Wednesday, January 31, 2001

OECD Strikes Out in London,
U.S. Position Misrepresented

     Washington, DC – At a London task force meeting last weekend, the Organization for Economic Cooperation and Development (OECD) once again failed to make progress in their campaign against tax competition, financial privacy, and fiscal sovereignty. The Center for Freedom and Prosperity hailed this development, praising low-tax countries for resisting the OECD's fiscal imperialism.

     Dan Mitchell, chairman of the Center and a senior fellow at the Heritage Foundation, stated, "We went to London to offer support and advice to the low-tax nations. Our goal, as outlined in our strategy memo, was to make sure none of the low-tax countries acquiesced to the OECD's one-sided Memorandum of Understanding. We're happy to report that our mission was accomplished."

     Andrew Quinlan, the president of CFP, commended low-tax countries, stating "Taxpayers around the world owe a debt of gratitude to Prime Minister Owen Arthur of Barbados and Sir Ronald Sanders, Antigua's High Commissioner in London. These gentlemen played an instrumental role in the negotiations and refused to be bullied by the OECD."

     The London task force meeting also generated some controversy, as several sources revealed that the OECD is claiming that the Bush Administration actively supports their initiative – including the threat to impose financial protectionism against low-tax nations. Mr. Mitchell strongly condemned this tactic, noting that "Neither President Bush nor Treasury Secretary O'Neill have expressed any support for the OECD's campaign against low taxes and financial privacy. Indeed, we are very optimistic that the new administration will take the opposite position once they have a chance to review the issue."

     Mr. Quinlan concurred, adding that "Career bureaucrats at the Treasury Department and IRS are trying to tie the hands of the new Treasury Secretary, but they will not succeed. The Center will be meeting with Bush Administration officials and key lawmakers on Capitol Hill to make sure that this issue is decided on the basis of what is best for taxpayers and the American economy, not what is best for tax collectors."

     CFP also announced that it will send a delegation to Tokyo for the OECD's February 15-16 regional conference.

     The Center for Freedom and Prosperity is a nonprofit independent organization created to promote market liberalization.  The Center was founded by Andrew Quinlan, a former senior aide to Congress' Joint Economic Committee, Veronique de Rugy of George Mason University, and Daniel Mitchell, a Senior Fellow at the Heritage Foundation.

For more information please visit our web site at www.freedomandprosperity.org.

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