Video: IRS pressing for rule that would see capital flight from US

(By Ed Morrissey, Hot Air) - Cato’s Dan Mitchell shines a light on a new effort at the IRS to increase revenue by taxing interest payments on foreign capital deposited and invested in the US. Congress passed a specific rule blocking that kind of taxation, but short-term thinking in the administration and at the IRS has the agency looking for any revenue it can find. The problem, as Mitchell points out for the Center for Freedom and Prosperity, is that the long-term effects would be disastrous for the American economy and could create a collapse in an industry we just finished bailing out: