While author Richard Rahn is making this a partisan issue by placing the blame squarely on Democrat shoulders and calling it an effort in “wealth redistribution,” he does write a refreshingly raw piece that does a good job of expressing the anger and frustration that many of us feel.
Sen. Carl Levin, Michigan Democrat, and the other economic-know-nothings who proposed these measures claim – without any basis in fact – that the United States is losing $100 billion annually because of foreign account tax avoidance or evasion. Private foreign investment in the U.S. is about $14 trillion. So $100 billion is less than 1 percent of the private foreign investment, yet the mental midgets in Congress and the administration are willing to risk trillions of dollars in job-creating foreign investment in exchange for a phony $100 billion. Well over 10 million American jobs are at risk because of this foolishness.
It gets worse. The Treasury and IRS have yet to do a cost-benefit study of FATCA, but final regulations are being developed. In the private sector, executives who so failed at their fiduciary responsibilities would be fired, perhaps fined or even sent to jail. But members of Congress and the executive branch are most unlikely to pay any penalty for risking perhaps 20 to 40 jobs for each job they might, theoretically, save.