The Washington Times
November 8, 2004
The OECD benefits the United States
On behalf of the group that officially represents U.S. business interests to the Organization for Economic Cooperation and Development, I feel compelled to rebut Richard W. Rahn's grossly inaccurate depiction of the OECD's work on international taxation ("Halting French economic thrust," Commentary, Thursday).
Far from having been "captured" by anti-growth, high-tax forces, the OECD actually provides an indispensable vehicle for the United States, including the American business community, to influence the tax policies of other nations and protect our interests. This works to the benefit of U.S. companies, U.S. competitiveness and economic growth overall.
Consider that until recently the overseas earnings of U.S. companies were routinely subjected to taxation by the United States and foreign countries. OECD efforts, which Mr. Rahn derides as a high-tax plot, have largely put an end to such double taxation. Or consider the OECD's valuable work in extending the U.S. ban on overseas bribery, under our Foreign Corrupt Practices Act, to most of our key trading partners, thus leveling the playing field for U.S. firms.
In fact, the OECD's tax work that Mr. Rahn so fears is nothing more, nor less, than a long-overdue attempt to breach the wall of bank secrecy in certain countries. The status quo has clearly abetted cross-border criminal activities, such as money laundering by drug cartels, and the movement of money by terrorists. The OECD's efforts are meant to promote transparency of tax systems and the exchange of information in accordance with existing treaties and other agreements.
Were we to follow Mr. Rahn's prescription and withhold funding for the OECD, we would be doing a big favor for terrorists, organized crime, money launderers and others who abuse the lack of transparency in some countries' tax systems. This would be a tremendous disservice to U.S. taxpayers and the economy.
THOMAS M.T. NILES
President
United States Council
for International Business
New York
More on USCIB’s Taxation Committee
More on OECD Tax Conference (January 13-14, Washington, D.C.)
