HM 1047

1	House Memorial
2	A memorial urging the United States Department of the
3	Treasury to withdraw a proposed rule on nonresident alien
4	accounts and Congress to hold certain hearings on the
5	proposed rule.
6
7	WHEREAS, Florida is the gateway to the Americas and, as
8	such, has promoted international trade and finance, and
9	WHEREAS, the United States has had a long policy to
10	encourage nonresident aliens to deposit their funds into
11	financial institutions in the United States so that these funds
12	can be used to foster growth, encourage economic development,
13	and create jobs in Florida and the United States, and,
14	WHEREAS, the federal law does not permit the taxation of
15	the deposit account of a nonresident alien, and
16	WHEREAS, the United States Commerce Department has stated
17	that foreigners have deposited nearly $3 trillion in United
18	States banks and with securities brokers, and
19	WHEREAS, this policy has led to the influx of tens of
20	billions of nonresident alien dollars being deposited in Florida
21	banks, and
22	WHEREAS, the Treasury Department has issued proposed
23	Internal Revenue Service regulation REG-146097-09 that will
24	require United States and Florida financial institutions to
25	report interest earned on the nonresident alien deposits so that
26	this information can be reported to the nonresident alien's home
27	country, and
28	WHEREAS, many nonresident alien accounts were established
29	in Florida by individuals from Latin America because many
30	nonresident aliens do not trust the privacy of the financial
31	institutions in their home countries, fear kidnappings and
32	extortion when such financial information is revealed, and are
33	concerned about the viability of their home country's economy
34	and thus have transferred their money to the safety and
35	soundness of the United States' financial system, and
36	WHEREAS, the adoption of the rule will place United States'
37	and Florida's financial institutions at a competitive
38	disadvantage relative to the banks of foreign countries and will
39	result in significant withdrawals of foreign deposits from our
40	financial institutions, and
41	WHEREAS, the withdrawal of these nonresident alien deposits
42	from Florida's financial institutions will drive job-creating
43	capital out of Florida and cause a further, deepening banking
44	and economic crisis in Florida and the United States, NOW,
45	THEREFORE,
46
47	Be It Resolved by the Legislature of the State of Florida:
48
49	That the Legislature requests that the United States
50	Treasury Department withdraw proposed Internal Revenue Service
51	regulation REG-146097-09.
52	BE IT FURTHER RESOLVED that the United States Congress hold
53	hearings to examine the negative effects of the proposed rule on
54	the economies of the United States and Florida and the expense
55	to financial institutions.
56	BE IT FURTHER RESOLVED that copies of this memorial be
57	dispatched to the President of the United States, to the
58	President of the Senate, to the Speaker of the United States
59	House of Representatives, to each member of the Florida
60	delegation to the United States Congress, and to the United
61	States Secretary of the Treasury.

CODING: Words stricken are deletions; words underlined are additions.