Letter: Senators Warner and Allen and Representative Moran on Savings Tax Directive

September 9, 2002

Senators Warner and Allen and Representative Moran

September 9, 2002

The Honorable John William Warner

United States Senate

225 Russell Senate Office Building

Washington, DC 20510-4601

The Honorable George F. Allen

United States Senate

204 Russell Senate Office Building

Washington, DC 20510-4604

The Honorable James P. Moran

U.S House of Representatives

2239 Rayburn House Office Building

Washington, DC 20515-4608

Dear Senators Warner and Allen and Representative Moran:

The so-called “Savings Tax Directive” being pushed by the European Union and by career civil servants at Treasury and IRS is a bad idea. It would undermine financial privacy by requiring banks and other financial institutions to spy on depositors and to turn in European nationals who make investments in the United States. It threatens national sovereignty by eliminating America’s exclusive right to make the tax laws that will apply within her borders.

Perhaps worst of all, the Savings Tax Directive would undermine America’s economic strength and damage our competitive position. Europeans invest in America because it is the best place in the world to invest, and because they are fed up with high levels of taxation at home. Now bloated European governments wants to deputize American financial institutions to be their tax collectors in the New World. This is just the first step on the road to tax harmonization.

Say no to the European welfare states and no to the Savings Tax Directive. Stand up for American sovereignty, privacy, and competitiveness.

Sincerely,

James Landrith