Market leading insight for tax experts
View online issue

US congress urged to ‘defend interests from BEPS tax grab’

printer Mail

The US-based Center for Freedom and Prosperity (CF&P), joined by representatives from 20 other free market and taxpayer advocacy organisations, sent an open letter warning to the US Congress about the ‘dangers posed to US interests and the global economy’ by the work done on the OECD’s BEPS project. The coalition of organisations has pressed Congress to take an active role in the discussion over international corporate tax policy. Highlighting what it calls ‘the long history of the OECD in supporting onerous tax burdens to fund big governments’, the letter contends that the true goal of the BEPS project is to undermine tax competition and pave the way for higher taxes across the globe.

CF&P president Andrew Quinlan said: ‘The OECD advances only the interests of global tax collectors, making its work on BEPS particularly dangerous. No one is speaking up for US businesses and taxpayers, which is why Congress must get involved.’ CF&P chairman Dan Mitchell added: ‘Washington bizarrely sends about $100m in taxpayer dollars to Paris every year to subsidize a bureaucracy that consistently seeks to impose higher tax burdens throughout the world. The least they can do is make sure that money isn’t being used to fund a tax grab aimed primarily at US companies.’

Pete Sepp, National Taxpayers Union president, stated the OECD’s recommendations for US policymakers ‘would already cost American taxpayers an extra $68bn a year’, while Grover Norquist, the president of Americans for Tax Reform said: ‘Maybe European governments should make themselves attractive targets for capital rather than put tax bulls-eyes on US companies.’