As is the tradition at the OECD, instead of having a rational discussion, they try to smear and revert to name calling. Makhlouf's entire argument is based on the need to fight tax evasion. Yet as visitors to our web site have seen, Dan Mitchell's article in the December 3 edition of the Washington Times explains how to fight tax evasion while still protecting civil liberties and financial privacy. They also are restricting the ability of governments to reduce tax rates for all citizens. This is why the United States and other governments that are members of the OECD have launched a drive to eliminate harmful tax practices at a global level.
Fair competition calls for cooperation on a worldwide basis.
In particular, it means asking offshore financial centers to cease giving cover to tax evaders. The OECD countries will explain the reasons underlying their request for cooperation from the offshore financial centers. International cooperation should deter tax dodgers from ignoring the tax obligations imposed by their democratically elected governments and ensure the equal treatment of all taxpayers. Not only does greater compliance with the tax laws ensure fairness, but it also makes it possible to bring tax rates down. That, certainly, is the hope of most citizens in OECD countries.