What is the Coalition for Tax Competition

The Coalition for Tax Competition is bringing scores of policy experts to the cause of tax competition. Our coalition partners represent millions of contributing individuals, work with members of Congress and legislators in all 50 states as well as international politicians and reach hundreds of millions of taxpayers worldwide through their respective media programs.

The Coalition for Tax Competition now includes more than 35 influential organizations around the world. The CTC coordinates the resources of free-market organizations that produce research, work with policymakers, and inform the general public on matters pertaining to tax competition, financial privacy and fiscal sovereignty.

Why is the Coalition needed?

Because it is increasingly possible for people to shift their economic activity across national borders, governments face pressure to reduce tax rates in order to keep investment and entrepreneurial talent from moving to lower-tax environments. This is what is known as tax competition and it is an important check on excessive government.

High-tax nations, not surprisingly, want to stop tax competition. Working through the European Union (EU), the United Nations (UN), and the Organization for Economic Co-operation and Development (OECD), these countries are seeking to dictate tax policy around the world in order to protect themselves from competition.  The OECD, UN, and EU all believe that high-tax governments should have the right to tax income earned in low-tax jurisdictions.

The international bureaucracies are wrong. Competition, privacy, and sovereignty are inherent features of a free society. When governments collude, taxpayers lose. This is why tax competition between countries should be celebrated, not persecuted.

Consider what happened, for instance, when President Ronald Reagan and Prime Minister Margaret Thatcher dramatically reduced income tax rates about twenty years ago: Every other industrialized nation was forced to lower tax rates. In most cases, this was not because politicians wanted to increase economic freedom. Instead, they felt compelled to make these changes because investment and entrepreneurial talent was flowing to the United States and the United Kingdom.

Fortunately, the international bureaucracies have no power to impose their tax harmonization agendas. A global tax cartel will not work so long as key nations do not participate – particularly the United States. This is why the Coalition for Tax Competition has mounted an effective education campaign designed to help U.S. lawmaker understand why the OECD, EU, and UN agendas are contrary to America’s national interests.

The international bureaucracies’ campaign against tax competition is ill-advised for a number of reasons. For instance, it is:

  • An Attack on Taxpayers. The OECD is trying to create a cartel of high-tax nations. This arrangement – sort of an OPEC for politicians – would mean higher taxes and undermine any hope for meaningful tax reform.
  • An Attack on Free Trade and Global Commerce. The OECD urges member nations to penalize low-tax regimes with severe and discriminatory financial protectionism. In effect, the OECD wants to impose a financial blockade against targeted nations.
  • An Attack on Sovereignty. The OECD not only is trying to bully “tax havens” into raising their tax rates and eliminating financial privacy, but also asserts the right to interfere with American tax laws. Sovereign nations should be able to determine their own tax policies.
  • An Attack on Privacy. An implicit feature of the OECD campaign is that governments should be allowed to tax income and activities that take place outside their borders. This means that privacy will be sacrificed to make life easier for tax collectors. Moreover, governments want to force financial service companies and professional service providers to spy on their customers to help track down additional tax revenue.

A list of organizations affiliated with Coalition for Tax Competition is listed below. The list is followed by a summary of the 10 coalition letters sent to the President and Members of Congress:

For more information, or to join the Coalition, please contact us at ctc@freedomandprosperity.org.

Organizations affiliated with Coalition for Tax Competition

American Enterprise Institute The Heritage Foundation
American Legislative Exchange Council Independent Women’s Forum
Americans for Tax Reform Institute for Policy Innovation
American Shareholders Association IRET
Association of Concerned Taxpayers National Center for Policy Analysis
Capital Research Center National Retail Sales Tax Alliance, Inc
Cato Institute National Small Business United
CF&P Foundation National Tax Limitation Committee
Citizens for a Sound Economy National Taxpayers Union
The Club for Growth The Performance Institute
Coalition for Tax Competition The Potomac Foundation
Coalitions for America Privacilla.org
Competitive Enterprise Institute Public Interest Institute
Council for Citizens Against Gov’t Waste 60 Plus Association
Discovery Institute Small Business & Entrepreneurship Council
Empower America Southeastern Legal Foundation, Inc.
Free Congress Foundation The Sovereign Society
Freedom Alliance United Seniors Association
Frontiers of Freedom Institute U.S. Chamber of Commerce

For more information, or to join the Coalition for Tax Competition, please contact us at ctc@freedomandprosperity.org.

Coalition Letters & Statements

  1. Letter to President Bush on Anti-Money Laundering Legislation
  2. Letter on Interest-Reporting Regulation
  3. Letter to OMD Director Daniels Opposing Interest-Reporting Regulation
  4. Letter to Secretary O’Neill Urging Adoption of Territorial Tax System
  5. Letter Urging Rejection of Fiscal Protectionism
  6. Letter to Rep. Thomas on Tax Code Changes
  7. Letter to Secretary O’Neill on Interest-Reporting Regulation
  8. Thank-You Letter to Rep. Sweeney
  9. Letter to Secretary Snow on Interest-Reporting Regulation
  10. Letter on OECD Funding
  11. Second Letter to Secretary Snow on Interest-Reporting Regulation
  12. Letter to OMB Director Bolten on OECD Funding
  13. Third Letter to Secretary Snow on Interest-Reporting Regulation
  14. Letter to Henry Paulson on Protecting Tax Competition
  15. Letter to World Bank
  16. Letter Against a Value-Added Tax
  17. Letter on FATCA
  18. Letter on IRS Non-Resident Alien Deposit Interest Reporting Regulation
  19. Letter on Need for FATCA Cost-Benefit Analysis
  20. Letter to Congressional Leadership on Repealing FATCA
  21. Second Letter to Secretary Geithner on IRS Reporting Regulation