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Center for
Freedom and Prosperity
 P.O. Box 10882
Alexandria, Virginia 22310-9998
Phone: 202-285-0244
Fax: 208-728-9639
                                            

CFP Update, July 11, 2001

Center for Freedom and Prosperity's Weekly Update

1) Senator Inhofe Sends Letter to Treasury Secretary O'Neill

2) WSJE: The OECD Pulls A Bait-and-Switch On the U.S. Treasury

3) Leading Tax Scholar Steve Entin condemns the OECD anti-competition Project and the IRS QI Regulation

4) Mitchell: IRS Regulation Flouts Congress and Would Harm the Economy

5) Insight magazine's John Berlau article on "Tax Collector for the World"

6) The American Spectator: International Tax Police -- Pffft

7) CFP News Clips
 

1) Senator Inhofe Sends Letter to Treasury Secretary O'Neill

U.S. Senator James M. Inhofe of Oklahoma adds his name to a growing list of influential lawmakers who are concerned about the OECD/EU "information exchange" initiative.

"Simply stated, the United States should not conspire with uncompetitive, high-tax nations to create an anti-privacy cartel designed to uphold oppressive tax systems . . . it is clear that the ultimate target of Europe's information exchange proposals is the United States. We are the world's biggest beneficiary of tax competition, and high-tax nations would very much like to undermine our attractive tax and privacy laws."  Link to full letter below:
http://www.freedomandprosperity.org/ltr/inhofe/inhofe.shtml

2) WSJE: The OECD Pulls A Bait-and-Switch On the U.S. Treasury

The Heritage Foundation's Dan Mitchell has an op-ed in today's The Wall Street Journal Europe on the OECD pulling "A Bait-and-Switch On the U.S. Treasury."

"Fortunately, the battle is far from over. In an attack led by the Heritage Foundation and the Center for Freedom and Prosperity, the OECD agenda has attracted intense opposition from a wide range of think tanks, taxpayer groups, and free-market organizations in America. To be sure, the OECD has some friends in Washington. Career bureaucrats at Treasury are ideologically sympathetic to information exchange, and they have been somewhat successful in manipulating the president's political appointees. At some point, the White House will have to step in and make a final decision. And since the choice is between Europe's tax collectors and America's private sector, the OECD probably will have very little time to enjoy its victory."  Link to full story below:
http://www.freedomandprosperity.org/Articles/wsje07-11-01/wsje07-11-01.shtml

3) Leading Tax Scholar Steve Entin condemns the OECD anti-competition Project and the IRS QI Regulation

Institute for Research on the Economics of Taxation's (IRET) President and Executive Director Stephen J. Entin, a leading tax scholar in the U.S., has issued a Congressional Advisory entitled "Treasury's Qualified Intermediary Regulations And The OECD Tax Haven Initiative: Threats To International Capital Mobility And Investment."

The paper discusses the following:

"The United States Treasury is taking or considering action on two fronts in the international arena to shore up enforcement of the current individual income tax system. In the process, it needs to be careful not to harm the U.S. economy by driving away badly needed investment money. Some of the proposals under review could have the unfortunate side effect of interfering with prospects for fundamental tax reform and may encourage greater growth of government here and abroad." Link to full advisory below (PDF format):

4) Mitchell: IRS Regulation Flouts Congress and Would Harm the Economy

Heritage Foundation's Dan Mitchell has authored an executive memorandum on the "The proposed IRS regulation flouts congressional intent and seeks to overturn existing law. It is bad economic policy, bad tax policy, and bad regulatory policy. The Treasury Department should withdraw this misguided regulation." Link to full article below:
http://www.heritage.org/library/execmemo/em757.html

Note:  CFP's web page on this regulation below:
http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

5) Insight magazine's John Berlau article on "Tax Collector for the World"

Mr. Berlau's excellent article discusses the new IRS regulation on information exchange. Below is an excerpt from the article:

". . . IRS plans for data exchange could put human rights at risk. Increasingly, critics of the Chinese government, particularly those who live in Hong Kong, are putting some of their money in U.S. banks to avoid Beijing's watchful eye. "If those organizations [depositing in U.S. banks] are considered a political-opposition movement or potentially a political-opposition movement, then sharing their financial information with the Chinese secret-police gestapo would be very, very damaging and would jeopardize the survival of those organizations," says Ning Ye, a Chinese dissident living in exile in the United States who is president of the Free China Movement."  Link to the full story below
http://www.insightmag.com/archive/200107308.shtml

Note:  CFP's web page on this regulation below:
http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

6) The American Spectator: International Tax Police -- Pffft

July 9, 2001, The American Spectator, by Peter Hannaford, The Styles Page: International Tax Police -- Pffft
http://www.spectator.org/opinion/style/style010709.htm

7) CFP News Clips:

July 5, 2001, Rocky Mountain News, By David Milstead, 'Offshore' bank rethinks image: Wording on Web site spurred tax concerns
http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_741705,00. html

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July 5, 2001, Radio Australia News, Harsh sanctions no way to fight money laundering
http://www.abc.net.au/ra/newsdaily/s324110.htm

July 6, 2001, Tax-News.com, by Mike Godfrey, CFP Warns Offshore Jurisdictions to Keep Up Pressure on OECD
http://www.tax-news.com/asp/story/story.asp?storyname=4352

July 11, 2001, Tax-News.co, by Ulrika Lomas, Gordon Brown Threatens EU Colleagues With Beheading
http://www.tax-news.com/asp/story/story.asp?storyname=4417

Best regards,

Andrew Quinlan
Center for Freedom and Prosperity
President
202-285-0244
208-728-9639 (efax)
quinlan@freedomandprosperity.org
www.freedomandprosperity.org

 

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