The Organization for Economic Cooperation and Development (OECD) and Barack Obama have a nasty scheme underway — have for quite a while and it may be finally coming together if Obama uses his pen and his phone and bypasses Congress. In 2011, Forbes writer Daniel J. Mitchell (CATO Institute) was attending an OECD meeting in Bermuda. He wrote a post that was subtly hysterical due to the urgent nature of getting his information out. Before getting up-to-date on what’s happening today, look at this warning from Mitchell (2011): (also see a video below by him, very easy to understand and important – he says the OECD is behind the push in the U.S. for a Value Added Tax (VAT) and a tax system similar to that of France)
Bolstered by support from the Obama Administration, the OECD now is taking its campaign to the next level. At its Global Tax Forum in Bermuda, which ends later today, the bureaucrats unveiled a new scheme that effectively would result in the creation of something akin to a World Tax Organization.
The vehicle for this effort is a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. This may sound dry and technical, but the OECD wants all nations to participate in this pact, which has existed for a couple of decades but was radically expanded last year to give high-tax governments sweeping new powers to impose bad tax law on income generated in low-tax jurisdictions.
But the real smoking gun is that the OECD has put itself in charge of the “co-ordinating body” that will have enormous powers to interpret the agreement, modify the pact, and resolve disputes – thus giving itself the ability to serve as judge, jury, and executioner.
This is a profoundly dangerous development with all sorts of very troubling implications. Since I’m in Bermuda trying to destabilize this effort, I don’t have time for extensive analysis, but here’s a press release from the Center for Freedom and Prosperity and here are some of my immediate concerns. Source: Forbes
Mitchell ended with the fact that the US, the American taxpayer, is the “biggest funders of the OECD, providing nearly one-fourth of the bureaucracy’s bloated budget.”
So our tax dollars are being used by OECD bureaucrats (who receive tax-free salaries!) to dream up new ways of increasing our tax burdens. In case you need any additional reasons to despise this bureaucracy, here’s a video detailing its anti-free market activities. [Video below]
Morph to 2 years and 7 months later, Bloomberg, February 4, 2014:
Obama’s proposals would limit companies’ ability to defer U.S. taxes on some income they earn overseas, impose a minimum tax on international profits and raise taxes on profits generated from intangibles such as patents….
Once the OECD settles on rules, countries would have to adopt laws reflecting the international consensus, a step that’s much easier in parliamentary democracies and tougher to envision with a U.S. Congress in which control is split between Democrats and Republicans. The U.S. Senate has also been unable to ratify bilateral tax treaties, including an agreement with Switzerland signed in 2009. Source: Bloomberg
Remember Dan Mitchell’s 2011 warning saying the OECD is the Judge, Jury and Executioner? The Bloomberg article believes Congress is not behind this and it’s likely nothing will come of it but we know how things get done with a pen and a phone. Will Congress have a say at all?
Calling its scheme to put the final nail in the coffin for financial privacy “game changing,” the tax-funded OECD said it would require governments to collect massive amounts of sensitive personal information on individuals from banks and other financial institutions in their jurisdictions. Once gathered, the vast troves of private data would be automatically exchanged between all participating governments and dictatorships. “You collect the data, you put it in the pipe and it goes to the other party,” said OECD tax policy boss Pascal Saint-Amans, who pays no taxes on his bloated tax-funded salary.
Over 40 governments, which the Paris-based OECD misleadingly refers to as “countries,” have already committed to adopt the controversial scheme. In a “joint statement,” participating governments celebrated the plot, which they believe will help extract more revenue from the public. “Tax evasion is a global problem and requires a global solution,” said representatives from dozens of governments, including more than a few run by self-described socialists. “We therefore strongly support the development of the single global standard for automatic exchange of information between tax authorities.”…
In fact, the OECD even boasts of its collaboration on the plot with tyrannical socialist regimes famous for human rights abuses and in some cases, even mass murder. “Working with partner countries (including Argentina, Brazil, China, India, the Russian Federation and South Africa), the OECD is advancing rapidly in the development of a common model for reporting and automatic exchange of certain account information held by financial institutions, including due diligence rules, reporting formats and secure transmission methods,” the outfit explained before releasing the actual plan on February 13.
A senior OECD bureaucrat claimed that the Obama administration had also committed to “early adoption” of the new world tax plot, though experts and analysts have pointed out that the U.S. president has no lawful authority to follow through on such a pledge without approval from Congress. Source: The New American (read more here of this warning bell)
But the U.S. president does have a pen and a phone. I hope you watch the video. It’s very clear what’s going on with little attention being paid. Have you heard your Congressman talk about the OECD lately?
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