US Think-Tanks Criticize OECD's Tax Recommendations

by Mike Godfrey, Tax-News.com, Washington

02 November 2005

On Monday, the Center for Freedom and Prosperity Foundation and several members of the Coalition for Tax Competition slammed the Organization for Economic Cooperation and Development (OECD) for the conclusions drawn in its recently published Country Survey of the United States.

In the report, the OECD observed that "some increase in revenues will be necessary" and that "a federal VAT should be considered", and further suggested that "retaining a personal income tax would allow the desired degree of progressivity of the overall tax system to be achieved".

Speaking with regard to the report, CFP president, Andrew Quinlan observed:

"Here we go again. Once again the OECD is pushing on the US their Euro-centric, anti-American economic policies. It is time for the President and Congress to re-evaluate America's annual subsidy to the OECD. In fact, we should cut our contribution greatly, or zero it out all together."

Meanwhile, Daniel Mitchell, senior fellow at the Heritage Foundation, suggested that:

"A VAT would mean bigger government and economic stagnation. The OECD is supposed to recommend policies that increase growth, not policies that increase government. It is encouraging that Congress is finally reconsidering the wisdom of having US taxpayers subsidize the Paris-based bureaucracy."

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