What’s the best way to generate growth and prosperity for the developing world?
Looking at the incredible economic rise of jurisdictions such as Hong Kong and Singapore, it’s easy to answer that question. Simply put in place the rule of law, accompanied by free markets and small government.
But that answer, while unquestionably accurate, would mean less power and control for politicians and bureaucrats.
So you probably won’t be surprised to learn that when politicians and bureaucrats recently met to discuss this question, they decided that development could be best achieved with a policy of higher taxes and bigger government.
I’m not joking.
Reuters has a report on a new cartel-like agreement among governments to extract more money from the economy’s productive sector. Here are some key passages from the story.
Rich and poor countries agreed on Thursday to overhaul global finance for development, unlocking money for an ambitious agenda… The United Nations announced the deal on its website… Development experts estimate that it will cost over $3 trillion each year to finance the 17 new development goals… Central to the agreement is a framework for countries to generate more domestic tax revenues in order to finance their development agenda… Under the agreement, the UN Committee of Experts on International Cooperation in Tax Matters will be strengthened, the press release said.
Though there’s not total agreement within this crooks’ cartel. There’s a fight over which international bureaucracy will have the biggest role. Should it be the Organization for Economic Cooperation and Development, which is perceived as representing the interests of revenue-hungry politicians from the developed world?
Or should it be the United Nations, which is perceived as representing the interests of revenue-hungry politicians from the developing world?
Think of this battle as being somewhat akin to the fight between various socialist sects (Mensheviks, Trotskyites, Stalinists, etc) as the Soviet Union came to power.
Bloomberg has a story on this squabble.
Responsibility for tax standards should be moved to the UN from the Organization for Economic Co-operation and Development, a group of 34 rich countries, according to a position paper endorsed by 142 civil-society groups. …Tove Maria Ryding from the European Network on Debt and Development, [said] “Our global tax decision-making system is anything but democratic, excluding more than half of the world’s nations.”
I’m tempted to laugh about the notion that there’s anything remotely democratic about either the UN or OECD. Both international organizations are filled with unelected (and tax-free) bureaucrats.
But more importantly, it’s bad news for either organization to have any power over the global economy. Both bureaucracies want to replace tax competition with tax harmonization, precisely because of a desire to enable big expansion is the size and power of governments.
This greed for more revenue already has produced some bad policies, including an incredibly risky scheme to collect and share private financial information, as well as a global pact that could be the genesis of a world tax organization.
And there are more troubling developments.
Here are some excerpts from another Bloomberg report.
Step aside, Doctors Without Borders. …A team called Tax Inspectors Without Borders will be…established next week by the United Nations and the Organization for Economic Cooperation and Development. …Tax Inspectors Without Borders would take on projects or audits either by flying in to hold workshops…or embedding themselves full time in a tax agency for several months… “There is a lot of enthusiasm from developing countries” for this initiative, said John Christensen, the U.K.-based director of the nonprofit Tax Justice Network.
Gee, what a surprise. Politicians and bureaucrats have “a lot of enthusiasm” for policies that will increase their power and money.
But at the risk of repeating myself, the more serious point to make is that bigger government in the developing world is not a recipe for economic development.
The western world became rich when government was very small. As noted above, Hong Kong and Singapore more recently became rich with small government.
But can anyone name a country that became rich with big government?
I’ve posed that question over and over again to my leftist friends and they never have a good answer.
If we want the third world to converge with rich nations, they need to follow the policies that enabled rich nations to become rich in the first place.
[…] One of the worst aspects of the proposed tax cartel is that it will make it more difficult for poor countries to use good policy to improve living standards for their […]
[…] One of the worst aspects of the proposed tax cartel is that it will make it more difficult for poor countries to use good policy to improve living standards for their […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Co-operation and Improvement (OECD) to impose enforceable minimal tax charges. The OECD is at the moment within the strategy of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Co-operation and Growth (OECD) to impose enforceable minimal tax charges. The OECD is at present within the strategy of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Cooperation and Growth (OECD) to impose enforceable minimal tax charges. The OECD is presently within the means of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Cooperation and Growth (OECD) to impose enforceable minimal tax charges. The OECD is at present within the means of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Cooperation and Improvement (OECD) to impose enforceable minimal tax charges. The OECD is presently within the technique of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new assault on tax havens and tax competitors comes after years of makes an attempt by the EU and the Group for Financial Cooperation and Improvement (OECD) to impose enforceable minimal tax charges. The OECD is presently within the means of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Cooperation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.” […]
[…] Paris-based Organization for Economic Cooperation and Development – in an effort to create a global high-tax cartel. Sort of an “OPEC for […]
[…] Ever since the bureaucrats at the Organization for Economic Cooperation and Development launched their attack on so-called harmful tax competition back in the 1990s, I’ve warned that the goal has been to create a global tax cartel. […]
[…] and disgusting that bureaucrats at the OECD (who get tax-free salaries!) are tying to create a global tax cartel for the benefit of uncompetitive […]
[…] I’m a critic of the OECD’s efforts to create a global tax cartel, I’m glad people still have some options to protect themselves. Including the CBI […]
[…] behavior as jobs and investment migrate to places with lower taxes, and that national and international tax harmonization is required to prevent that ostensibly horrible […]
[…] behavior as jobs and investment migrate to places with lower taxes, and that national and international tax harmonization is required to prevent that ostensibly horrible […]
[…] And Oxfam, to its credit, understands that confiscatory taxes will require a global tax cartel. […]
[…] written on these issues, ad nauseam, but perhaps dry analysis is only part of what’s needed to get the message […]
[…] Unfortunately, bureaucrats in the United States and Europe don’t actually seem interested in fighting money laundering. Or, to be more precise, it appears that their primary interest is to penalize places with low tax rates. […]
[…] Unfortunately, bureaucrats in the United States and Europe don’t actually seem interested in fighting money laundering. Or, to be more precise, it appears that their primary interest is to penalize places with low tax rates. […]
[…] bureaucracies and uncompetitive governments, want to create a global tax cartel (sort of an “OPEC for politicians“) in hopes of enabling higher tax […]
[…] But when I read about the UN’s efforts for gun control, global taxation, UN-imposed taxes, a world currency, the Law of the Sea Treaty, tax […]
[…] But when I read about the UN’s efforts for gun control, global taxation, UN-imposed taxes, a world currency, the Law of the Sea Treaty, tax harmonization, restrictions on […]
[…] helps to explain why politicians from high-tax governments want to eviscerate tax competition and create some sort of global tax cartel. An “OPEC for politicians” would give them more leeway to impose class-warfare tax […]
[…] he’s even more right about the dangers of “global norms” that inevitably would pressure all nations to impose equally bad levels of taxation and […]
[…] he’s even more right about the dangers of “global norms” that inevitably would pressure all nations to impose equally bad levels of taxation and […]
In case it has not been confirmed already, this phrase gives away Reuters’ role as a mouthpiece for big state intervention: “, unlocking money for an ambitious agenda . . . ” In other words, the idea is really to steal (yet more) money from its owners, which Reuters editors have actually presented as a positive. Reuters’ publications are therefore untrustworthy.
Wake Up Sheep….
U.N. Official Reveals Real Reason Behind Warming Scare
02/10/2015 06:43 PM ET
U.N. climate chief Christiana Figueres speaks during an interview at the World Economic Forum in Davos, Switzerland, on Jan. 22, 2014. AP
U.N. climate chief Christiana Figueres speaks during an interview at the World Economic Forum in Davos, Switzerland, on Jan. 22, 2014. AP View Enlarged Image
Economic Systems: The alarmists keep telling us their concern about global warming is all about man’s stewardship of the environment. But we know that’s not true. A United Nations official has now confirmed this.
At a news conference last week in Brussels, Christiana Figueres, executive secretary of U.N.’s Framework Convention on Climate Change, admitted that the goal of environmental activists is not to save the world from ecological calamity but to destroy capitalism.
“This is the first time in the history of mankind that we are setting ourselves the task of intentionally, within a defined period of time, to change the economic development model that has been reigning for at least 150 years, since the Industrial Revolution,” she said.
Referring to a new international treaty environmentalists hope will be adopted at the Paris climate change conference later this year, she added: “This is probably the most difficult task we have ever given ourselves, which is to intentionally transform the economic development model for the first time in human history.”
The only economic model in the last 150 years that has ever worked at all is capitalism. The evidence is prima facie: From a feudal order that lasted a thousand years, produced zero growth and kept workdays long and lifespans short, the countries that have embraced free-market capitalism have enjoyed a system in which output has increased 70-fold, work days have been halved and lifespans doubled.
Figueres is perhaps the perfect person for the job of transforming “the economic development model” because she’s really never seen it work. “If you look at Ms. Figueres’ Wikipedia page,” notes Cato economist Dan Mitchell: Making the world look at their right hand while they choke developed economies with their left.
Read More At Investor’s Business Daily: http://news.investors.com/ibd-editorials/021015-738779-climate-change-scare-tool-to-destroy-capitalism.htm#ixzz3RWtAYnEN
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