For Immediate Release
Monday, March 25, 2002
The Case for International Tax Competition:
A Caribbean Perspective
The Center for Freedom and Prosperity Foundation released a paper today entitled, "The Case for International Tax Competition: A Caribbean Perspective," the sixth analysis released by the CFP Foundation in its "Prosperitas" series.
The report finds that one voice is missing in the tax competition/tax harmonization debate. That is the voice of the persecuted jurisdictions, especially the ones targeted by the Organization for Economic Cooperation and Development's proposal to eliminate so-called Harmful Tax Competition. This paper gives voice to the views of those jurisdictions negatively affected by the OECD's fiscal imperialism and discusses the moral, economic, and development implications of tax harmonization proposals such as "information exchange."
The paper's author is Carlyle Rogers a native of the Eastern Caribbean island of Anguilla and a post-graduate external research student at the University of London pursuing a master's degree in
Corporate and Commercial Law. He is also qualifying as a Solicitor in England and Wales at London's College of Law.
An excerpt from the paper:
Persecuted low-tax jurisdictions would lose their sovereign right to determine how income is taxed within their borders. Instead, they would be forced to emasculate financial privacy laws
so that high-tax nations can impose their oppressive tax burdens on income earned in low-tax economies. The high-tax nations are so anxious to prop up their welfare states that they are threatening to impose
financial protectionism against so-called tax havens.
The 40 low-tax jurisdictions targeted by the OECD have certain basic features in common. These include the fact that they are:
- Small independent or non-independent countries or territories, many in the developing world.
- Using financial services as a means to diversify their economic base.
- Predominantly former or current colonies or territories of OECD member countries.
- Not members of the OECD.
The Paris-based bureaucracy has targeted these jurisdictions in a misguided attempt to imprison an increasingly mobile tax base in order to maintain the inefficient and unproductive welfare states of
OECD member nations. The OECD seeks to do this at the expense of poorer developing countries seeking to gain a foothold on the ladder of economic progress. In a globally liberalized world where trade barriers
are falling, tax competition is a legitimate strategy for economic development.
Not only do sovereign states have a right to use their tax systems to lure foreign investment; they owe a duty to their citizens to use all and every legitimate mean to generate economic activity and growth.
For additional information please contact:
Center for Freedom and Prosperity Foundation
Additional Issues of Prosperitas:
January 2002, Prosperitas Vol. II, Issue I, U.S. Government Agencies Confirm That Low-Tax Jurisdictions Are Not Money Laundering Havens, by Daniel J. Mitchell. Web page link below:
November 2001, Properitas, Vol. I, Issue IV, The Adverse Impact of Tax Harmonization and Information Exchange on the U.S. Economy, by Daniel J. Mitchell. Web page link below:
October 2001, Properitas, Vol. I, Issue III, Money Laundering Legislation Would Discourage International Cooperation in the Fight Against Crime, by Andrew F. Quinlan. Web page link below:
August 2001, Properitas, Vol. I, Issue II, United Nations Seeks Global Tax Authority, by Daniel J. Mitchell. Web page link below:
August 2001, Properitas, Vol. I, Issue I, Oxfam's Shoddy Attack on Low-Tax Jurisdictions, by Daniel J. Mitchell. Web page link below:
The Center for Freedom and Prosperity Foundation is a nonprofit, nonpartisan public policy, research, and educational organization operating under Section 501(C)(3). The CFP Foundation is the
research and educational affiliate of the Center for Freedom and Prosperity (CFP) and can be reached by calling 202-285-0244 or visiting our web site at www.freedomandprosperity.org.