The Center for Freedom and Prosperity Foundation, joined by 31 of the country’s most influential free-market groups, has sent a letter urging the World Bank “to stand on the side of tax competition and fiscal sovereignty and not for bigger and more intrusive governments.”
The Coalition for Tax Competition letter is in response to an upcoming World Bank study on the relationship between so-called offshore financial centers and economic development (see fact sheet below on the study). Done properly, such a study shows that low-tax jurisdictions and tax competition promote global prosperity. Unfortunately, the people pushing this study have an anti-liberalization agenda and will pressure the World Bank into producing a report that unfairly attacks low-tax policies.
April 2, 2008
Robert B. Zoellick
World Bank Group
1818 H Street, NW
Washington, DC 20433
Dear Mr. Zoellick,
We are writing on behalf of the supporters of tax competition to express our concern about reports that the World Bank is being pressured into a campaign against low-tax policies.
This would be a mistake for the institution. The World Bank should not be involved in a project that seeks to undermine tax competition.
There is considerable evidence that tax competition – by encouraging lower tax rates and fundamental tax reform – has been good for the global economy. Indeed, the World Bank should embrace tax competition for its ability to stimulate pro-growth policies that encourage investment and innovation.
Efforts to stymie tax competition are contrary to sound economic policy. The major opponents of tax competition-such as the Tax Justice Network and the OECD-espouse a harsh ideological approach, under which high-tax nations dictate global tax policy. Their central objective is increased statism at the expense of fiscal sovereignty. The World Bank should actively oppose this objective, not facilitate it.
Please review the attached CF&P Fact Sheet for more information on our concerns.
Thank you in advance for your time and we hope that the World Bank will stand on the side of tax competition and fiscal sovereignty and not for bigger and more intrusive governments.
Andrew F. Quinlan ~ President, Center for Freedom and Prosperity Foundation
Grover Norquist ~ President, Americans for Tax Reform
Duane Parde ~ President, National Taxpayers Union
David A. Keene ~ Chairman, American Conservative Union
Karen Kerrigan ~ President & CEO, Small Business & Entrepreneurship Council
Thomas Schatz ~ President, Council for Citizens Against Government Waste
Matt Kibbe ~ President, FreedomWorks
Paul M. Weyrich ~ National Chairman, Coalitions for America.
Morton C. Blackwell ~ President, Leadership Institute
Clyde Wayne Crews ~ Vice President for Policy, Competitive Enterprise Institute
Tim Phillips ~ President, Americans for Prosperity and AFP Foundation
Patrick J. Toomey ~ President, Club for Growth
Steve Faris ~ National Chairman, American Legislative Exchange Council
Terrence Scanlon ~ President, Capital Research Center
Ryan Ellis ~ Executive Director, American Shareholders Association
John McClaughry ~ President, Ethan Allen Institute
Roland A. Boucher ~ Chairman, United Californians for Tax Reform
David Strom ~ President, Taxpayers League of Minnesota
Don Racheter ~ President, Public Interest Institute
Amy Moritz Ridenour ~ President, National Center for Public Policy Research
Stephen J. Entin ~ President, Institute for Research on the Economics of Taxation
James L. Martin ~ President, 60 Plus Association
Jeffrey R. Boeyink ~ President, Iowans for Tax Relief
William Wilson ~ President, Americans for Limited Government
Herbert London ~ President, Hudson Institute
John Pugsley ~ Chairman, Sovereign Society
Lewis K. Uhler ~ President, National Tax Limitation Committee
Bill Sizemore ~ Executive Director, Oregon Taxpayers Union
Rick Durham ~ President, Tennessee Tax Revolt, Inc.
Karl Peterjohn ~ Executive Director, Kansas Taxpayers Network
Lori Klein ~ President, Taxpayer’s Protection Alliance
Henry L. Thaxton ~ Director, West Virginians Against Government Waste