Andreas Hellmann

Taxpayer Groups from 40 Countries Urge Rejection of Global Minimum Tax

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Posted by Andreas Hellmann on Wednesday, June 23rd, 2021, 10:58 AM PERMALINK

In partnership with the World Taxpayers Associations, Americans for Tax Reform is leading a large international coalition of 76 conservative groups and activists from 40 different nations to oppose the implementation of a global minimum corporate tax rate. The coalition released a letter today urging Congress to reject the global minimum tax proposal of at least 15 percent that the governments of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States agreed on at a Group of Seven (G7) meeting.

The coalition's message is clear – This agreement would significantly damage the valuable tax competition among countries and would cause undue harm to businesses, workers, and economies around the world. A global minimum tax would greatly curtail the force of tax competition. This competition between nations offers a critical check on the power of governments and it is vital for ensuring efficient and reasonable levels of taxation.

Grover Norquist, President of Americans for Tax Reform described President Biden’s efforts to impose a global minimum tax as follows: 

"Cartels that keep prices high hurt consumers. Creating a Tax OPEC of governments to avoid tax competition is bad for citizens and taxpayers. Competition drives out self-serving rent-seekers in business and in government. Putting a floor on the cost of government is like putting a floor on the cost of oil or wheat--bad for consumers. Why create a new OPEC jacking up the cost of government rather than oil."

You can view the full letter here or below. 

Dear Members of Congress,

We, the undersigned organizations, representing taxpayers and consumers across the globe, strongly oppose the creation of a global minimum corporate tax rate agreement by the G7 nations. This agreement would significantly damage the valuable tax competition among countries and would cause undue harm to businesses, workers, and economies around the world.

On June 5th, 2021, the governments of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States agreed at a Group of Seven (G7) meeting to institute a global minimum corporate tax rate of at least 15 percent. The official 2021 G7 Summit will occur in the United Kingdom from June 11th to 13th. Leaders from the G7 countries are expected to promote an even more comprehensive agreement on international taxation at the G20 meeting in July.

A global minimum tax would greatly curtail the force of tax competition. This competition between nations offers a critical check on the power of governments and it is vital for ensuring efficient and reasonable levels of taxation. According to the nonpartisan Tax Foundation, “Tax competition can help to keep taxes closer to their optimal level, constraining wasteful government excess.” Instituting a global minimum tax would reduce pressure on higher-tax governments, and overall corporate tax rates would rise to inefficient and confiscatory levels.

The proposed 15 percent minimum tax rate would be particularly detrimental to countries such as Ireland, Bulgaria, and Hungary that currently keep their corporate tax rates at lower, more competitive rates. A global minimum tax also threatens poorer, developing countries that need to maintain high growth rates in order to be lifted out of poverty. Cutting corporate tax rates leads to an increase in investment, productivity, and economic growth, output, and ultimately higher standards of living.

Low corporate tax rates are an important tool for developing countries to improve the lives of their citizens, and a global minimum tax rate would impair the effectiveness of that tool. It’s also important to point out that countries like China have no intention to agree on or implement such a global minimum tax and any other smart country will immediately lower its corporate tax rate and reap the benefits.

The G7s agreement on a global minimum corporate tax rate should be abandoned and should be rejected by the G20 in July. Individual countries should be able to follow their own open democratic processes to pursue the tax rules they see fit and not be forced to cede sovereignty to a group that might not act in their own interests.

International bodies should not infringe on the tax systems of sovereign countries and should be focused on facilitating tax competition, free trade, and economic prosperity for countries of all sizes. 

Grover Norquist
President, Americans for Tax Reform (United States)

Cristina Berechet
Secretary General, World Taxpayers Associations (Global)

Brent Wm. Gardner
Chief Government Affairs Officer, Americans for Prosperity (United States)

Jonas Torrico
Executive Director, Asociación Argentina de Contribuyentes (Argentina)

Ozlem Yilmaz
General Coordinator, Association for Liberal Thinking (Turkey)

Barbara Kolm
Director, Austrian Economics Center (Austria)

Julia Kril
President, BETA Ukraine (Ukraine)

Pieter Cleppe
Editor-in-Chief, Brussels Report (Belgium)

Troy Lanigan
President, Canada Strong and Free Network (Canada)

Scott Hennig
President & CEO, Canadian Taxpayers Federation (Canada)

Rocio Guijarro
General Manager, Cedice Libertad (Venezuela)

Daniel Mitchell
Chairman, Center for Freedom and Prosperity (United States)

Roberto Salinas
Executive Director, Center for Latin America, Atlas Network (Mexico)

Edo Omercevic
Director, Center for Public Policies and Economic Analyses (Bosnia & Herzegovina)

Tomasz Kolodziejczuk
Founder, Center for Capitalism (Poland)

Ignacio Arsuaga
President, CitizenGO (Spain)

Chip Ford
President/Executive Director, Citizens for Limited Taxation (United States)

Andrés Barrientos
Cofounder, Ciudadano Austral Foundation (Chile)

Marek Tatala
Vice President, Civil Development Forum (Poland)

Prasad Dasanayaka
Partner, Dasanayaka Associates (Sri Lanka)

Margherit Saltini
Secretary General, Democratic Youth Committee of Europe (Italy)

José Andrade
Executive Director, Ecuadorian Institute of Political Economy (Ecuador)

Gary Kavanagh
Director, Edmund Burke Institute (Ireland)

Mario Alvino Fantini
Editor-in-Chief, The European Conservative (Austria)

Diego Sanchez de la Cruz
CEO, Foro Regulación Inteligente (Spain)

Emilio Caviglia
Director, FREE Argentina (Argentina)

Gabriel Maldonado
Director Ejecutivo, Free Fundación (Venezuela)

Máté Hajba
Director, Free Market Foundation (Hungary)

Chris Hattingh
Deputy Director, Free Market Foundation South Africa (South Africa)

Elena Toledo
Executive Director, Fundación Eleutéra (Honduras)

Francisco Isetta
President, Fundación FREE (Uruguay)

Federico Fernandez
President, Fundación Internacional Bases (Argentina)

Juan Pina
Secretary-General, Fundación para el Avance de la Libertad (Spain)

Slobodan Franeta
Chairman, Global Communication Network (Montenegro)

Richard Zundritsch
Director, Hayek Institute (Austria)

Scott Kaufman
Legislative Director, Howard Jarvis Taxpayers Association (United States)

Shantha Kumar
President, India Tax Payer (India)

Svetla Kostadinova
Executive Director, Institute for Market Economics (Bulgaria)

Krassen Stanchev
Professor, University of Sofia (Bulgaria)

Armen Arzumanyan
Chairman, Institute of Nations (Armenia)

Maria Clara Escobar Pelaez
Executive Director, Instituto de Ciencia Polvetica (Colombia)

Jose Tapia
Executive Director, Instituto de Libre Empresa (Peru)

Federico Rabino
CEO, Instituto Fernando de la Mora (Paraguay)

Alejandro Chafuen
President, International Freedom Educational Foundation (United States)

Nicolas Lecaussin Director, IREF (France)

Masaru Uchiyama
President, Japanese for Tax Reform (Japan)

Nicos Rompapas
Executive Director, KEFiM – Markos Dragoumis (Greece)

Shari Williams
Executive Director, Krieble Foundation (United States)

Oliver Kessler
Director, Liberales Institut (Switzerland)

Camilo Guzman
Executive Director, Libertank (Colombia)

Patrick Mardini
CEO, LIMS (Lebanon)

Zoran Low
Executive Manager, Lipa, Croatian Taxpayers Association (Croatia)

Vladimir Maciel
Head, Mackenzie Center for Economic Freedom (Brazil)

Daniele Capezzone Cofounder, Mercatus (Italy)

Bienvenido Oplas Jr.
President, Minimal Government Thinkers (Philippines)

Pete Sepp
President, National Taxpayers Union (United States)

Jordan Williams
Executive Director, New Zealand Taxpayers’ Union (New Zealand)

Andrea Gabba
Co-Founder, Osservatore Repubblicano (Italy)

Yuya Watase
President, Pacific Alliance Institute (Japan)

Pascal Salin
Honorary Professor, Paris-Dauphine University (France)

Juan Pina
Secretary General, Unión de Contribuyentes (Spain)

Lorenzo Montanari
Executive Director, Property Rights Alliance (United States)

Skafti Hardarson
Chairman, Samtök Skattgreiðenda (Iceland)

Maureen Blum
President, Strategic Coalitions & Initiatives LLC (United States)

Krassen Stanchev
Professor, Sofia University (Bulgaria)

Anders Ydstedt
Chairman, Svensk Tidskrift (Sweden)

John O’Connell
Chief Executive, Taxpayers’ Alliance (United Kingdom)

Manu Guar
President, Taxpayers Association of Bharat (India)

David Williams
President, Taxpayers Protection Alliance (United States)

Ralph Benko
Chairman, The Capitalist League (United States)

Giuseppe Sabella Director, Think-in (Italy)

Mykhailo Lavrovskyi
CEO, Ukrainian Economic Freedoms Foundation (Ukraine)

Dick Patten
President, American Business Defense Council (United States)

Christopher Lingle
Professor of Economics, Universidad Francisco Marroquin (United States)

Manuel Rosales
President and CEO, Verissimo (United States)

Tomasz Wroblewski
CEO, Warsaw Enterprise Institute (Poland)

Photo Credit: HM Treasury


ATR Leads Coalition Against Global Minimum Tax

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Posted by Andreas Hellmann on Thursday, June 10th, 2021, 6:28 PM PERMALINK

In partnership with the World Taxpayers Associations, Americans for Tax Reform is leading a large international coalition to oppose the implementation of a global minimum corporate tax rate. Interested organizations can sign the coalition letter here to join the movement.

On June 5th, 2021, the governments of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States agreed at a Group of Seven (G7) meeting to institute a global minimum corporate tax rate of at least 15 percent. The official 2021 G7 Summit will occur in the United Kingdom from June 11th to 13th. Leaders from the G7 countries are expected to promote an even more comprehensive agreement on international taxation at the G20 meeting in July.

“This agreement would significantly damage the valuable tax competition among countries and would cause undue harm to businesses, workers, and economies around the world,” reads the letter. “A global minimum tax would greatly curtail the force of tax competition. This competition between nations offers a critical check on the power of governments and it is vital for ensuring efficient and reasonable levels of taxation.”

The letter also notes that the proposed global minimum tax would be especially damaging to countries such as Ireland, Bulgaria, and Hungary, which currently have lower, more competitive corporate tax rates. A global minimum tax would also be harmful to developing countries, which can use low corporate tax rates in order to encourage investment and economic growth.

The international coalition recommends that the G7’s agreement on a global minimum corporate tax rate should be abandoned and should be rejected by the G20 in July.

Sign the coalition letter here to ensure that this harmful policy is not implemented on an international level.

Photo Credit: Linus Bohman


Biden Must Push Back Against EU's Discriminatory Digital Policies

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Posted by Andreas Hellmann on Thursday, June 10th, 2021, 2:39 PM PERMALINK

Americans for Tax Reform supports the recent letter by Rep. Suzan DelBene and Rep. Darin LaHood encouraging the Biden Administration to counter unilateral digital regulations proposed by the European Union. The U.S. government must continue to protect American workers and consumers against discriminatory practices abroad.

"As you prepare for meetings with your European counterparts this month, we urge you to work with the E.U. to ensure non-discriminatory treatment for firms on both sides of the Atlantic," wrote DelBene and LaHood, Co-Chairs of the Digital Trade Caucus, in their letter to President Biden on Wednesday.

DelBene and LaHood specifically named their primary concern to be the Digital Markets Act and Digital Services Act introduced in the European Union, which would "regulate large technology firms and hit them with hefty fines for noncompliance." They noted that these pieces of legislation disproportionately target American companies and would have disastrous consequences for 19 million American workers employed by these businesses.

The members of Congress urged the Biden Administration to raise these concerns with the EU before the legislation is finalized and instead work toward an international solution that establishes fairer rules and prevents discriminatory targeting of digital companies in one or more countries.

ATR shares the concerns expressed in the letter and encourages the Biden Administration to continue pushing back against discriminatory digital policies in the European Union and other countries. Besides the Digital Markets Act and Digital Services Act, a number of countries have also established or proposed discriminatory Digital Services Taxes (DSTs), which harm American workers as well.

The Biden Administration must ensure that American jobs and businesses are allowed to thrive on a fair international playing field.

Photo Credit: June Stricker/Hanson Professional Services Inc.


ATR Calls For Stronger Response From USTR To Foreign Digital Taxes

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Posted by Andreas Hellmann on Wednesday, June 2nd, 2021, 5:41 PM PERMALINK

Americans for Tax Reform (ATR) supports the U.S. Trade Representative’s announcement regarding the implementation of tariffs against six countries as a measure to counter discriminatory Digital Services Taxes (DSTs). While tariffs are economically damaging, the U.S should not stand idly by while foreign countries take advantage of American workers and businesses.

While the ultimate goal should be lower trade barriers, USTR should not hesitate to proportionally respond to foreign efforts to take aim U.S. families and businesses.

Today, USTR announced and then immediately suspended the implementation of tariffs against Austria, India, Italy, Spain, Turkey, and the United Kingdom. The tariffs will be suspended for up to 180 days in order to provide sufficient time for multilateral negotiations to take place at the OECD. 

Digital Services Taxes discriminate against U.S. companies and have the potential to cause significant harm to the U.S. tax base. This most recent announcement by USTR followed yearlong Section 301 investigations into the six countries, originally initiated by the Trump Administration and then continued under the Biden Administration. It is crucial that the Biden Administration maintains the goal of finding a strong remedy for foreign DSTs.

Today’s announcement was an important move by USTR to ensure that negotiations at the Organization for Economic Cooperation and Development (OECD) must continue. Unfortunately, this warning about the potential for future tariffs is not strong enough to discourage the six named countries from proceeding with their unilateral DSTs before OECD negotiations conclude. 

"The U.S. is not responding forcefully enough to countries that are relentless in extracting revenue from the U.S. and have been discriminating against U.S. companies. The Biden Administration is relying on the false hope that international rules will be sufficient to end unilateral measures, but the Europeans don’t have anything to lose or to fear," said ATR President Grover Norquist. 

Furthermore, this announcement should indicate to other countries that are also pursuing DSTs, such as Canada and the Czech Republic, that they would be better served by following international negotiations instead of moving forward with their unilateral DSTs. USTR must act in order to prevent the unfair exploitation of American companies and taxpayers.

The Biden Administration and USTR must continue to hold firm and ensure that other national governments seek out multilateral solutions that do not allow for discriminatory DSTs against American companies and workers. 

Photo Credit: Gage Skidmore


Germany's Merkel Clashes With Biden And Pushes Back On Vaccine Patent Waiver

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Posted by Andreas Hellmann on Thursday, May 6th, 2021, 2:16 PM PERMALINK

The Biden administration is supporting a proposal that would suspend all intellectual property rights for COVID-19 vaccines and would authorize the sharing of United States COVID-related IP with foreign nations. The petition by South Africa and India at the World Trade Organization (WTO) to waive most of the protections in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) would undermine U.S. medical innovation, endanger American jobs and not help to fight the pandemic. 

German Chancellor Angela Merkel disagrees with President Biden saying that patent protection for COVID-19 vaccines "must remain in place". Merkel's spokesperson added: "The limiting factor for the production of vaccines are manufacturing capacities and high-quality standards, not the patents" and "the protection of intellectual property is a source of innovation and this has to remain so in the future."

Biden’s proposal of removing intellectual property rights would benefit Chinese manufacturers who have been trying to steal American innovation for over a year, which was considered a national security risk not too long ago. Instead of resulting in a rapid increase of safe and effective vaccines, this proposal will dilute the world supply with false, substandard, and counterfeit vaccines by illicit manufacturers and will not help to end the pandemic.

Photo Credit: sweejak


Hungary Attacks Biden's Global Minimum Tax Plans

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Posted by Andreas Hellmann on Tuesday, April 27th, 2021, 2:30 PM PERMALINK

The Biden administration is pushing for a global minimum tax to be set at 21% - a much higher rate than initially proposed by the OECD - to eliminate international tax competition as his administration is advocating for a massive increase of the domestic corporate income tax rate. 

The Biden administration will tax American companies at a higher rate at home and also allow foreign nations to tax U.S. companies abroad. 

Now traditionally low-tax countries like Hungary who favor tax competition, are attacking Biden's plan. The Hungarian state secretary for tax affairs Norbert Izer said:

"The concept violates states' financial sovereignty and attempts to reverse the progress of those countries that have made serious efforts to introduce lower taxes."

Hungary's nine percent corporate tax rate is the lowest in the European Union and highly competitive for businesses. 

Izer also said that "Hungary will not consent to any solution that makes life more difficult for local businesses or reduces the financial sovereignty of the Hungarian state."

The fact that the European Union who is attacking American companies with Digital Services Taxes, fines, and regulations is backing Biden's proposal is a clear sign of how bad the consequences of the Biden plan will be for American businesses and the American worker. 

Photo Credit: European People's Party


Norquist: Biden Administration Should Not Sacrifice American Interests In OECD Negotiations

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Posted by Andreas Hellmann on Monday, March 1st, 2021, 3:39 PM PERMALINK

Ahead of the G20 finance ministers meeting, U.S. Treasury Secretary Janet Yellen announced that the Biden administration is no longer insisting on the 'safe harbor' implementation of Pillar 1 of the OECD's reform of global taxation. The 'safe harbor' provision would let some companies opt out of the new global digital tax regime. Countries like Germany, France, and the European Union that strongly opposed the safe harbor provision, cheerfully welcomed the unilateral concession and announced that an agreement could be reached by the summer.

The following statement can be attributed to Grover Norquist, President of Americans for Tax Reform: 

In recent years the world has seen the growing threat of digital services taxes, which --by narrowly defining revenue thresholds and business models--are, designed to target American companies exclusively. These countries are trying to cheat on the existing international rules of taxation by unilaterally laying claim to income that would otherwise be taxed in the United States. Digital services taxes pose unprecedented dangers to tax competition, innovation, American and worldwide economic growth and represent a dramatic and likely irreversible shift for the international tax system.

The OECD process was initiated initially to end these unilateral and discriminatory taxes and prevent a trade war from escalating further. The upcoming meeting of G20 finance ministers is an excellent opportunity for the representatives from France, the UK, India, Indonesia, Canada, Germany, Italy, and other countries that either have already imposed those taxes or have DST legislation in place, to show that they are negotiating in good faith and commit to ending those discriminatory tax measures. 

The Biden administration should insist on the termination of those digital services taxes and other discriminatory measures before an agreement that is fair to the United States, American companies and workers, can be reached at the OECD. It is crucial to keep in mind that big-spending EU bureaucrats are already resorting to regulatory and antitrust tactics like the Digital Markets Act and Digital Services Act to undermine U.S. innovation and make American companies subsidize their never shrinking budgets through fines and restrict their ability to compete in the European marketplace.

Secretary Yellen and the Biden administration should not sacrifice American interests, American technological leadership, American jobs, and the American tax base by making damaging unilateral concessions during this process. 

Photo Credit: European Central Bank


Norquist Urges Biden to Oppose Digital Services Taxes

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Posted by Andreas Hellmann on Monday, January 11th, 2021, 9:21 AM PERMALINK

ATR President Grover Norquist was on CNBC’s Squawk Box to discuss the coming tax hikes when Biden is joined by a Democrat-controlled House and Senate, as well as the important fight against foreign Digital Services Taxes imposed by various different countries. 

“And the other big question we have is where will he (Biden) be on fighting against the European effort to put a Digital Services Tax on America's rather large and successful companies like Google, Facebook, and Apple that Trump people had fought it very hard. Unclear that Biden with his new 'let's get along with Europeans' will continue to try to stop those taxes targeting American companies, not European companies.”

WATCH:

DSTs pose an unprecedented danger to tax competition, innovation, and economic growth. These new taxes represent a dramatic and irreversible shift for the international tax system. While they are imposed on business revenues, DSTs will ultimately end up harming consumers and workers as the costs are passed down. This will result in fewer jobs and lower wages for businesses, especially third party suppliers and sellers that rely on tech companies for their livelihoods.


ATR Leads Coalition Opposing OECD’s Digital Taxation Proposal

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Posted by Andreas Hellmann on Wednesday, December 16th, 2020, 1:53 PM PERMALINK

Americans for Tax Reform Foundation and the Taxpayer Protection Alliance led a coalition of 23 groups that oppose any attempts by the OECD to curb international tax competition and impose a de facto global minimum tax. 

See the letter below and linked to here

 

December 16, 2020

We, the undersigned 23 organizations, representing taxpayers and consumers across the globe, strongly urge you to oppose any and all attempts to curb international tax competition and impose a de facto global minimal corporate tax through the Organization for Economic Co-operation and Development’s (OECD) “Two-Pillar Approach to Address the Tax Challenges Arising from the Digitalization of the Economy.” If enacted, these proposals, which run counter to the OECD’s own advocacy of more efficient tax systems with lower corporate tax rates, would undermine economic sovereignty of nation-states, disproportionally hurt smaller economies, and hinder opportunities for companies to innovate and invest in research and development. It would also prevent developing countries from pursuing policies to boost their economies and lift people out of poverty. In addition, as the world struggles with an international recession due to the impact of Covid-19, increasing the tax burden would significantly prevent nation-states’ abilities to enact pro-growth policies to stimulate and help rebuild their economics. Now more than ever countries need to reduce the tax burden to allow for rapid economic growth and increases in employment, whereas these proposals would do the exact opposite.

The OECD proposals mainly consist of two pillars, which, combined, are estimated to increase global tax revenue by $100 billion US annually. Pillar I covers the reallocation of taxing rights across jurisdictions, and while initially designed to cover digital companies, appears to have significantly expanded to apply to other industries. Pillar II is the specific creation of a global minimum tax on corporate profits. Combined, these two proposals would represent a significant rearrangement of the international corporate tax system, while representing a shift in funds from open economies to countries with large degrees of corruption, state intervention, and violations of human rights such as China, Russia, and Argentina, which, while not members of the OECD, are part of the broader Framework “Base Erosion and Profit Shifting” (BEPS).

 

The entire premise of this two-pillar approach is based on a fundamentally flawed and deeply misguided understanding of international tax competition which posits that tax competition forces rates below optimal levels. The reality, however, is quite the opposite. Per the nonpartisan Tax Foundation: “Tax competition can help to keep taxes closer to their optimal level, constraining wasteful government excess. Taxes will not be driven to zero through competition, as moving capital and labor abroad does come at a cost.” As such, international tax competition is vital for the continuance of a vibrant and dynamic international economy, and in ensuring efficient levels of taxation across member states. Different countries have different approaches to vitalize their economies. Tax competition for countries such as Ireland and Luxembourg is key to their economic strategy and success and applies much-needed pressure to certain high tax countries like Germany and France. This healthy process of tax competition will be minimized if not eliminated following the OECD’s approach. 

 

Despite rhetoric on how tax harmonization as envisaged under these two pillars would create a “level playing field,” this proposal would significantly hurt smaller countries, which do not have the intrinsic advantages and economies of scale that comes with larger population bases. Lower corporate tax rates are the only way in which such nations are able to overcome their competitive disadvantage caused by their smaller size and attract vital investment and compete against countries with larger capital markets. For this reason, high tax jurisdictions are primarily large countries, whereas low taxing jurisdictions are almost exclusively small and open economies. Through the imposition of such a regime, investment would be directed away from smaller countries who will therefore be placed at a considerable relative disadvantage as, in the words of The European Centre for International Political Economy, “the shift in effective taxing powers would undermine small countries’ attractiveness to international businesses and, in addition, induce domestic businesses to relocate to larger countries with the economic gravity of larger market.”

 

In addition to unfairly targeting smaller economies, these proposals would also seriously jeopardize the opportunities for developing countries to pursue a pro-growth agenda and boost their economies, thereby depriving them of the opportunity to increase economic growth and therefore improve living conditions. As the OECD recognizes, “research that compares the experiences of a wide range of developing countries finds consistently strong evidence that rapid and sustained growth is the single most important way to reduce poverty. A typical estimate from these cross-country studies is that a 10 per cent increase in a country’s average income will reduce the poverty rate by between 20 and 30 per cent.” Given that, as noted once again by the Tax Foundation, “Cutting corporate tax rates leads to increased investment, productivity gains, and, in turn, increased economic growth, output, and higher standards of living,” any policy that would hinder developing countries ability to enact such policies would effectively entrench the dominance of highly developed economies and would have significantly greater effects than any additional revenue benefits the OECD posits developing nations may achieve through attempts to limit “profit shifting” under Pillar II. It is noted that the BEPS framework includes 135 countries, and is not limited to OECD members, and as such many will be impacted by this through pressure brought upon them by the OECD. In addition, poorer OECD member states, such as Poland which has a GDP per capita three times lower than richer nation-states such as Germany, would similarly be negatively affected. Doing so is a highly immoral approach and one that would lead to significant levels of poverty that would otherwise be ameliorated. By preventing developing countries from pursuing policies to lift them out of poverty, and put them closer to parity with wealthier nations, these proposals would continue to perpetuate global inequality and further entrench the “north-south” divide.  

 

Furthermore, it is noted that ultimately corporations don’t pay tax, individuals do. Taxes will ultimately be passed down to the consumer level, harming individuals in addition to depressing economic growth further through higher costs leading to lower demand. Similarly, increases in tax rates will also hurt individuals who rely on dividends for retirement savings, with particularly devastating consequences given current global economic uncertainty. 

 

In conclusion, the foundational principles of both Pillar I and Pillar II are based on a fundamental misunderstanding of the operations of international tax competition, and the benefits it brings in ensuring optimal levels of taxation. Not only do these proposals undermine fundamental principles of democratic sovereignty and accountability in member states, through the effective transfer of taxation power from elected legislatures to unelected bureaucracies, but they would also have little impact on their stated goals of improving the global allocation of capital. More disturbingly, these proposals would also have severe negative unintended consequences harming smaller economies and preventing developing countries from boosting their economies and reducing poverty. In addition, they would seriously set back efforts to recover from the Covid-19 pandemic through stifling economic growth, an inevitable consequence of any increase in corporate taxes. As such, we strongly urge you to oppose these proposals in their entirety. 

 

Sincerely, 

David Williams

President

Taxpayers Protection Alliance

Grover Norquist

President

Americans for Tax Reform Foundation

 

Steve Pociask

President / CEO

The American Consumer Institute

 

James Taylor

President

The Heartland Institute

 

Graham Young

Executive Director

Australian Institute for Progress

 

Marko Horg

Global Coordinator

IGO Watch

 

Robert Alt

President & CEO

The Buckeye Institute

 

Andrew Langer

President

Institute for Liberty

 

Scott Hennig

President & CEO

Canadian Taxpayers Federation

 

Seton Motley

President

Less Government

 

John Hinderaker

President

Center of the American Experiment

 

Dr. Jameson Taylor

Senior Vice President

Mississippi Center for Public Policy

 

Andrew F. Quinlan, President

Dan Mitchell, Co-founder

Center for Freedom and Prosperity

 

Paata Sheshelidze

President

New Economic School - Georgia

 

Jeffrey Mazzella

President

Center for Individual Freedom

 

Paul Gessing

President

Rio Grande Foundation

 

Iain Murray

Vice President for Strategy

 Competitive Enterprise Institute

 

Svensk Tidskrift

Chairman

Svensk Tidskrift

 

 

Thomas Schatz

President

Council for Citizens Against Government Waste

 

John O'Connell,

Chair & President

World Taxpayers Associations

 

Jason Pye

Vice President of Legislative Affairs

FreedomWorks 

 

James L. Martin, Founder/Chairman

Saulius “Saul” Anuzis, President

60 Plus Association

 

Federico N. Fernández

President

Fundación Internacional Bases

 

Photo Credit: OECD


Australia Attacks American Tech Companies

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Posted by Andreas Hellmann on Wednesday, September 2nd, 2020, 9:56 AM PERMALINK

The Australian Competition and Consumer Commission (ACCC) has published draft regulation that would force American tech companies like Google and Facebook to subsidize traditional Australian media companies with a portion of their revenue. The ACCC’s mandate is to protect and promote competition, but the Draft Code would do the opposite. The Draft Code functions as a direct tax on innovative companies. 

Americans for Tax Reform and Digital Liberty have submitted comments to the ACCC. 

You can read the full submission here

Photo Credit: U.S. Pacific Fleet


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