Most congressional Republicans ran on a platform to reduce unneeded and counterproductive government spending. The OECD is the perfect example of government run amok. State Department bureaucrats push for more money for the OECD, in part, because they get to go to its conferences that are held in its Paris palace headquarters. (Never underestimate the value to a government bureaucrat of a great meal in a nice location.) The bill containing the OECD appropriations is now before Congress, which provides the perfect test of whether the Republicans are serious about getting rid of destructive government spending.
This week the OECD will be holding an international tax conference in Washington, where its officials will have the opportunity to lobby U.S. opinion leaders to support the OECD’s latest tax‐increase scheme. Competition is usually seen as desirable — whether it is in sports, business or tax and economic policies among governments. High‐tax countries such as France hate the idea that other countries have lower taxes — which enables lower‐tax countries to grow faster, provide more jobs at higher wages, and greatly improve the lives of their people. France and other high‐tax countries decided to use the OECD as their tool to prevent what they called “harmful tax competition.” Other things being equal, global businesses, quite understandably, are attracted to countries that have lower rather than higher taxes. In the United States, there is a similar migration of both businesses and individuals from higher‐tax states, such as New York, New Jersey and Connecticut, to lower‐tax states, such as Texas and Florida. Most economists see such competition as healthy because it serves as a brake on bloated governments that have become inefficient and corrupt.