Center for Freedom and Prosperity
For Immediate Release
Tuesday, October 25, 2011
202-285-0244
www.freedomandprosperity.org
Coalition for Tax Competition Urges End to Taxpayer Subsidies for Paris-Based OECD
(Washington, D.C., Tuesday, October 25, 2011) In a letter released today, the Coalition for Tax Competition asked members of Congress to cut the $100 million taxpayer subsidy to the Organization for Economic Cooperation and Development. Citing the OECD’s record as an opponent of tax competition, the letter argues that US taxpayers should not be funding an organization which works against their interests by promoting a statist agenda. The letter was signed by leaders from 16 prominent think tanks and influential taxpayer protection organizations.
An excerpt from the letter:
“…We have long been disturbed that the OECD has a “harmful tax competition” project that seeks to hinder the flow of jobs and capital to low-tax nations. And since the United States is the world’s biggest beneficiary of international capital flows and tax competition, it is the height of folly for the American taxpayer to subsidize this effort.
There is also a disturbing trend where the OECD endorses big government positions on domestic policy issues. The OECD has supported so-called “stimulus” spending, advocated for cap-and-trade regulation, and suggested a value-added tax in the US, just to name a few examples. In effect, US taxpayers are subsidizing further advocacy for bigger government and higher taxes – positions against their own interests.”
Link to CTC Letter:
http://www.freedomandprosperity.org/files/OECD/CTC%20OECD%20defunding%20letter%202011.pdf
The US provides nearly 25 percent of the total OECD budget, yet gets a negative return on that money. Dominated by the European welfare sates, the OECD typically works to advance European-style big government policies. Given the long-overdue need for spending restraint, counterproductive subsidies for a statist international bureaucracy should be an easy target.
Andrew Quinlan, President of the Center for Freedom and Prosperity and Coordinator for the Coalition for Tax Competition, explained, “OECD bureaucrats have lived a fat and happy life using the US taxpayer dime. They have long received tax-free salaries, supplied in large part from US taxpayers, while jet-setting around the world and advocating for higher taxes. It’s time for the gravy train to end.”
Dan Mitchell, Senior Fellow at the Cato Institute, added, “The OECD is in love with higher taxes. Sending US taxpayer dollars to the Paris-based tax bureaucrats at the OECD has a clear negative multiplier, to borrow the language of Keynesians. Not only is it money better kept in the US economy in the first place, but it’s coming back as advocacy for more taxes, more spending, and more government.”
The Center for Freedom and Prosperity, which coordinates the Coalition for Tax Competition, has previously released a video highlighting Six key reasons to halt US funding of the OECD, including: its 1) promotion of a value-added tax in the US, 2) pursuit of an anti-tax competition agenda seeking to establish a global tax cartel, 3) endorsement of failed Keynesian spending in the US, 4) advocation of unpopular Obamacare policies, 5) call for more US spending on everything from welfare to foreign aid, and 6) support of global taxation on carbon emissions and financial transactions. CF&P has also been meeting with many Congressional offices to discuss cutting spending to the OECD.
http://www.youtube.com/watch?v=oVr8R41nZJU
Full Text of Letter and List of Signers:
Dear U. S. Senators and U. S. Representatives:
As part of an overall effort to help control the size of government, we believe American taxpayers should not subsidize the Organization for Economic Cooperation and Development (OECD).
Even if we had a balanced budget, OECD funding would be contrary to US interests. The Paris-based bureaucracy increasingly promotes a left-wing economic agenda, despite the fact that US taxpayers contribute nearly one fourth of their annual budget. We have long been disturbed that the OECD has a “harmful tax competition” project that seeks to hinder the flow of jobs and capital to low-tax nations. And since the United States is the world’s biggest beneficiary of international capital flows and tax competition, it is the height of folly for the American taxpayer to subsidize this effort.
We’ve also noticed a disturbing tendency for the OECD to endorse big government positions on domestic policy issues. The OECD has supported so-called “stimulus” spending, advocated for cap-and-trade regulation, and suggested a value-added tax in the US, just to name a few examples. In effect, US taxpayers are subsidizing further advocacy for bigger government and higher taxes – positions against their own interests.
We look forward to working with you to bring spending under control and to ensure that US tax dollars are allocated in ways that advance America’s interests above all else.
Sincerely,
Andrew F. Quinlan ~ President, Center for Freedom and Prosperity Foundation
Grover Norquist ~ President, Americans for Tax Reform
Stephen J. Entin ~ President, Institute for Research on the Economics of Taxation
Pete Sepp ~ Executive Vice President, National Taxpayers Union
Phil Kerpen ~ Vice President for Policy, Americans for Prosperity
Tom Schatz ~ President, Council for Citizens Against Government Waste
Jim Martin ~ President, 60 Plus Association
John Berlau ~ Director, Ctr. for Investors and Entrepreneurs, Competitive Enterprise Institute
Nicole Neily ~ Executive Director, Independent Women’s Voice
Eli Lehrer ~ National Director and Vice President, The Heartland Institute
Bob Bauman ~ Legal Counsel, The Sovereign Society
Terrence Scanlon ~ President, Capital Research Center
J. Bradley Jansen ~ Director, Center for Financial Privacy and Human Rights
Lew Uhler ~ President, National Tax Limitation Committee
Wayne Brough ~ Chief Economist and Vice President of Research, FreedomWorks
Karen Kerrigan ~ President & CEO, Small Business & Entrepreneurship Council
For additional comments:
Andrew Quinlan can be reached at 202-285-0244, andy@freedomandprosperity.org
Dan Mitchell can be reached at 202-218-4615, dmitchell@cato.org
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