSheet=/money/2002/ 10/08/ixcity.html

October 9, 2002, Tax-News.com, by Ulrika Lomas, Switzerland Angered By Bolkestein's Comments
http://www.tax-news.com/asp/story/story.asp?storyname=9623

October 9, 2002, Bloomberg, By Marc Wolfensberger, Switzerland Won't Comply With EU Tax Demands Unless U.S. Does
http://quote.bloomberg.com/fgcgi2.cgi?T=uspolitics_news.ht&s=APaISXxUiU3dpdHpl

October 7, 2002, SwissInfo, EU turns up heat on Swiss banking secrecy
http://www.swissinfo.org/sen/Swissinfo.html?siteSect=111&sid=1381708

 

12) European Draft Constitution endorses tax harmonization: Is anyone surprised?

Update from www.no-euro.com.

European Draft Constitution endorses tax harmonization: Is anyone surprised? Excerpts below:

…the draft talks about "strengthening economic and monetary union" and a separate Convention group explicitly called this week for an end to the [national] veto on tax harmonisation. Finally, major changes to the EU's institutional structure are proposed which could undermine the veto further.

…Tax harmonisation and economic coordination. The draft talks about "strengthening economic and monetary union". While the details are not finalised, the German press this week reported on the work of the Convention on the Future of Europe's working group on economic policy. The group has made two main recommendations.

First, the group said that VAT and corporate tax must have base levels that are harmonised throughout the EU. This should no longer be allowed to be prevented by national veto so "the principle of unanimity in the area of fiscal policy should be scrapped" (Handelsblatt, 29 October).

For more information, see http://www.no-euro.com/mediacentre/archive.asp?ID=171

 

13) RSC: Gephardt's Corporate Taxes Plan "will force companies that had to choose between re-incorporating overseas and closing U.S. plants to shut down their U.S. operations"

Neil Bradley, Executive Director of the Republican Study Committee, issued the following report on House Democratic Leader Richard Gephardt multiple-point economic plan. On page 3 Mr. Bradley does a very good job explaining why the real problem behind corporate inversions is the uncompetitive U.S. tax code.

[Excerpt:]

The Democrat Plan: "…I propose that we get rid of the tax loopholes that encourage corporations to go overseas and laws that allow phony re-incorporations abroad by American based companies." – Minority Leader Dick Gephardt, October 15, 2002

Reality: The Democrat Plan will force companies that had to choose between re-incorporating overseas and closing U.S. plants to shut down their U.S. operations, thereby actually increasing unemployment.

The corporations that have moved overseas or that have re-incorporated overseas have done so because the U.S. imposes the fourth highest tax rate in the world on corporations (soon to be the second highest once Belgium and Italy implement their planned tax reduction) and because unlike many other countries, the U.S. taxes businesses not only on the income they earn in the United States, but also on the money they make in other countries. {Link to full analysis below:]

October 16, 2002, Republican Study Committee, The Democratic Economic Plan – Bad for the Economy, Bad for Workers
http://www.freedomandprosperity.org/Articles/rsc.pdf

 

14) Paul Johnson:  All of Europe Is the Sick Man Now

[Excerpt]

Americans have been angered by the hostile attitude of some Europeans to the U.S. efforts to take the war against terrorism to its countries of origin in the Middle East. They are puzzled by European irrationalism and weakness. On the economic front, they wonder too how the large Continental economies can sustain double-digit unemployment for years on end. But the causes for all this are deep-rooted and interrelated. There is no longer a "sick man of Europe." The whole of Europe is sick.

We have to remember that twice in the 20th century, Europe came close to committing suicide by wars that in retrospect seem senseless. These atrocious self-lacerations were followed by a 40-year Cold War that imprisoned much of Europe in a cage of fear and suspicion. In this process, Europe, a collection of vigorous and innovative peoples, who pushed forward the frontiers of civilization for a thousand years and created the modern world, learned to opt for a safety-first existence in which creature comforts and short-term security became the object of policy. They sought a cozy Utopia where risk and pain were eliminated.

Fifty years ago, the drive to unite Europe was seen as a daring adventure, not only burying ancient enmities but creating a new kind of enterprise society that would bring unparalleled prosperity. The project has degenerated into a defense of cradle-to-grave social-security system whose demands take priority over the market.

Under the EU's constant demands for "social protection," European societies have become a paradise for bureaucrats, trade unionists, centrist politicians and those businessmen who prefer to work under government protection. They offer little to original minds and risk-taking entrepreneurs. The fundamental assumptions of the drive to unite the continent are now half a century out of date and the EU's rigid, ultraconservative structure make it incapable of taking in new ideas or even dumping such manifest archaisms as the Common Agricultural Policy. [Link to full article below:]

October 14, 2002, The Wall Street Journal, By Paul Johnson, All of Europe Is the Sick Man Now
http://www.freedomandprosperity.org/Articles/wsj10-14-02/wsj10-14-02.shtml

 

15) WSJE:  Who Is Protected By EU Privacy Rules?

[Excerpt:]

The European Union wants you to know that your personal data is safe from prying eyes -- unless those eyes are government's.

The EU's rules on data privacy make for one of the stranger ironies of the European Union's quest to make the world a better place. It has some of the world's strictest regulations on the storage, use and transfer of personal data--your name, your addresses, both physical and virtual. In a high-profile test of those rules, they are currently being applied to Microsoft, whose "Passport" sign-in system is under investigation for failing to adhere to the EU's rules on the collection, use and "processing" of such data.

At the same time, however, the EU is in the process of implementing some of the world's most far-reaching rules to ensure that law-enforcement agencies can access records about you if you come under investigation. [Link to full article below:]

October 7, 2002, The Wall Street Journal (Europe), By Brian M. Carney, Who Is Protected By EU Privacy Rules?
http://www.freedomandprosperity.org/Articles/wsje10-07-02/wsje10-07-02.shtml

 

16) Treasury's Pam Olson Warns Lawmakers To Tread Carefully Over Corporate Tax Changes

[Excerpt:]

Speaking to a Senate hearing last week, Pam Olson warned legislators not to act too hastily against companies which relocate offshore for tax purposes, arguing that the flaws in the US tax code which drive them to expatriate need to be addressed first.

Ms Olson, the newly appointed Assistant Treasury Secretary for Tax Policy, cautioned that closing 'loopholes' in the US corporate tax regime too quickly 'may inadvertently result in a tax code favouring the acquisition of US operations by foreign corporations'.

She told the Senate hearing: 'We must address the tax disadvantages imposed by our international tax rules on US-based companies with foreign operations,' explaining that:

'Relative to the tax systems of our major trading partners, the US tax rules can impose significantly heavier burdens on the foreign operations of domestically-based companies. Our objective must be to ensure that the US tax system maintains the competitiveness of US businesses in the global market place.' Link to full article below:]

October 21, 2002, Tax-News.com, by Mike Godfrey, Pam Olson Warns US Lawmakers To Tread Carefully Over Corporate Tax Changes
http://www.tax-news.com/asp/story/story.asp?storyname=9734

 

17) Prodi calls for "single economic government"

[Excerpt from www.no-euro.com newsletter:  New 'no' bulletin - 25 October, link http://www.no-euro.co.uk/general/bulletin163.pdf]

Prodi calls for "single economic government"

Romano Prodi, the President of the European Commission, called for "a single economic government for all countries who share the same money" (Wall Street Journal Europe, 21 October), with more power to the Commission to enforce the Stability Pact.  This call was echoed by members of the Convention on the Future of Europe, whose economic committee called for the introduction of qualified majority voting on tax harmonisation and called for strengthened economic co-ordination between the Member States.

 

18) Swiss Anti-Money Laundering Laws Effective

Four years after new laws allowed them to clamp down on attempts to launder the proceeds of crime through secretive Swiss banks, Swiss officials are proclaiming that they are among the best in the world at tackling money laundering.

November 1, 2002, BDFM Publishers, Secretive Swiss law mops out fraud
http://www.bday.co.za/bday/content/direct/1,3523,1210564-6078-0,00.html

 

19) Mitchell to Speak at Offshore Institute Conference in Miami

Dan Mitchell of the Heritage Foundation will be speaking at the November 18-19 Offshore Institute conference in Miami. His speech, "The Offshore Industry Response to Global NGO, Regional and Domestic Pressure on the International Financial Service Sector," will take place at 11:45 a.m. on Tuesday, November 19. For more information and/or to register, visit www.offshoreinstitute.com/conf/conference_2002.pdf

 

20) CF&P Clips

October 31, 2002, Tax-News.com, by Amanda Banks, International Meeting On OECD Measures Takes Place In Cayman
http://www.tax-news.com/asp/story/story.asp?storyname=9848

October 31, 2002, Washington Post, By Jonathan Weisman, Inching Away From Income Tax: 'Value-Added' Levy Would Turn System Upside Down
http://www.washingtonpost.com/wp-dyn/articles/A43402-2002Oct30.html

October 31, 2002, Tax-News.com, by Mike Godfrey, Rossotti Again Draws Attention To Dwindling IRS Resources
http://www.tax-news.com/asp/story/story.asp?storyname=9849

October 31, 2002, Tax-News.com, FATF Told: 'Physician, Heal Thyself'
http://www.tax-news.com/asp/story/story.asp?storyname=9854

October 30, 2002, The Washington Times, by Daniel J. Mitchell, Two cheers for bankruptcy
http://www.washtimes.com/commentary/20021030-96567328.htm

October 2002, CRM Magazine, PATRIOT Act Takes Aim at the Financial Sector: Knowing your customer has become more than a business imperative.
http://www.destinationcrm.com/articles/default.asp?ArticleID=2583

October 30, 2002, The Washington Times, By Bruce Bartlett, Be wary of the VAT tax option
http://www.washtimes.com/commentary/20021030-88080500.htm

October 29, 2002, Competitive Enterprise Institute, by Hugo Gurdon Not-So-Super Superstate: A Bad Thing Gets Bigger
http://cei.org/gencon/019,03270.cfm

October 28, 2002, The Washington Times, by Bruce Bartlett, Political washout on class warfare
http://www.washtimes.com/commentary/20021028-25551032.htm

October 26, 2002, Washington Post, By Jonathan Weisman, Treasury To Pitch Tax-Code Changes: Package Designed To Simplify System
http://www.washingtonpost.com/wp-dyn/articles/A19465-2002Oct25.html

October 24, 2002, The Economist, Restoring Europe's smile: These are not the best of times for the European Union. Here's why
http://www.economist.com/opinion/displayStory.cfm?story_id=1403636

October 24, 2002, The Washington Times, by Richard W. Rahn, Prime the pump for prosperity
http://www.washtimes.com/commentary/20021024-69533855.htm

October 2002, Knowledge@Wharton, EU Expansion Moves Closer to Reality
http://knowledge.wharton.upenn.edu/whatshot.cfm

October 23, 2002, Tax-News.com, by Ulrika Lomas, Hasler Confirms Liechtenstein's Position On EU Savings Tax
http://www.tax-news.com/asp/story/story.asp?storyname=9765

October 22, 2002, Swissinfo, Anti-terrorist official warns against complacency
http://www.swissinfo.org/sen/swissinfo.html?siteSect=105&sid=1410440

October 18, 2002, Offshoreon.com, By W. William A. Woods, Why Legitimate Companies Use Offshore Financial Centres
http://www.offshoreon.com/articles/3655.asp?docid=3655

October 22, 2002, Washington Times, by Carlos Boyadjian, Family Aid Boosts Latin Economies
http://www.washingtontimes.com/world/20021022-9511112.htm

October 21, 2002, Tax-News.com, by Ulrika Lomas, EU Budget Commissioner Mulls New Tax On EU Citizens
http://www.tax-news.com/asp/story/story.asp?storyname=9735

October 22, 2002, Sports Illustrated, Becker's trial spotlights tax exiles
http://sportsillustrated.cnn.com/tennis/news/2002/10/21/becker_trial/

October 21, 2002, The Guardian, Cosy tax deals: Inland Revenue needs cross-examining
http://politics.guardian.co.uk/economics/comment/0,11268,816010,00.html

October 21, 2002, National Center for Policy Analysis, By Bruce Bartlett, Why Profits Are Trending Down
http://www.ncpa.org/edo/bb/2002/bb102102.html

October 17, 2002, NewsMax.com, Armey and ACLU Agree: Ashcroft's Justice 'out of Control'
http://www.offshoreon.com/articles/3666.asp?docid=3666

October 17, 2002; Washington Post, By Douglas Farah, Report Decries Saudi Laxity: U.S. Must Act to Dry Up Al Qaeda Funds, Policy Group Says
http://www.washingtonpost.com/wp-dyn/articles/A37535-2002Oct16.html

October 16, 2002, CBS.MarketWatch.com, By Rex Nutting, O'Neill to propose far-reaching tax reform: Revenue, not behavior modification, should be the goal
http://custom.marketwatch.com/custom/iwon-com/news-story.asp?guid={FB8BD0DF-9 478-420B-AA9B-163AECCE47F3

October 16, 2002, BBC News, by Jeremy Scott-Joynt, Offshore rules run into the sand
http://news.bbc.co.uk/1/hi/business/2333035.stm

October 15, 2002, Financial Planning Interactive, by Steve Garmhausen, "Patriot"-ism Could be Expensive, Expert Says: The USA Patriot Act could cost small planning firms up to $100,000 in its first year.
http://www.financial-planning.com/pubs/fpi/20021015100.html

October 15, 2002, Yahoo News, IRS Weighs Using Debt Collectors to Get Back Taxes

http://story.news.yahoo.com/news?tmpl=story2&cid=808&u=/dowjones/20021015/bs_ dowjones/200210150027000019&printer=1

October 12, 2002, Pacific Business News, Niue, Marshalls leave money laundering hall of shame
http://pacific.bizjournals.com/pacific/stories/2002/10/07/daily93.html

October 10, 2002, Tax-News.com, by Mike Godfrey, US Treasury Deputy Secretary Speaks On International Tax Reform
http://www.tax-news.com/asp/story/story.asp?storyname=9636

October 10, 2002, Rational Review, by R. Lee Wrights, Losing the War on Tax Evasion
http://www.rationalreview.com/archive/rleewrights/rleewrights100102.html

October 09, 2002, Fox News, By Liza Porteus, Privacy Comes Under the Technology Gun
http://www.foxnews.com/story/0,2933,65148,00.html

October 4, 2002, Island Sun (BVI), Chief Minister supports major plan to eradicate Corporate Crime
http://www.islandsun.com/2002-October/04102002/local2-v9i07.html

September 30, 2002, Ron Holland's speech at the Third Annual Global Investment Seminar in Vienna, Austria, The Washington Empire's War Now Threatens Your Liberty & Investment Portfolio
http://www.ronholland.com/Viennaspeech.htm

 

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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