Why Are the QI Regulations Not Only Harmful to U.S. Interests but Helping the Mafia?
U.S. persons determined to avoid U.S. taxes, will always find lawful ways, e.g. by shifting their investments out of U.S. assets. They don’t need the anonymity offered by the QI Regulations. Only the Mafia does – for reasons of its own. Mafia treasurers would appreciate the guaranteed anonymity obtained through a 31% protection payment to the IRS. The QI regulations might thus not only fail their advertised purpose, but would likely cause significant damage to U.S. interests, e.g. by being: 1. Bad for the market The regulations would hit all persons investing in the U.S., non-U.S. firms included. Failure to qualify as QI would mean higher withholding taxes, yet qualification would force the institutions and investors to endure considerable red tape and costly regulatory burdens. The solution: to invest someplace other than America. Professionals have thus warned that the new regulations could trigger an exodus from U.S. securities. The QI regulations would create a discriminatory syste
