Center for Freedom and Prosperity
Encyclopedia
The Center for Freedom and Prosperity (or CF&P) is a lobbying organization advocating flat tax
and territorial taxation systems. The organization and its subsidiary Center for Freedom and Prosperity Foundation (a tax-exempt organization) claims to publish studies and conduct seminars analysing the benefits of jurisdictional tax competition, financial privacy and fiscal sovereignty.
The organisation's views are rejected by many European nations and many of the intranational organisations which it so often criticises, who see it as a lobbying mouthpiece for the Offshore Financial Centre
s. However, the organisation tends to be much more effective in the U.S.A. which also believes in promoting tax competition, both internally (between the 50 states) and internationally.
Flat tax
A flat tax is a tax system with a constant marginal tax rate. Typically the term flat tax is applied in the context of an individual or corporate income that will be taxed at one marginal rate...
and territorial taxation systems. The organization and its subsidiary Center for Freedom and Prosperity Foundation (a tax-exempt organization) claims to publish studies and conduct seminars analysing the benefits of jurisdictional tax competition, financial privacy and fiscal sovereignty.
Background
The stated objectives of the CTC are:- Thwarting the OECD's attempts to create a cartel of high-tax nations – arguing that tax competition should be celebrated, not persecuted, and advocating that high tax regimes should not be able to shield themselves from globalisation.
- Protecting world commerce and open trade – it asserts that discriminatory financial protectionism against low-tax nations is a bad idea in principle and should be stopped.
- Preserving the ability of sovereign jurisdictions to determine their own tax policy – they oppose high-tax nations trying to export their tax laws to other nations, in effect trying to turn them into adjunct tax collectors, and the OECD trying to dictate tax policy in low-tax jurisdictions.
- Resisting the Financial Action Task Force's (FATF) attempts to restrict financial privacy. Whilst the CTC states that it supports laws against criminals and the proceeds of crime, respect for Constitutional freedoms and civil liberties should not be abandoned. Nor, they advocate, should concerns about money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
be allowed to serve as a stalking horseStalking horseA stalking horse is a person who tests a concept with someone or mounts a challenge against them on behalf of an anonymous third party. If the idea proves viable and/or popular, the anonymous figure can then declare their interest and advance the concept with little risk of failure...
for tax collectors.
The organisation's views are rejected by many European nations and many of the intranational organisations which it so often criticises, who see it as a lobbying mouthpiece for the Offshore Financial Centre
Offshore financial centre
An offshore financial centre , though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds....
s. However, the organisation tends to be much more effective in the U.S.A. which also believes in promoting tax competition, both internally (between the 50 states) and internationally.