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Bill reduces deficit by $179 million

U.S. Representative Virginia Foxx (NC-05) today voted to require the U.N. to return $179 million that the Unites States overpaid to the U.N in recent years.  The bill, H.R. 519, is part of the House’s YouCut program, which allows taxpayers to choose which budget cuts they would like the House to enact. 

“This is a common sense bill to retrieve American taxpayer dollars from the U.N.,” Foxx said.  “The U.N owes America this money and we should get it back as soon as possible.”

U.N. holds $179 million that the U.S. overpaid into the U.N.’s Tax Equalization Fund. The U.N. continues to hold the American money because the Administration has not instructed it to return the money.  H.R. 519 instructs the U.N. to return this money to the U.S.  If the U.N. does not return the money, the legislation withholds the same amount from the U.S.’s contributions to the U.N.’s budget.

“American taxpayers already shoulder too much of the U.N.’s bloated budget,” Foxx said.  “At a bare minimum we should get this money back from the U.N. before it vanishes into thin air like much U.N. funding does.”

House Republicans highlighted this bill in their YouCut program this week.  The web-based YouCut initiative allows concerned Americans to cast their vote for various budget-cutting options and this week H.R. 519 was the top vote getter.  For more information on the YouCut program and this week’s proposed budget cuts please visit http://www.majorityleader.gov/YouCut/.

About the Tax Equalization Fund (TEF): In 2008 – 2009, the U.S. overpaid the TEF by $52.2 million.  Overpaid amounts to this fund are not automatically returned to the U.S.  Instead, overpaid funds accumulate at the U.N.  According to a July 29, 2010 U.N. financial report, as of December 31, 2009, the U.S. has overpaid the TEF by $179,010,326.  The TEF is a fund that reimburses certain U.N. staff, who are subject to U.S. income taxes, for those U.S. income taxes.