Florida Senate - 2011                                    SM 1344
       By Senator Flores
       38-01477B-11                                          20111344__
    1                           Senate Memorial                         
    2         A memorial to the Congress of the United States,
    3         urging Congress to direct the Department of the
    4         Treasury to withdraw a proposed rule on deposits made
    5         by nonresident aliens and to examine the proposed rule
    6         for negative effects.
    8         WHEREAS, Florida is known as the “Gateway to the Americas”
    9  and, as such, has promoted international trade and finance, and
   10         WHEREAS, the United States has had longstanding policies
   11  encouraging nonresident aliens to deposit their funds into
   12  financial institutions in the United States so that these funds
   13  may be used to foster growth, encourage economic development,
   14  and create jobs in Florida and the United States, and
   15         WHEREAS, federal law does not permit the taxation of
   16  nonresident alien deposit accounts, and
   17         WHEREAS, the United States Commerce Department has stated
   18  that foreigners have deposited nearly $3 trillion in banks and
   19  with securities brokers in the United States, and
   20         WHEREAS, this policy has lead to the deposit of tens of
   21  billions of dollars by nonresident aliens in banks in this
   22  state, and
   23         WHEREAS, the Treasury Department has issued a proposed
   24  Internal Revenue Service regulation, REG-146097-09, which will
   25  require financial institutions in the United States and in this
   26  state to report interest earned on deposits made by nonresident
   27  aliens, so that this information can be reported to the
   28  nonresident alien’s home country, and
   29         WHEREAS, many nonresident alien accounts located in banks
   30  in this state were established by Latin Americans who do not
   31  trust the privacy of the financial institutions in their home
   32  countries, are afraid of kidnappings and extortion when funds
   33  are domestically deposited, and are so concerned with the
   34  viability of the economies of their home countries that they
   35  have moved their money to the safety and soundness of this
   36  nation’s financial system, and
   37         WHEREAS, adoption of the rule would place financial
   38  institutions in the United States and in Florida at a
   39  competitive disadvantage relative to the banks of foreign
   40  countries and will result in significant withdrawals of foreign
   41  deposits from our financial institutions, and
   42         WHEREAS, the withdrawal of these nonresident alien deposits
   43  from Florida financial institutions will drive job-creating
   44  capital out of Florida and cause a further and deepening banking
   45  and economic crisis in Florida and the United States, NOW,
   48  Be It Resolved by the Legislature of the State of Florida:
   50         That the Congress of the United States is urged to direct
   51  the Department of the Treasury to withdraw proposed Internal
   52  Revenue Service regulation REG-146097-09.
   53         BE IT FURTHER RESOLVED that the Congress of the United
   54  States is urged to hold hearings to examine the negative effects
   55  of the proposed rule on the economy of the United States and
   56  Florida and the cost of the proposed rule to financial
   57  institutions.
   58         BE IT FURTHER RESOLVED that copies of this memorial be
   59  dispatched to the President of the United States, to the
   60  President of the United States Senate, to the Speaker of the
   61  United States House of Representatives, and to each member of
   62  the Florida delegation to the United States Congress.