Liz Truss Calls OECD 'Global Complacency Cartel' Over Taxes

Liz Truss has formed a Conservative Growth Group of tax-cutting Conservative MPs. Credit: Carl Court/Getty Images

Lise Truss to call The Organization for Economic Co-operation and Development (OECD) called the OECD a «global complacency cartel» and warned that its tax floor demands were «damaging the free world» in a major speech.

Ms Truss, who resigned in October after just seven weeks at Downing Street, formed the Conservative Growth Group, made up of tax-cutting Conservative MPs.

She criticized Rishi Sunak for «disastrous» high taxes and voted against his Windsor framework. designed to address issues with the Northern Ireland Protocol.

In a memorial lecture by Margaret Thatcher at the Heritage Foundation think tank in Washington on Wednesday, Ms. Truss will highlight the nearly 140 countries' global tax obligation, hosted by the G20 and the OECD.

She will argue that requiring multinational corporations to pay a minimum corporate tax prevents countries from competing with each other for corporate investment.

“Unhappy with high taxes in their countries, we now see governments seeking to negotiate high taxes all over the free world,” she is expected to say. “I'm talking about the OECD minimum tax agreement, which will prevent countries from lowering things like corporate tax and becoming more competitive.

“This is nothing but a global cartel of complacency. I'm really worried that this high tax deal — which is basically a high spending, low growth deal — will do collective damage to the free world.

1603 How the UK Compares Corporate Tax.

Ms Truss also vowed that she «cares too much about this agenda to walk away» and will vow to oppose high taxes in a new «freedom fight».

During a conservative leadership battle last August, Ms Truss's allies suggested she would consider withdrawing Britain's support for a minimum tax liability and risk a diplomatic row with Joe Biden, who first proposed the idea.

This policy has become one of the «pillars» of the OECD. an agreement to force transnational companies to pay a «fair share» of taxes.

It gives governments the right to levy a higher tax rate on corporations that pay less tax in another jurisdiction, and is designed to avoid a race to the bottom between countries on tax rates.

The measures are supported by Emmanuel Macron and Olaf Scholz and were agreed in the EU in December, despite Polish resistance. The agreement, including in the UK, will enter into force early next year.

Ms Truss will use her speech to argue that minimum tax rates prevent Western democracies from competing with «our adversaries in authoritarian regimes», including China.

«Low taxes, limited government and a private Cold War … But the fact is that our economy has not grown enough, she is expected to say.

“The symptoms are low growth, rising cost of living and declining wages. The disease of superbig government. And we have to ask ourselves: are we still ready to stand up to China and embrace the whole concept of state capitalism?”

Has Liz Truss been overthrown by the left-wing economic establishment?

Sources close to Mr. Sunak previously said he has no plans to waive the 15 percent obligation.

In his budget last month, Jeremy Hunt confirmed a corporate tax increase from 19 percent to 25 percent . percent, which took effect over the weekend.

Ms Truss promised in her September mini-budget that the planned increase would be scrapped, but MPs from her own party and concern forced her to turn around. from financial markets.