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.
President, Americans for Tax Reform (United States)
Secretary General, World Taxpayers Associations (Global)
Brent Wm. Gardner
Chief Government Affairs Officer, Americans for Prosperity (United States)
Executive Director, Asociación Argentina de Contribuyentes (Argentina)
General Coordinator, Association for Liberal Thinking (Turkey)
Director, Austrian Economics Center (Austria)
President, BETA Ukraine (Ukraine)
Editor-in-Chief, Brussels Report (Belgium)
President, Canada Strong and Free Network (Canada)
President & CEO, Canadian Taxpayers Federation (Canada)
General Manager, Cedice Libertad (Venezuela)
Chairman, Center for Freedom and Prosperity (United States)
Executive Director, Center for Latin America, Atlas Network (Mexico)
Director, Center for Public Policies and Economic Analyses (Bosnia & Herzegovina)
Founder, Center for Capitalism (Poland)
President, CitizenGO (Spain)
President/Executive Director, Citizens for Limited Taxation (United States)
Cofounder, Ciudadano Austral Foundation (Chile)
Vice President, Civil Development Forum (Poland)
Partner, Dasanayaka Associates (Sri Lanka)
Secretary General, Democratic Youth Committee of Europe (Italy)
Executive Director, Ecuadorian Institute of Political Economy (Ecuador)
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)
Director, FREE Argentina (Argentina)
Director Ejecutivo, Free Fundación (Venezuela)
Director, Free Market Foundation (Hungary)
Deputy Director, Free Market Foundation South Africa (South Africa)
Executive Director, Fundación Eleutéra (Honduras)
President, Fundación FREE (Uruguay)
President, Fundación Internacional Bases (Argentina)
Secretary-General, Fundación para el Avance de la Libertad (Spain)
Chairman, Global Communication Network (Montenegro)
Director, Hayek Institute (Austria)
Legislative Director, Howard Jarvis Taxpayers Association (United States)
President, India Tax Payer (India)
Executive Director, Institute for Market Economics (Bulgaria)
Professor, University of Sofia (Bulgaria)
Chairman, Institute of Nations (Armenia)
Maria Clara Escobar Pelaez
Executive Director, Instituto de Ciencia Polvetica (Colombia)
Executive Director, Instituto de Libre Empresa (Peru)
CEO, Instituto Fernando de la Mora (Paraguay)
President, International Freedom Educational Foundation (United States)
Nicolas Lecaussin Director, IREF (France)
President, Japanese for Tax Reform (Japan)
Executive Director, KEFiM – Markos Dragoumis (Greece)
Executive Director, Krieble Foundation (United States)
Director, Liberales Institut (Switzerland)
Executive Director, Libertank (Colombia)
CEO, LIMS (Lebanon)
Executive Manager, Lipa, Croatian Taxpayers Association (Croatia)
Head, Mackenzie Center for Economic Freedom (Brazil)
Daniele Capezzone Cofounder, Mercatus (Italy)
Bienvenido Oplas Jr.
President, Minimal Government Thinkers (Philippines)
President, National Taxpayers Union (United States)
Executive Director, New Zealand Taxpayers’ Union (New Zealand)
Co-Founder, Osservatore Repubblicano (Italy)
President, Pacific Alliance Institute (Japan)
Honorary Professor, Paris-Dauphine University (France)
Secretary General, Unión de Contribuyentes (Spain)
Executive Director, Property Rights Alliance (United States)
Chairman, Samtök Skattgreiðenda (Iceland)
President, Strategic Coalitions & Initiatives LLC (United States)
Professor, Sofia University (Bulgaria)
Chairman, Svensk Tidskrift (Sweden)
Chief Executive, Taxpayers’ Alliance (United Kingdom)
President, Taxpayers Association of Bharat (India)
President, Taxpayers Protection Alliance (United States)
Chairman, The Capitalist League (United States)
Giuseppe Sabella Director, Think-in (Italy)
CEO, Ukrainian Economic Freedoms Foundation (Ukraine)
President, American Business Defense Council (United States)
Professor of Economics, Universidad Francisco Marroquin (United States)
President and CEO, Verissimo (United States)
CEO, Warsaw Enterprise Institute (Poland)