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Looking for Lucre in All the Wrong Places

October 29, 2013 in Economics

By Richard W. Rahn

Richard W. Rahn

The Obama administration has performed the unique trick of alienating the majority of our most important allies, while at the same time causing America to be viewed as a patsy by its enemies.

The situation is bound to get worse now that the administration has taken the position that most financial institutions outside the United States are conspiring to help Americans and others avoid U.S. taxes and, thus, is attempting to require all of these foreign financial institutions to report to — and, in effect, become agents of — the Internal Revenue Service. A global revolt is brewing against the United States for being an international financial bully. The consequences of this revolt are likely to be extremely damaging and long-lasting to the nation.

If the administration persists with the Foreign Account Tax Compliance Act and the prosecution of foreign financial executives, it is in danger of having them pull out trillions of dollars of foreign investment.”

The administration has managed to cause serious damage to relations with our major allies over spying on them, acting as a financial imperialist and being perceived as an unreliable partner. The British, our closest ally, refused to go along with President Obama’s intended attack on Syria. The French agreed to support us, but then Mr. Obama left the French hanging when he suddenly reversed course. The Israelis, the Turks, the Egyptians, the Saudis and others no longer trust us because of our policy reversals. The administration has even managed to offend the mild-mannered Canadians owing of its failure to approve the Keystone XL pipeline and the bullying of their financial institutions.

The United States has been threatening to criminally indict nonresident foreign bank executives for not complying with U.S. tax law, even in cases when the banks were not operating in this country or violating their own nation’s tax laws. This is causing great resentment, as one would expect. Each country has the right to its own tax and financial-privacy laws, whether the United States agrees or not. Europe and most other countries prohibit capital punishment.

What if other nations started indicting and imprisoning our federal or state government officials, including judges when they traveled outside of the country, for carrying out the death penalty? The point is, if the United States tries to enforce its laws on non-Americans working and living outside of the U.S. for acts that are not criminal in their home countries, it will put all Americans at …read more

Source: OP-EDS

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