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
This is by Richard W Rahn, of the Cato Institute.
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 risk if other countries start to retaliate, which is very likely, given the increased anger over U.S. actions.
The administration has the unmitigated gall to insult others by assuring foreign governments that all the sensitive financial information collected will be kept confidential. If the administration continues on this reckless and irresponsible course, the next president of the United States may well be forced to make an “apology” tour to most of the world’s countries for wrecking the world economy
I suppose it would be rather droll to watch the Light-bringer take to Air Force One to go on a tour grovelling to various nations for spying on them as well as putting the corrupt IRS in charge of the globe’s economy. But it isn’t going to happen under this administration, given the utter shamelessness of those involved in it. And yet those of us outside the US cannot afford to strike too many poses, since I have no doubt that given half a chance, countries in the EU, and the likes of Russia and China, would love to try to enforce extra-territorial legislation such as the US tax code if they could do so. America is not unique in this disastrous course; what is happening is that, given its still-large economic muscle, the US can do this. Most investment firms, for instance, will have some exposure to the US market to some degree and it is very hard to ignore the country. In some ways, though, the US drive, via legislation as described in the article, is a reflection in some ways of US weakness. The country is out of money, and is doing anything it can short of military invasion to get it (it could be argued that that country’s actions against Switzerland are bordering on force).
A small country behaving like this would be told, in so many words, to fuck off.