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Center for
Freedom and Prosperity
 P.O. Box 10882
Alexandria, Virginia 22310-9998
Phone: 202-285-0244
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CFP Weekly Update, 12-12-01

Center For Freedom and Prosperity's Weekly Update

1) Washington Update

2) CFP Successful in Miami

3) Forbes Lambastes International Bureaucracies; Gets Rave Reviews at CLAA Conference

4) EU's Major Set Back. . . Savings Tax Cartel Collapses…for Now

5) The Return of Benedict Arnold: Is he deluded or deceptive?

6) What a Surprise! Former Clinton Official Endorses EU's Tax Harmonization Scheme

7) CFP News Clips

 

1) Washington Update

This update includes reports on CFP's successful trip to the annual Caribbean/Latin American Action Conference in Miami, Steve Forbes' inspiring speech at the conference, and the setback to the European Union on its Savings Tax Directive.

In Washington, this week, we plan to be on Capitol Hill meeting with Congressional aides explaining the adverse impact on the U.S. from adopting the OECD/EU tax harmonization agendas. We also plan to meet with government officials to discuss the need to kill the Clinton-era regulation on reporting nonresident alien (foreign) savings deposit interest information to home countries.

In closing, since we started CFP just a year ago a lot has happened on the OECD "harmful tax competition" front. Much of it has been good news. However, after September 11th, demagogues have taken advantage of the situation to push legislation that otherwise would never have seen the light of day. But we will continue to travel the globe, visit Capitol Hill, and meet with anyone to ensure that our message gets to the right people.  The only way we can do this is with your continued support. After the holidays, in the next few weeks, CFP will be launching its second year of operation and we appreciate your continued help and we look forward to working with you into New Year.

 

2) CFP Successful in Miami

We just returned from the annual Caribbean/Latin American Conference in Miami. We met with many leaders from the region and we renewed old contacts. The good news to report is that the region seems more than ever united against the tax harmonization agendas of the Organization for Economic Cooperation and Development and the European Union.  The bad news is the OECD and the EU are more aggressive then ever.  Dan Mitchell of the Heritage Foundation spoke on one of the panels and he used his recent CFP Foundation paper on the "The Adverse Impact of Tax Harmonization and Information Exchange on the U.S. Economy." We believe that once we travel to the Hill and educate more American policy makers on the dangers of the OECD/EU tax harmonization effort and the adverse effect on the U.S. economy, we will win and keep the U.S. out of the EU tax cartel.

News Reports on Conference:

December 6, 2001, The Miami Herald, By Jane Bussey And Gregg Fields Caribbean delegates voice concerns over free trade pact
http://www.miami.com/herald/content/business/national/digdocs/077578.htm

December 6 2001, Sun-Sentinel (Fort Lauderdale, FL), By Antonio Fins, Bahamas official fends off criticism on 'tax-haven' label
http://www.sun-sentinel.com/business/local/sfl-zfinance06dec06.story

December 10, 2001, Tax-News.com, by Amanda Banks, Bahamian Official Vows To Rebut International Tax Pressure
http://www.tax-news.com/asp/story/story.asp?storyname=6618

 

3) Forbes Lambastes International Bureaucracies; Gets Rave Reviews at CLAA Conference.

Former Presidential Candidate and leading U.S. publisher and entrepreneur Steve Forbes was greeted by standing ovations and cheering crowds as he spoke at the annual Caribbean/Latin American Conference in Miami. Mr. Forbes' wisdom was quite apparent as he used the opportunity to lambaste the crazy policies of international bureaucracies such as the Organization for Economic Cooperation and Development and the European Union.  Mr. Forbes noted that the OECD's proposed tax cartel was a front for the EU, particularly welfare states like France. He also condemned those who dishonestly use "money laundering" as an excuse to push a high-tax agenda.

It looks as if Mr. Forbes will be taking a more prominent role in the defense of tax competition, financial privacy and fiscal sovereignty. The Center looks forward to working with Mr. Forbes in the future.

 

4) EU's Major Set Back. . . Savings Tax Cartel Collapses…for Now

Talks over a European Union plan to create a cartel for the purpose of double-taxing income that is saved and invested collapsed after Luxembourg and Austria objected to the plan. This could be a huge victory for supporters of market liberalization and fiscal competition, but it is not time to celebrate. The bureaucrats intend to meet later this week in an effort to resuscitate their dangerous initiative.

'Luxembourg's position is not open to change and will not change,' said the principality's Prime Minister Jean-Claude Juncker. Full article linked below:

December 6, 2001, Tax-News.com, by Ulrika Lomas, EU Talks On Savings Tax Directive Collapse
http://www.tax-news.com/asp/story/story.asp?storyname=6584

December 5, 2001, Bureau of National Affairs, by Joe Kirwin, Luxembourg, Austria Raise Obstacles To EU Cross-Border Savings Tax Plan
http://www.freedomandprosperity.org/Articles/bna12-05-01/bna12-05-01.shtml

 

5) The Return of Benedict Arnold: Is he deluded or deceptive?

Richard Hammer of the OECD's Business and Industry Advisory Committee (and prior recipient of the Benedict Arnold Award, see http://www.freedomandprosperity.org/hall/hall.shtml#shame) continues to carry water for the tax-hungry bureaucrats. At a tax policy conference in New York City Tuesday, Mr. Hammer asserted that the OECD's tax harmonization agenda is needed to stop terrorists. Yet it is now widely recognized that the terrorists relied on the banking systems of the U.S., England, Germany, and various Middle East nations, none of which are tax havens (and, as Veronique de Rugy pointed out in her Wall Street Journal Europe editorial, terrorists are motivated by hate, not tax minimization, link below).

This raises an interesting question. Is Mr. Hammer aware that he is making foolish arguments? If he does know that his arguments are false, then his dishonesty should be condemned. But what if he genuinely believes what he is saying? Perhaps, as some in the business community have suggested, he has "gone native." One can only imagine, after all, the mind-numbing effect of attending endless taxpayer-financed cocktail parties and receptions in Paris.

October 24, 2001, The Wall Street Journal Europe, by Veronique de Rugy, International Commentary: Of Terrorists and Taxes
http://www.freedomandprosperity.org/Articles/wsje10-24-01/wsje10-24-01.shtml

 

6) What a Surprise! Former Clinton Official Endorses EU's Tax Harmonization Scheme

Joseph Guttentag, former international tax counsel at the U.S. Treasury Department, endorses the European Union's Tax Harmonization agenda.  This hardly comes as a surprise. We wonder if Mr. Guttentag has read CFP Foundation's comprehensive study showing why tax harmonization is a threat to America's competitive advantage. More importantly, we wonder if it would do any good if he did read the report? Link to CFPF report below and article on Guttentag's comments:

December 7, 2001, Bureau of National Affairs, by Myrna Zelaya-Quesada, Experts Praise EU Harmonization Effort But Foresee Difficulties With Transition
http://www.freedomandprosperity.org/Articles/bna12-07-01/bna12-07-01.shtml

November 2001, Prosperitas Vol. I Issue IV,  by Daniel J. Mitchell, The Adverse Impact of Tax Harmonization and Information Exchange on the U.S. Economy
http://www.freedomandprosperity.org/press/p11-27-01/p11-27-01.shtml

 

7) CFP News Clips

December 10, 2001, Tax-News.com, by Mike Godfrey, Antigua & Barbuda And US Sign Tax Information Exchange Pact
www.tax-news.com/asp/story/story.asp?storyname=6620

December 10, 2001, AccountinWeb.co.uk, by , Malcolm FinneyTax havens of the world: cooperate or die?
http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=65197&d=448&h=0&f=0&datefor mat=%o%20%B%20%Y

December 10, 2001, Tax-News.com, by Amanda Banks, US Tax Pact Does Not Herald 'Open Season' In The Caymans, Say Officials
www.tax-news.com/asp/story/story.asp?storyname=6614

December 8, 2001, New York Times, By David Cay Johnston, Manhattan Prosecutor Criticizes Caymans Tax Pact
http://www.nytimes.com/2001/12/08/business/worldbusiness/08TAX.html

December 6, 2001, Cato Institute, by Roger Pilon, First Thoughts on the New Money Laundering Act
http://www.cato.org/current/terrorism/pubs/pilon-011205.html

December 6, 2001, Bureau of National Affairs, by Myrna Zelaya-Quesada, OECD Report Anticipates Rise in Use of Corporate Entities for Tax Evasion
http://www.freedomandprosperity.org/Articles/bna12-06-01/bna12-06-01.shtml

December 6, 2001, Knight Ridder Newspapers, Argentina in cash chaos Government orders use of debit cards over currency
http://arizonarepublic.com/news/articles/1206argentina06.html

December 6, 2001, Financial Times, By Goran Grosskopf and Henri Lachma, COMMENT & ANALYSIS: Think again, Mario: The European Commission's competition policy undermines the free market, say Goran Grosskopf andHenri Lachma:
http://globalarchive.ft.com/globalarchive/article.html?id=011206000173

December 4, 2001, Tax-News.com, Washington Group Lambasts OECD, EU
http://www.tax-news.com/asp/story/story.asp?storyname=6549

December 4, 2001, Wap.com, Nokia made in Cayman Islands?
http://www.wap.com/share/osas/cache/artid551353.html

December 1, 2001, The Financial Times, Bahamas: Supreme Court ruling on banking secrecy seen as restoring rule of law
http://globalarchive.ft.com/globalarchive/article.html?id=011201003517

November 30, 2001, Tax-News.com, US Senate Votes For Tax Competition
http://www.tax-news.com/asp/story/story.asp?storyname=6510

November 30 2001, Financial Times, By Peronet Despeignes, Greenspan stresses competition's effect on euro
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3Y5X0FOUC

Released Thursday, November 29, 2001, The Nassau Guardian, by Raynard Rigby, A blatant case of financial mismanagement.
http://www.thenassauguardian.com/news_display.php?prid=2914

 

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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