Center for Freedom and Prosperity Foundation
For Immediate Release
Thursday, October 21, 2004
Coalition for Tax Competition says American Taxpayers Should not Subsidize OECD's Anti-Market Activities
Washington, DC (October 21, 2004) -- The Center for Freedom and Prosperity Foundation, joined by more than 30 of the country's largest and most influential free-market groups, announced opposition to U.S. subsidies for the Paris-based Organization
for Economic Cooperation and Development (OECD). The organizations, which participate in a Coalition for Tax Competition, shared their views with Senator Judd Gregg of New Hampshire and Congressman Frank Wolf of Virginia. Both lawmakers serve as Chairmen of their respective Appropriations Subcommittees in charge of funding Commerce, State and Justice.
Most OECD funding comes from the Department of State.
The letter to Chairmen Gregg and Wolf stated, "Even if we had a balanced budget, OECD funding would deserve scrutiny. The Paris-based bureaucracy increasingly promotes economic policies that are contrary to America's interests. We are particularly disturbed that the OECD has a 'harmful tax competition' project that seeks to hinder the flow of jobs and capital to low-tax nations. And since the United States is the world's biggest beneficiary of international capital flows and tax competition, it certainly seems ill advised for the American taxpayer to finance this effort." Full text of the letter is below.
Andrew F. Quinlan, president of the Center for Freedom and Prosperity and the CF&P
Foundation, commented, "The OECD receives about 25 percent of its budget – more than $60 million – from American taxpayers, yet they are pursuing initiatives that are contrary to U.S.
interests." Quinlan also lauded Senator Gregg for inserting language in the Senate Appropriations bill that discourages the OECD from continuing to push anti-competitive tax policies: "Senator Gregg's
leadership on this issue should be praised."
Daniel Mitchell, Heritage Foundation Senior Fellow, noted that, "The OECD was created to promote economic liberalization, so it is most unfortunate that the Paris-based bureaucracy has instead decided to promote the anti-market agenda of Europe's high-tax welfare states."
Veronique de Rugy, Adjunct Scholar at the Cato Institute and Research Fellow at the American Enterprise Institute echoed these sentiments, stating, "If the OECD is promoting French and German interests, it should rely on funding from France and Germany. American taxpayers certainly should not be picking up the tab for anti-US policies."
Selected quotes from additional members of the Coalition for Tax Competition:
Grover Norquist, President, Americans for Tax Reform
"Americans taxpayers should not feed the hand that is trying to steal their dinner plates. The OECD is growing fat thanks to hard working Americans, while the organization attempts to
choke the economy that feeds us all."
Kevin Hassett, Resident Scholar, American Enterprise Institute
"Ever since Madison, Americans believe that competition between units of government leads to outcomes that are desirable for citizens. The OECD is trying to stop beneficial tax
competition and the U.S should not support this effort."
Tom Schatz, President, Council for Citizens Against Government Waste
"Unable to beat us in the market place, certain member countries of the OECD use the organization to undermine our tax laws and economy. It is time for U.S. taxpayers to stop
supporting this organization."
Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council
"Moving towards a tax system in the U.S. that is more hospitable to entrepreneurship and economic growth is a long sought after goal by the small business community, yet the OECD
would bar such progress. Small business taxpayers should not be forced to fund initiatives that undermine their competitiveness and viability."
Tom Giovanetti, President, Institute for Policy Innovation
"It's bad enough that many international organizations have been overrun by anti-American and anti-capitalist activists. But what's worse is when Congress subsidizes their anti-American
advocacy with U.S. taxpayer dollars. It's time for Congress to wield its big stick and withhold U.S. funding for these organizations so long as they advocate anti-American policies."
Jim Martin, President, 60 Plus Association
"As head of a senior citizen's organization – well aware that so many senior's already struggle with high living expenses and fixed incomes – I am deeply concerned over the OECD's
over-reaching efforts to marginalize market forces and propel an anti-tax competition agenda. Bad tax policy is bad tax policy, whether national or international in scope. Robust tax competition is a good thing
and I would hope the United States takes the lead in assuring our tax dollars are well-invested in American interests, prominently free marketplace initiatives I know senior citizens support."
Charles W. Jarvis, Chairman, USA Next
"It is very important that America has a strong economy so we can best prepare for the retirement of the baby boom generation. That is another reason why U.S. taxpayer should not
subsidize an international bureaucracy that is seeking to undermine American competitiveness."
Representatives of the following 32 organizations signed the Coalition for Tax Competition letter:
60 Plus Association, Alliance for Worker Freedom, American Conservative Union, American Enterprise Institute, American Legislative Exchange Council, American Shareholders Association,
Americans for Prosperity Foundation, Americans for Tax Reform, Capital Research Center, The Cato Institute, Center for Freedom and Prosperity Foundation, The Club for Growth, Council for Citizens Against Government
Waste, Discovery Institute, Free Congress Foundation, Freedom Alliance, FreedomWorks, Frontiers of Freedom Foundation, The Heritage Foundation, Independent Women's Forum, Institute for Policy Innovation, Institute
for Research on the Economics of Taxation, National Center for Policy Analysis, National Retail Sales Tax Alliance, National Tax Limitation Committee, National Taxpayers Union, Pacific Research Institute, Public
Interest Institute, Small Business & Entrepreneurship Council, Taxpayers League of Minnesota, The Sovereign Society, and USA Next.
Link to the full text of the Coalition for Tax Competition Letter:
PDF Version of Coalition Letter:
Text of Letter:
COALITION FOR TAX COMPETITION
October 20, 2004
Senator Judd Gregg
304 Russell Senate Office Building
United States Senate
Washington, DC 20510
Representative Frank Wolf
241 Cannon House Office Building
United States House
Washington, DC 20515
Dear Senator Gregg and Representative Wolf,
Federal spending is too high and should be reduced. As part of an overall effort to help control the size of government, we believe American taxpayers should not subsidize the Organization
for Economic Cooperation and Development (OECD).
Even if we had a balanced budget, OECD funding would deserve scrutiny. The Paris-based bureaucracy increasingly promotes economic policies that are contrary to America's interests. We are
particularly disturbed that the OECD has a "harmful tax competition" project that seeks to hinder the flow of jobs and capital to low-tax nations. And since the United States is the world's biggest beneficiary of
international capital flows and tax competition, it certainly seems ill advised for the American taxpayer to finance this effort.
Reductions in OECD funding also could be augmented by restrictions that withhold funds until and unless anti-US policies are suspended. Simply stated, if international bureaucracies want to
pursue interventionist policies, they should not expect American taxpayers to pick up the tab.
We look forward to working with you to bring spending under control and to making sure that US tax dollars are allocated in ways that advance America's interests.
Andrew F. Quinlan -- President, Center for Freedom and Prosperity Foundation
Daniel J. Mitchell -- Senior Fellow, The Heritage Foundation
Veronique de Rugy -- Adjunct Scholar, The Cato Institute
Robert E. Bauman -- Legal Counsel, The Sovereign Society
Daniel Clifton -- Executive Director, American Shareholders Association
Ryan Ellis -- Executive Director, Alliance for Worker Freedom
Stephen J. Entin -- President, Institute for Research on the Economics of Taxation
Paul J. Gessing -- Director of Government Affairs, National Taxpayers Union
Tom Giovanetti -- President, Institute for Policy Innovation
John C. Goodman -- President, National Center for Policy Analysis
Kevin Hassett -- Resident Scholar, American Enterprise Institute
Lawrence Hunter -- Chief Economist, FreedomWorks
Charles W. Jarvis -- Chairman, USA Next
David A. Keene -- Chairman, American Conservative Union
Karen Kerrigan -- President & CEO, Small Business & Entrepreneurship Council
Thomas P. Kilgannon -- President, Freedom Alliance
Michelle Korsmo -- Vice President, Americans for Prosperity Foundation
Lisa Mac Lellan -- Vice President of Public Policy, Pacific Research Institute
James L. Martin -- President, 60 Plus Association
Steve Moore -- President, The Club for Growth
Grover Glenn Norquist -- President, Americans for Tax Reform
Duane Parde -- Executive Director, American Legislative Exchange Council
Nancy M. Pfotenhauer -- President, Independent Women's Forum
Don Racheter -- President, Public Interest Institute
Richard W. Rahn -- Senior Fellow, Discovery Institute
Terrence Scanlon -- President, Capital Research Center
Tom Schatz -- President, Council for Citizens Against Government Waste
David Strom -- President, Taxpayers League of Minnesota
Lewis K. Uhler -- President, National Tax Limitation Committee
Paul M. Weyrich -- Chairman and CEO, Free Congress Foundation
Neal C. White -- President, National Retail Sales Tax Alliance
Jason F. Wright -- Vice President, Frontiers of Freedom Foundation
* Organizations listed for identification purposes only
Center for Freedom and Prosperity
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