Coalition For Tax Competition Urges US Government To Cut OECD Funding

by Mike Godfrey, Tax-News.com, Washington

28 October 2004

In a letter sent to Commerce, State and Justice Appropriations Subcommittee chairmen, Senator Judd Gregg (R-New Hampshire) and Congressman Frank Wolf (R-Virginia) earlier this month, the Coalition for Tax Competition, which comprises more than 30 US free market groups, called on the US government to withdraw its financial support of the Organisation for Economic Cooperation and Development (OECD) if the body persists in promoting policies which are in opposition to America's economic interests.

The letter, sent last week, argued that:

"Federal spending is too high and should be reduced. 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)."

It went on to add:

"Even if we had a balanced budget, OECD funding would deserve scrutiny. The Paris-based bureaucracy increasingly promotes economic policies that are contrary to America's interests. We are particularly 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 certainly seems ill advised for the American taxpayer to finance this effort."

"Reductions in OECD funding also could be augmented by restrictions that withhold funds until and unless anti-US policies are suspended. Simply stated, if international bureaucracies want to pursue interventionist policies, they should not expect American taxpayers to pick up the tab."

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