OMG made a fabulous find in Miami Herald about the “destructive” impact of requiring US banks to report on assets held by citizens of other countries.
Well, isn’t this interesting?!? Surprise, surprise. Congressmen are crying about the “disastrous consequences” of such a move.
The Congressmen write:
For more than 90 years, Congress has encouraged foreigners to invest their money in U.S. banks by exempting these deposits from taxes and reporting. This policy has led to hundreds of billions of foreign deposits in U.S. banks, particularly in Florida, creating good-paying jobs and credit for communities and small businesses. In fact, each $1 deposit results in $7 to $9 in sorely-needed economic activity.
What?!? For 90 years, Congress has encouraged investment in US banks by exempting those deposits from taxes and reporting!. Does that sound like a tax haven for tax cheats and tax evaders to anyone else?!? Does that sound like the US economy benefits from being a tax haven?!?
What will happen to IRS highly touted “reciprocity” if US banks don’t have to report on foreign investments? We need to stay tuned!