OECD’S ‘GLOBAL TAX CARTEL’ – WORSE THAN IT SOUNDS
Last year, the Morrison government signed Australia up to an OECD-led agreement creating an international tax cartel.
Labor now has the job of selling the “landmark reforms” to the Australian people and has released a ‘Consultation Paper’ calling for public feedback by 2 September.
The sales pitch is “taxing multinationals” but be warned, the OECD plan comes with a raft of dangerous fine print. At a minimum, it involves rewriting nearly every aspect of Australia’s tax laws to fit the new rules.
OECD says its ‘Two Pillar Model Rules’ provide governments with a “PRECISE TEMPLATE” for legislating its “solution”.
Most of the focus is on the headline-grabbing new minimum tax rate of 15 percent that throttles competition between countries and makes it far easier for governments to increase the tax burden on ALL businesses and, eventually, individuals.
More insidiously, the scheme shifts enormous power over to the OECD Secretariat, turning it into a kind of global tax policeman.
There’s a word for this kind of thing.
It’s called ‘price-fixing’.
When businesses do it, politicians jump up and down and scream blue murder about ‘collusion’.
Well the OECD’s “two pillar solution” is no different. It bears all the hallmarks of a ‘global tax cartel’.
Worse, it provides a backdoor through which the powers of parliament will be further stripped away.
As Thomas Duesterberg wrote:
“It transfers significant national sovereignty over taxation, key to overall economic policy, to some yet-to-be-defined international regime under the guidance of the OECD… “
“Ceding corporate-taxation authority to an undefined international authority that will inevitably be controlled by an unelected technocratic elite would erode democratic principles even further.”
“It moves us closer to an EU model of governance.”
It would only be a matter of time before the 15 percent tax rate was increased (Janet Yellen is already talking about it) and, ultimately, extended to individuals.
Many well-meaning people love the new tax plan, believe it will stop tax evasion and fund much-needed social programs.
The fallacy being that governments would redistribute the monies to the masses.
Don’t count on it.
They’ll spend it how they always do, on pointless, self-serving “sustainability” projects, renewables’ subsidies and more ‘woke’ behaviour change programs.
If governments really cared about ending multinational tax evasion, there are multiple ways they could do so.
Ways that don’t involve ceding sovereignty or disempowering parliament.
OECD’s plan, or as Albanese likes to call it, “Labor’s MNE Tax Plan”, is a very, very bad idea for our freedom and democracy.
The government must withdraw from it immediately.
Say “no” to ALL cartels and ANY global agreement that interfere with Australia’s sovereign right to make its own tax laws.