[Congressional Record (Bound Edition), Volume 155 (2009), Part 9]
[House]
[Pages 11207-11208]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             AIG/PANAMA FTA

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Maine (Mr. Michaud) is recognized for 5 minutes.
  Mr. MICHAUD. Mr. Speaker, I am here this afternoon to strongly oppose 
the Bush-negotiated Panama Free Trade Agreement. We should not even be 
considering this agreement until Panama fixes its outrageous banking 
secrecy, its offshore tax haven, and financial service deregulation 
policies.
  Just when we thought we heard almost everything that there is to know 
about AIG's bailout and bonuses, many of you may not know AIG is suing 
United States taxpayers, claiming it overpaid U.S. taxes on activities 
in Panama.
  Panama is a country which applies low to no regulations and taxes on 
firms registered there. AIG wants to get back those taxes it dodged 
with its Panamanian front.
  Panama hides its tax liabilities and transactions behind banking 
secrecy rules. The United States and other firms can create unregulated 
subsidiaries with ease in Panama. According to the State Department, 
Panama has over 350,000 foreign-registered companies. AIG is very keen 
on tax havens like Panama.
  The New York Times just ran an article about how AIG is currently 
suing the United States Government for over $306 million in back taxes 
it claims it does not owe because of the Panamanian company entitled 
Starr International Company, otherwise known as SICO.
  SICO is AIG's largest shareholder. It is also the manager of a 
compensation fund for AIG employees who are paid in AIG shares. SICO's 
chairman is former AIG Chairman Hank Greenberg. The same company that 
got the government bailout money and used taxpayer dollars for 
outrageous bonuses is now demanding twice the amount of bonuses in paid 
back taxes.
  If you aren't already angry about the greed of AIG executives, the 
fact that they are using Panama's tax haven status as a way to sue the 
American taxpayers for back taxes is completely outrageous. The Bush-
negotiated Panama Free Trade Agreement would make matters worse. It 
promotes the offshoring of investment by providing special treatment 
for firms who are in Panama.
  At a time of severe economic downturn and when the government is 
asking the United States taxpayers to foot the bill for Wall Street's 
mess, the last thing we need to do is pass a trade deal negotiated by 
the Bush administration that promotes offshoring, tax dodging, and 
privileges for foreign investors.
  This is simply outrageous. As elected officials of the people here in 
the United States, we ought to have transparency in what is going on; 
and that transparency has not been there, whether it is the bailout 
legislation or whether it is looking at the Panama trade negotiated 
under the Bush administration which will be a tax haven

[[Page 11208]]

for companies who are registered in Panama.
  I urge my colleagues to vote against any Panama trade deal that has 
been negotiated by the previous administration. It's wrong. It's 
outrageous, and it is not the right thing to do.

                          ____________________