Florida delegation implores Obama: Hands off foreign deposits in U.S. banks
Led by U.S. Rep. Bill Posey, the entire Florida delegation has sent a letter to President Obama opposing a proposed IRS rule that would affect foreign deposits in U.S. banks.
The U.S. has long allowed foreigners to deposit money, which earns interest tax free. "America gets the benefit of having that capital put to work in the U.S, while the depositors get a safe confidential investment," the lawmakers argue. "The IRS has proposed changing the rules so that this interest will now be reported to the country of origin, leading many to remove their money from the U.S. to another tax free confidential country."
“This rule has the potential to be very damaging to our already struggling economy,” Posey said. “The current confidentiality practice is a major incentive for wealthy foreigners to invest their money here in the United States, making capital more available for loans to businesses for expansion and job creation.”
The letter states: “Many nonresident alien depositors are from countries with unstable governments or political environments where personal security is a major concern,” said Members of the Florida Delegation in their letter to the Administration. “They are concerned that their personal bank account information could be leaked by unauthorized persons in their home country governments to criminal or terrorists groups upon receipt