Unfortunately, the OECD is pursuing an initiative that will make it more difficult to enact market-based tax policies. This assault on tax competition, financial privacy, and fiscal sovereignty is deeply flawed.
Tax competition is a liberalizing force in the world economy.
It restrains the growth of government and leads to lower tax rates. Most important, however, the OECD initiative is contrary to America's national interests. As a low-tax nation, we have little to gain by being part of a global tax cartel. Indeed, considering our favorable tax and privacy laws for foreign investors, it is clear that we could suffer a serious loss of capital if the OECD succeeds in rewriting the rules of international commerce and taxation. I urge you to withdraw U.S. support for this anti-competitive proposal.