For Immediate Release
Thursday, May 3, 2007
Biased Senate Hearing Attacks Low-Tax
Jurisdictions While Ignoring Need to Reform
Anti-Competitive U.S. Tax Code
(Washington, DC, Thursday, May 3, 2007) The Senate Finance Committee today is holding a hearing on offshore tax evasion. The hearing, including a witness list that does not include
a single person representing the interests of taxpayers, is designed to blame so-called tax havens for the tax gap. This is empty political theatre. Offshore jurisdictions are routinely vilified, largely because
they are perceived as a threat by politicians, leftist organizations, and other advocates of bigger government and high tax rates. In almost all cases, however, attacks on these low-tax jurisdictions are either
baseless or distorted.
To bring balance, the Center for Freedom and Prosperity Foundation is providing a pre-release copy of a new study puncturing some of the myths surrounding tax havens and their role in the global economy. Entitled
"Tax Havens: Myth Versus Reality,"
the Prosperitas study is designed to be a user-friendly resource for policy makers and journalists seeking both sides of the story.
Andrew F. Quinlan, President of the Center for Freedom and Prosperity, commented: "the Finance Committee's one-sided hearing is designed for all intents and purposes to create momentum for policies that will harm American competitiveness. If lawmakers genuinely wanted
to reduce tax evasion they would lower tax rates."
Dan Mitchell, Senior Fellow at the Cato Institute, added; "tax
havens boost America's economy by providing a way for foreigners to invest trillions of dollars in U.S. markets. Tax havens also help America by providing tax-efficient platforms for U.S. companies and investors
competing to earn market share in the global economy."
Veronique De Rugy, Senior Fellow at the Mercatus Center, noted;
"the Finance Committee's decision to promote a European anti-tax competition agenda is puzzling, particularly since the Organization for Economic Cooperation and Development (OECD) has a long track record of
pursuing policies that would undermine America's competitive position in the global economy."
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, firstname.lastname@example.org
Dan Mitchell can be reached at 202-218-4615, email@example.com
Veronique de Rugy can be reached at 703-993-4930, firstname.lastname@example.org