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Dear FreedomWorks member,
As one of our million-plus FreedomWorks members nationwide, I urge you to contact your representative and ask him or her to cosponsor S. 1506, a bill to prevent the Secretary of Treasury from expanding the United States bank reporting requirements with respect to interests on deposits paid to nonresident aliens. Introduced by Marco Rubio (R-Fla.), the bill would prevent the proposed IRS regulation that would force U.S. banks to report deposit interest paid to nonresident aliens. Should the regulations be finalized, it would drive capital of the United States and put foreign tax law above domestic tax law.
Congress has exempted accounts owned by foreigners who don’t live in the United States from taxation. This is a good policy that has helped attract this mobile capital to the American economy. Many nonresident aliens have bank accounts in the United States to avoid taxes on deposit interests. Since the U.S. does not tax deposit interests, there is no reason for the IRS to collect information on the deposit interest paid to anyone.
The IRS wants to impose a burdensome regulation on the banking sector that has nothing to do with enforcing U.S. tax laws. The purpose of the proposed burdensome regulations is to help foreign government collect their own taxes abroad. The IRS should not place the interests of foreign tax collectors before the U.S. economy. Imposing reporting requirements on banks would drive foreign investments out of the economy and undermine the rules set in place by our elected representatives in Congress.
I urge you to contact your representative and ask him or her to cosponsor S. 1506, a bill to prevent the Secretary of Treasury from expanding the United States bank reporting requirements with respect to interests on deposits paid to nonresident aliens today.
President and CEO
[Click here to see a PDF version of this letter.]