Are you confident the bill will become law?

"I am confident to the extent that if the bill came out of committee and got to the full House of Representatives, it would garner at least 300 votes, maybe more. That's how powerful this issue has become."

How would you respond to those who accuse you of unfairly going after jurisdictions like Bermuda?

"I have never approached this in terms of antipathy, rather of national purpose.

"Those that desire an American address ought to keep themselves here in America. Decision-making still takes place in America. Only the address changes, which means its tax avoidance."

The war on terrorism meant $48 billion was being spent on defence and $38 billion on homeland security, which begged the question of who will pay ...

"It seems that that shift is going to the average tax-payers."

Does a US company having a Bermuda address harm the US economy and US jobs?

"Yes it does. It strikes me that even Tyco, for all their talk, have little presence left in the US.

"They have sought out protective havens for the purpose not just of tax avoidance, but it seems to me that (they are) hiring inexpensive labour in other parts of world to be profitable, but they want to make corporate decisions here in America."

But surely that was the nature of globalisation?

"America remains the world's most desirable address and I want to keep it that way. It seems globalisation is a reality, but nothing comes close to what the American economy generates every day."

Should America be looking at reforming its own tax system as some conservative critics and media organisations such as the Wall Street Journal have said, rather than attacking the companies who move out?

"I don't remember any Republican elected official defending these decisions to move. I haven't found one that has agreed with the decisions to move. In 1994 when the Republicans took over control of the House, they promised fundamental tax restructuring and reforms. They were going to 'pull the tax code up by the roots' and 'drive a stake through the heart of the tax code'.

"Not only are we no closer to changing the tax structure, that was empty rhetoric. Why should I accept their argument now, that they are about to propose structural changes to the tax code? More companies would be gone by the time they got around to it. Paying taxes in this atmosphere is warranted and it is wise."

(Neal rejected any suggestion his March 6 bill was a reaction to the furore generated three weeks earlier in the New York Times over the Stanley Works move to Bermuda.)

"We've been examining tax questions for a long time. Two years ago I offered legislation (with Republican Nancy Johnson to stop offshore insurance companies enjoying an 'unfair' advantage over those based in the US)."

Why did the legislation get nowhere?

"I don't think Congress as a whole was able to foresee the avalanche of offshore companies that were coming."

(Neal freely admits he received campaign money from some of the insurance companies in his constituency, and they had lobbied him over the Reinsurance Tax Equity Act bill he tabled with Johnson in 2001. Johnson is also reported to have received cash from US insurance giants.)

"I was happy to have it. My constituency has a huge presence of domestic insurers offering first class products, including sophisticated financial services, and they are not talking about leaving.

"They support the arts, the orchestras and education, and not once have I heard them say they would like to leave."

(Neal insists he bears no malice towards Bermuda, but he has to be coaxed several times before conceding the Island is a reputable jurisdiction.)

Do you think Bermuda is reputable?

"It is a beautiful island and I hope to visit it some day."

But as a jurisdiction?

"I don't have any any difficulty with Bermuda, none whatsoever."

But do you think it is a reputable jurisdiction?

"Yes, to my knowledge. I don't think of Bermuda in a bad sense. I don't argue that this is about Bermuda. It is about America.

"The President says we are in a war, and I agree. In a war, there is sacrifice and a sense of national purpose and clearly stated challenges that are required of us, including how do we pay for it."

He says the upsurge in American nationalism, and the outrage over US companies moving to places such as Bermuda was "the natural outcome of patriotism that people feel."

What message do you give to people of Bermuda who feel you are unfairly targeting the Island and other offshore jurisdictions?

"I don't think that my initiative is motivated by malice. It's pro-America."

Johnson and Maloney, who are both incumbents, are involved in the tightest of races against one another in a re-drawn seat in November. Stanley Works is in their seat, and both have been accused of trying to out-do one another on the Bermuda patriot tax issue.

How do you respond to claims that politicians are exploiting the patriotism to win votes?

"Confidence in the tax system is an essential part in our belief in the democratic system, and if people don't pay their taxes, it seems to me that confidence is eroded in the democratic idea and sense of community and all pulling the wagons together.

"The goal is not to intervene in any elections anywhere, as much as to support the notion of community that for the last 25 years I've believed in, and paying our taxes is an essential component of that belief."

***

With a warm shake of the hand, he ushers The Royal Gazette out of his office and, with a laugh, says he should visit Bermuda some time - if it is safe for him.