Center for Freedom and Prosperity Press Statement
For Immediate Release
Wednesday, November 14, 2001
Notwithstanding Concessions, OECD "Harmful
Tax Competition" Scheme is Still Bad Idea:
Contrary to America's Economic Interests
The Following are statements by Center for Freedom and Prosperity President Andrew F. Quinlan and Heritage Foundation Senior Fellow Daniel J. Mitchell on the release of the OECD's so-called Progress Report on Addressing Harmful Tax Practices:
Andrew Quinlan, President, Center for Freedom and Prosperity:
"The Organization for Economic Cooperation and Development's anti-tax competition scheme is becoming an international joke. Once again, the Paris-based bureaucrats have been forced to
delay their alleged deadline. Moreover, the OECD has been forced to scale back its demands. It also is good to see that the OECD has relented to Bush Administration pressure and moderated its strident tone.
Nonetheless, the OECD's tax harmonization initiative is still inconsistent with sound tax policy.
"The OECD's plan was wrong three years ago, the plan was wrong last year and the plan is wrong today.
The Center for Freedom and Prosperity will work hard over the next several months in Washington to insure that all lawmakers and policy makers are aware of the threat that tax harmonization poses to America's national interests."
Daniel J. Mitchell, Senior Fellow, The Heritage Foundation:
"The U.S. is the world's biggest beneficiary of international tax competition.
Because of our relatively low burden and appealing tax and privacy laws for overseas investors, America is the world's largest tax haven. These policies have helped to attract more than $9 trillion to our economy. The last thing America should do is support policies that undermine its competitive advantage.
"But opposition to tax harmonization should be based on more than just self interest. The OECD scheme is based on three flawed assumptions: 1) that income which is saved and invested should be
subject to double-taxation; 2) that governments should tax income earned outside their borders; 3) that harmonized tax rates will boost the economy. This is why the OECD initiative is a major threat to fundamental
The Center for Freedom and Prosperity is an Alexandria, Virginia-based, 501(c)(4) nonprofit, nonpartisan organization that lobbies Congress and the Administration on tax competition, financial privacy and fiscal sovereignty.
For additional comments:
Andrew Quinlan can be reached at 202-285-0244
Dan Mitchell can be reached at 202-608-6224