November 22, 2000
Center for Freedom and Prosperity
Formed to Protect Tax Competition
A new group called the Center for Freedom and Prosperity (CF&P) vowed Nov. 20 to protect tax competition, financial privacy, and fiscal sovereignty.
The group's immediate priority is leading the fight against the Organization for Economic Cooperation and Development's (OECD) harmful tax competition initiative, it said in a news release.
The OECD published earlier this year a long-awaited list of 35 tax havens
and 47 preferential regimes across the world's industrialized countries that may pose problems of tax competition (124 DTR G-1, G-3, 6/27/00).
The center's release said the OECD threatened the financial protectionism against nations with low-tax policies if they do not change their laws to make it easier for Europe's welfare states
to collect more revenue.
House Majority Leader Dick Armey (R-Texas) said recently that OECD's efforts to eliminate harmful tax competition practices is creating a "tax cartel," and the United States should
reject its policy (179 DTR G-5, 9/14/00).
Coalition for Tax Competition Formed
The CF&P formed the Coalition for Tax Competition, which it said would protect competitive international markets. Working with targeted governments, financial institutions, multinational businesses, and interested individuals, the coalition "will fight against proposals that make it easier for politicians to prop up burdensome tax systems by undermining financial privacy and trampling on fiscal sovereignty," the news release.
"Tax competition and financial privacy should be celebrated, not persecuted," CF&P President Andrew Quinlan said.
CF&P Board Chairman Daniel Mitchell compared the situation to a group of five gas stations in a town conspiring to raise prices. "Why is it better for governments to get together
and conspire to raise prices?" he said.
"Europe's welfare state politicians resent the loss of jobs and capital to the United States," Mitchell added. "If the OECD succeeds in bullying small nations in the
Caribbean, they will then go after bigger targets such as Switzerland, Singapore, Ireland, and America."
The center, which was formed two months ago, will hold its first public briefing at the Caribbean/Latin America Action conference in
Miami Dec. 7, where Quinlan and Mitchell will brief attendees on the threat to the region's financial services industry, the release said.
Additional information may be obtained by calling (202) 285-0244 or accessing CF&P's World Wide Web site at http://www.freedomandprosperity.org.
Copyright © 2000 by The Bureau of National Affairs, Inc., Washington D.C.