GOP seeks return of millions from overpayments into UN tax fund
Sunday, February 6, 2011 at 12:16PM Besides our federal bureaucracy, is there an organization anywhere in the world that capitalizes on US individual wealth more than the United Nations?
Now Republicans in the US House of Representatives have filed a resolution “To secure the return to the United States the $179 million overpaid into the United Nations Tax Equalization Fund as of December 31, 2009, and for other purposes.” The resolution apparently doesn’t have a number yet—notice of this was included in an email from Rep. Eric Cantor’s (R-Va.) office. Cantor is majority leader.
Most American taxpayers are not aware the UN levies de facto taxes on our citizens—the Tax Equalization Fund isn’t an income tax. Neil Stevens at Red State offered the best explanation of the Tax Equalization Fund system:
“* The UN skims off of every UN salary a private withholding tax, called a staff assessment. Those staff assessments go into the Tax Equalization Fund. In 2009 every country got about 10% of its dues knocked off by the TEF, except the US because our share was used to pay the taxes of every UN staffer that owed US income tax on his UN salary. Essentially the UN taxes its employees to subsidize the UN dues of Japan, Germany, and every other country not named the United States of America.”
The Heritage Foundation analyzed a report on the TEFS in a Web Memo. Heritage said, “The report went on to explain that the TEF is overly complex and ‘produces no net gain for the United States. Any tax collected from U.S. nationals is offset by payments made to the IOs under tax reimbursement agreements or through tax equalization funds. … Additionally, there are administrative costs involved in monitoring and reviewing the reimbursement claims and in reimbursing the IOs. There is also the opportunity for fraud and abuse through devices such as amended tax returns.’”
Under the previous UN secretary-general, a scandal erupted over Oil for Food funds. Culprits in that diversion of funds made millions. None were punished.
Congress should demand the return of the Tax Equalization Fund monies and restructure a method for ensuring large amounts of US money do not sit idle in a UN bank account.
Congress should also insist on the return of any interest earned on those funds and perhaps an administrative fee should be considered as well.
The TEFS is only one UN avenue diverting US wealth abroad. Many conservatives believe the US economic relationship with the UN should be reviewed and reformed.
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(Commentary by Kay B. Day/Feb. 6, 2011)