Donna Christian-Christensen is among 26 signatories to a letter to the United States Department of Treasury expressing concerns about the OECD harmful tax initiative. Within one year, if these harmful tax practices are not eliminated, sanctions are to be issued. The practices in question are said to be the facilitation of foreign owned entities to do business in these locations, no or nominal tax on relevant income of these entities, lack of information exchange and lack of transparency. However, Delegate Christian-Christensen, Delegate Eleanor Holmes Norton and 24 other Representatives, contend that the initiative threatens to undermine the fragile economies of some of the U.S's closest neighbours and allies, as well as the U.S. Virgin Islands.
Workers benefit from increased job opportunities and higher wages.
Governments also benefit because, even at low rates of tax, there are both direct and indirect increases in revenue. These are funds that are critically needed to provide education, health care and other social services. The OECD should not be encouraged to use a high-handed approach and to act in bad faith by ignoring the principles of transparency and fairness in this matter. They are calling on Treasury Secretary O'Neill to take a close look at this issue and reject this misguided initiative. In doing, we will be protecting our own interests and also protecting the interests of less fortunate nations around the world.