Taxpayer Groups from 40 Countries Urge Rejection of OECD's Global Minimum Tax

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Posted by Andreas Hellmann on Friday, July 2nd, 2021, 11:02 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.

Now 130 countries have signed on to the OECD's Pillar One and Pillar Two agreements to tax American multinationals and impose a global minimum tax. Roughly 65% of the companies paying the new tax are American companies. President Biden is allowing foreign nations to tax US companies to subsidize their spending or allows them to lower their taxes.

If this agreement would be enacted it would be a huge win for Communist China because shifts parts of the US tax base abroad and makes the US less competitive globally. 

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

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