Senator Rubio continues to impress with his Reagan-like efforts to restrain government and promote growth. His latest initiative is legislation to curtail rogue IRS bureaucrats who are seeking to use regulatory edicts to overturn 90 years of law.
Here are excerpts from a report in The Hill.
Sen. Marco Rubio (R-Fla.) and other Senate Republicans on Tuesday introduced a bill aimed at blocking pending regulations that would require banks to report to the Internal Revenue Service all interest deposits paid to nonresident aliens (NRA). Rubio, along with Texas GOP Sens. John Cornyn and Kay Bailey Hutchison, introduced S. 1506 because they believe the pending regulations have the potential to drive billions of dollars of deposits away from U.S. banks. A summary of the bill provided by Rubio’s office argues that this could leave U.S. banks undercapitalized and less able to lend in the U.S. “Simply put, this rule will cause billions of dollars in important NRA deposits to be withdrawn from American banks and invested in countries with less onerous reporting requirements,” the lawmakers state in the bill summary. “A capital flight of any magnitude will hurt the lending capacity of community banks and damage local and state economies — not to mention endanger those who invest in U.S. banks due to corruption, inflation, and violence in their home countries, particularly in nations like Mexico and Venezuela.” The summary also notes that Congress has explicitly exempted NRA deposits from taxation… Rubio’s bill is a companion bill to H.R. 2568, which was introduced by Reps. Bill Posey (R-Fla.), Francisco Canseco (R-Texas), Mario Diaz-Balart (R-Fla.), Ruben Hinojosa (D-Texas) and Gregory Meeks (D-NY).
This may sound like a technical issue, but this video explains why it has huge implications.
[…] a big fan of Marco Rubio. The Florida Senator has been very good on some big issues and on some small issues. And he’s willing to fight important philosophical […]
[…] Not surprisingly, this rogue behavior by the IRS already has generated considerable opposition. Senator Rubio has been a leader on the issue, being the first to condemn the proposed regulation. […]
Another reason to adopt the FairTax: The IRS would be abolished; the 16th amendment would be deleted. No more capital gains tax would attract the world’s deposits to the U. S.
[…] previous posts, I explained why this regulation represents bad tax policy and undermines the rule of law. I also have explained that it will hurt the American economy and […]
[…] previous posts, I explained why this regulation represents bad tax policy and undermines the rule of law. I also have explained that it will hurt the American economy and […]
[…] written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned that […]
[…] written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned that […]
[…] biggovernment on Jan.17, 2012, under BigGovernment I’ve written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned […]
[…] I’ve written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned […]
[…] written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned […]
[…] written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned […]
[…] Not surprisingly, this rogue behavior by the IRS already has generated considerable opposition. Senator Rubio has been a leader on the issue, being the first to condemn the proposed regulation. […]
[…] Not surprisingly, this rogue behavior by the IRS already has generated considerable opposition. Senator Rubio has been a leader on the issue, being the first to condemn the proposed regulation. […]
[…] Not surprisingly, this rogue behavior by the IRS already has generated considerable opposition. Senator Rubio has been a leader on the issue, being the first to condemn the proposed regulation. […]
That’s great and all, but I would like to have heard a serious moral argument as well. I want to hear him remind us that government has no business involving itself in the peaceful transactions of its citizens. I like Rubio, and he’s the best of a bad lot, but I am unlikely to vote for him again since he is now the incumbent. We shall see how long his good judgement can last against the siren call of vote buying.
[…] Continued аt thіѕ time: Senator Rubio vs. Rascal IRS Bureaucrats « Global Liberty […]
Daniel, you should give serious consideration to becoming a Hollywood screen writer of melodramas; e.g. a rich Mexican’s children will be kidnapped and murdered if the the unfeeling IRS informed the Mexican authorities of his US bank account. Ha Ha!
You can bet that the Mexican “ricachones” (that means “filthy rich”) got that way through illegal or underhanded dealing, corruption and avoiding paying Mexican taxes. And the US Congress abets this foreign corruption by not taxing or reporting US bank interest income on NR accounts. And the way Congress spends, we can sure use the extra taxes.
If these rich folks take their money to Switzerland, the Swiss will withhold 35% of the interest that they receive in Swiss bank deposits and the Swiss will also now report that income to the home governments. What other nation’s banking system has the capacity to absorb that much foreign hot money? And say that the ricachones put the money in Hong Kong banks. The Hong Kong banks would just redeposit it in either US treasuries or US banks or private sector US investments.
The big banks that take these foreign deposits are not required to invest the funds in the US. The banks can loan those funds to foreign companies or governments or to US companies, which build factories and such in foreign countries. Your whole argument doesn’t hold water, Daniel
Any congressional opposition to governmental incrementalism is welcome. Keep at it.