GOP Senators Support Push Against New Global Taxes

by Mike Godfrey, Tax-News.com, Washington

20 July 2006

Republican leaders in the US Senate have written to President George W Bush in support of legislation which would withhold funding from multilateral organisations such as the UN and the OECD if they attempt to impose taxes at an international level.

The following Senators sent a letter to the President: Majority Leader Bill Frist; Majority Whip Mitch McConnell; Republican Policy Chair Jon Kyl; Republican Conference Chair Rick Santorum; Republican Conference Vice-Chair Kay Bailey Hutchison; National Republican Senatorial Committee Chair Elizabeth Dole; and US Senator James Inhofe.

The letter said, in part: “While global taxes are being sold as a way to generate revenue to fight diseases and for other good purposes, the United States can more effectively deal with these problems through existing agencies and in concert with other countries. The world will not be served by creating new international bureaucracies and financing them through global taxes and other co-called "innovative sources" of funding.”

“While it has been the stated position of various US officials that the U.S. Government is opposed to global taxes, we believe a presidential statement on this matter is urgently needed and should be made now. The US should make it clear to the G8 and the world that the US will actively resist and oppose this ominous trend in international affairs and foreign relations.”

Senators James Inhofe (R-OK) and Ben Nelson (D-NE) recently introduced a bi-partisan bill to stop the United Nations, the OECD and other international organizations from taxing US citizens and corporations or otherwise interfering with American tax policy.

The bill, entitled the Protection Against United Nations Taxation Act of 2006 (S. 3633) has 32 original co-sponsors and would withhold 20% of the United States subsidy to the UN, the OECD and other international organizations if they develop, advocate, endorse, promote, or publicize any proposal "concerning the imposition of a tax or fee on any United States national or any income earned in the United States in order to raise revenue for the United Nations, any foreign government, or any international organization."

At the end of June, the House of Representatives passed an appropriations bill which included similar wording. The 'Fiscal Year 2007 Foreign Operations, Export Financing And Related Programs Appropriations Bill', HR 5522, is one of a number of appropriations (spending) bills making their way through the Congress as implementation of next year's budget continues, and may not survive in its present form. The bill also applies only for the budget year in question.

Says Congressman Ron Paul, (Rep. - Texas), whose wording found its way into the bill: 'Fortunately, the House of Representatives last week passed my language in the 2007 Foreign Operations bill. But that only protects us for another year. Given the stated goals of the UN, it would be foolish to believe the idea of a global tax will go away.'

Several members of the Coalition for Tax Competition hailed the Senate bill. Andrew Quinlan, president of the Center for Freedom and Prosperity said, "Senators Inhofe and Nelson deserve our appreciation and praise for their leadership. The legislation is especially timely since the UN is pushing global tax schemes and the OECD is trying to re-energize its decade-old tax harmonization agenda."

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