American taxpayers are sending over $100 million per year to a bloated international bureaucracy that has morphed into a “cartel enforcer” for welfare-state politicians seeking to prevent tax competition, according to a new study.
Entitled "Cartelizing Taxes: Understanding the OECD's Campaign Against 'Harmful Tax Competition,'” the paper examines the Organization for Economic Cooperation and Development and its increasingly fierce campaign to “cartelize” global taxes. And the picture that emerges is troubling to say the least, according to experts.
Competition between nations for jobs, capital, and business has served to restrain big government and harmful policies for centuries. If one regime raised taxes too much, companies and workers could simply move to another jurisdiction.
But now, with massive U.S. taxpayer subsidies representing about a quarter of the bureaucracy’s budget, the OECD is working feverishly to end tax competition, according to the paper. And the schemes are designed to benefit high-tax welfare states determined to stem the flight of businesses and capital to more business-friendly environments.
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