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Ukrainian Taxpayer Group Celebrates Decade of Progress
Few nations in the world have suffered as much oppression at the hands of
others than Ukraine, which is all the more reason why its proud people recently
had reason to celebrate their victories for limited government. In late November,
several hundred members of the Ukrainian Taxpayers Association (UTA) gathered
in the capital of Kiev to mark their 10th anniversary.
UTA has 6,753 corporate and individual members from more than 25 regions
and 257 local associations. The group's mission includes defending taxpayers
from the arbitrary tax administration, guiding taxpayers through complicated
tax laws, educating taxpayers through weekly seminars, and providing arbitration
work and advice in civil courts.
Ukraine is one of several former Soviet-bloc entities to join the flat tax
revolution, having replaced its steeply progressive system with a simple,
less burdensome, single-rate alternative in 2004. Most countries that have
implemented this policy have enjoyed increased foreign direct investment,
steady economic growth, and a less arbitrary system of tax collection.
The UTA event drew the participation of public officials, including the
Minister of Justice, President, and Prime Minister of Ukraine, the Mayor
of Kiev, and the Head of the Tax Administration. Taxpayers even came from
out of the country to attend the celebration, arriving from Germany, Poland,
Russia, and Sweden, including the Taxpayers Associations of Europe's Michael
Jaeger and World Taxpayers Association (WTA) Secretary General Bjorn Tarras-Wahlberg.
WTA is a united front for lower taxes, less waste, accountable government
and taxpayers rights all over the globe. The consortium was founded in 1988,
with the energetic participation and collaboration of NTU.
Jaeger, Tarras-Wahlberg, and UTA President Mykola Onishchuk organized a
press conference prior to the event, which was attended by journalists from
several TV and radio stations.
"We are proud that we
are the members of a strong front for lower taxes, less government waste,
accountable government and taxpayers' rights all over
the world," Onishchuk said.
The festival
began at the Ice Palace, where UTA members were greeted with a large poster
of the association's symbol, an ant carrying a heavy coin.
Tarras-Wahlberg gave a congratulatory speech and brought greetings from all
65 members associations of the WTA, and brought as a gift an antique framed
map of Ukraine. 
The anniversary celebration also featured popular musical entertainment,
such as a violin concert and the 2008 Eurovision Contest runner-up winner
Ani Lorak. The hosts of the 2005 Eurovision Contest in Kiev, Masha Efrosinina
and DJ Pasha emceed the entire event.
UTA is a potential host of a future World Taxpayers Conference, a biennial
event for WTA members in which participants gather to share strategies and
tactics on behalf of limited government.
"We congratulate Ukrainian
Taxpayers Association and wish them all the best for the future," Tarras-Wahlberg
said. "We hope their successes inspire other
taxpayer activists in every corner of the globe.
Russians
Leery of Tax Amnesty
The
Russian Taxpayers Association reports that Russia's tax amnesty
is underway, but that it is failing to meet expectations for
unanticipated reasons. The amnesty program applies to individuals
who failed to properly declare income between the years 2000
and 2005. Under the program, individuals can declare the income,
pay Russia's 13% flat tax, and avoid prosecution. However, Russia
has raised only $113 million in back taxes instead of the expected
$5 to $8 billion. According to the Taxpayers Association, "The
reason for the tax amnesty's failure is quite obvious. People
do not trust the government's promise not to prosecute the previous
years' tax deadbeats who choose to pay back taxes. Also, there
are no guarantees that those pardoned for tax evasion will not
be accused of other law violations like fraud, embezzlement,
etc." Contact Yevgeny Volk for
additional information.
Britons
Express Desire for Lower Taxes
The
TaxPayers' Alliance (Britain)
recently released a report on a YouGov poll revealing citizen
pessimism and discontent over taxes and government spending.
According to the poll:
- Two-thirds
believe that the Government spends too much and therefore taxes
were too high
- A
majority believes the government wastes 20% of what it spends
- Two-thirds
believe extra funds for public services (health and education)
were misspent
- Two-thirds
believe politicians lack the expertise needed for public service
Almost
80% of those polled believe that taxes will increase in the future.
Perhaps these facts provide insight into why public opinion has
turned against London hosting the 2012 Olympics. For more information
visit The
TaxPayers' Alliance.
A Tax Reform Plan for Thailand
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WTA Secretary General Bjorn Tarras-Wahlberg (center) meets with His Excellency Suparut Kawatkul of Thailand's Ministry of Finance (left) and Swedish Ambassador Lennart Linner (right). |
Kawatkul
(left), Tarras-Wahlberg (center), and Linner discuss replacing Thailand's
income taxes with consumption taxes. |
WTA
Secretary General and Founder Bjorn Tarras-Wahlberg has been
busy spreading the word to leaders in the Far
East about the benefits of replacing income taxes with consumption taxes.
Here Mr. Tarras-Wahlberg is pictured with His Excellency Suparut Kawatkul of
Thailand's Ministry of Finance, along with Swedish Ambassador Lennart
Linner, discussing the potential for economic growth that is often
associated with properly designed tax reform. Mr. Tarras-Wahlberg, who is
originally from Sweden, discussed his country's positive experiences with
reducing income tax rates, and suggested that as little as a 2
percentage-point increase in Thailand's current consumption tax could
replace the country's income tax entirely with no net loss in revenue
(spending reductions could effect a replacement without an offsetting tax
increase). WTA is a partner with the Asian Pacific Taxpayers Union, whose
members include Japan, Australia, and China.
The
2006 Asia-Pacific Taxpayers Union Meeting
The
second meeting of Asia-Pacific Taxpayers Union (APTU), took place
in Seoul, Korea, on 12-15 October 2006. The Korean Taxpayers
Association hosted the meeting. During the three-day conference,
APTU members discussed replacing income taxes with consumption
taxes (such as a value-added tax), as well as marketing and member
recruitment.
The 2006 World Taxpayers Conference
World
Taxpayers Conference 2006 took place in Vienna, Austria, 29 June
- 2 July in cooperation with the meeting of the European Resource
Bank -- a
consortium of free market think tanks and research centers.
Two hundred fifty people and leaders from 25 taxpayers
associations from all over the world met during three days. The
World Taxpayers Associations grew from 50 to 58 member associations
as eight organizations from Azerbaijan, Australia, Brazil, Georgia,
Japan, Korea, and two from the United States became WTA members.
The Russian Taxpayers Association was reorganized. The next World
Taxpayers Conference will take place in 2008.
The 2005 Asia-Pacific Taxpayers Union Meeting

The first APTU
meeting (2005) |

Participants attend the first
APTU meeting in Beijing
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On 19 October
2005, ten taxpayers associations from seven Asian nations came
together in Beijing and established the Asia-Pacific Taxpayers Union (APTU).
The
seven countries are Australia, China, Japan, Kazakhstan, Korea,
Kyrgyzstan, and the Philippines. Mr. Peter McDonald, Director of the Tax
Justice Association
in Australia, was elected Chairman, and Mr. Fengjiang Liu from
the Taxation Branch of the Beijing International Taxation Research Society
was elected
Secretary General.
The 2005 Meeting
of the International Taxation Research Society
Participants
meet in Beijing. |
In April 2005, 39 tax groups in China joined under the leadership of the Beijing International Taxation Research Society and the Inner Mongolian group. Professors, scholars, as well as Mr. Peter McDonald, Director of The Tax Justice Association in Australia, and Bjorn Tarras-Wahlberg from the World Taxpayers Associations, were keynote speakers at this historic conference for the development of taxpayer associations in China. The three-day conference took place at the Education Center of the Beijing Tax Administration.
The leader behind this development is Mr. Fengjiang Liu, Vice Chairman of the Taxation Branch of the Beijing International Taxation Research Society. He is a former Chinese MIG pilot and previous head of a local branch of the tax administration. Mr. Sun is the Chairman of the Beijing group, which has 120.000 members.
The 2004 World Taxpayers Conference
Brisbane, Australia
was the site of the World Taxpayers & Taxpayers Australia Conference.
The November 2004 event was hosted by Peter McDonald, at that
time the National Director of Taxpayers Australia. Taxpayers
Australia is the oldest of all taxpayer
associations; it was founded in 1919.
The 2003 World Taxpayers Conference
St. Petersburg, Russia hosted the 2003 World Taxpayers Conference. One hundred sixty representatives from taxpayer associations from all over the globe came together to listen to the remarkable results of the introduction of the lowest national income tax in the world, the Russian flat income tax of 13% (created in 2001). In its first year, tax revenues increased by 45% and by 40% in 2002.
Individual
welfare accounts were discussed, which is a system ensuring economic efficiency
and allowing a considerable reduction of
the total tax pressure, while maintaining each citizen’s well being. In
addition, Robert Gidehag and Bjorn Tarras-Wahlberg published
a book on the flat income tax in Russian and in English. Another topic
was taxpayer
association networking and workshops about recruiting members
(direct mail, telemarketing, face-to-face fundraising, e-mails and publications).
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A
unique picture of the leaders of taxpayers associations across the globe
at the World Taxpayers Conference in St. Petersburg, Russia in September
2003. |
Rolf von Hohenhau speaks at the 2003 WTA Conference |
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Ms.
Akimova from the Ministry of Taxation in Moscow was quite impressed by
Mr. Laar's enthusiastic speech. |
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Public Education Event
Paris, Maison de la Chemie, 28 Rue St. Dominique (7e), Questioning
of new members of Parliament. Host: French Taxpayers Association,
2 Oct. 2002.
The
2002 World Taxpayers Conference
Bratislava, Forum Hotel, International Taxpayers Conference, Host: Slovak Taxpayers Association, 13- 15 Sept. 2002.
Panel Presentations
Almaty,
Kazakhstan, International workshop on improving the protection
of taxpayer rights and how to develop taxpayers associations.
Host: Kazakhstan Tax Standard Formation Fund, 22-24 Aug. 2002.
The 2000 World Taxpayers Conference
Tallin, Estonia was the site of the 2000 World Taxpayers Conference. On 30 June, association leaders had the opportunity to hear from Estonian Prime minister Mart Laar. His speech on Estonia's flat income tax was strong and encouraging.
Laar said that the flat tax is a wonderful thing since "it creates an incentive to find ways to increase your income, without forcing one to give too much consideration on how much of your hard-earned money that will be siphoned off to be redistributed to lesser earners in case you should move the next tax bracket." He
pointed out that Russia is following the Estonian example and adopting a
flat income tax as well.
Mr. Bjorn Tarras-Wahlberg thanked Laar for his fine speech and encouraged the members of World Taxpayers Associations to also follow the Estonia's example.
Meeting
Europe's Pro-Taxpayer Leaders
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Meeting Lady Margaret Thatcher |
Meeting Estonian Prime Minister Mart Laar |
Remarks at the Founding of the World Taxpayers Association
Opening speech by Mr. Bjorn Tarras-Wahlberg at the establishment of World Taxpayers Associations at the Foreign Press Club in Washington D.C. 29 September 1988
"The Taxpayers Movement has grown out of the desire of citizens to protect themselves from the increasing tax claims of the state." This
is the wording in the statutes for WTA. And, I would like to use this as
a basis for the speech, in which I will try to explain why there is need
for co-operation over the borders and above the seas between different taxpayers
associations.
The Associations, meeting here in Washington, do all have separate backgrounds and different experience. But all countries have had a constantly increasing taxation burden.
Looking upon the development during the last decades it will become evident that all the countries have experienced a tightening up of the total tax withdrawal. But the rate of growth has been very divergent. Worst it has been in Sweden, where we had a sharpening of taxes from 25,5% in 1970 to 50% in 1985 and to 56% in 1990 (and 52% in 1999). But also the taxpayers in Denmark, Finland, Belgium and France belong to those, who have met a similar development.
Learning and co-operation
Let me point out some other advantages with an increased cooperation between the Taxpayers Associations:
1. Co-operation gives strength. But, we will never become stronger than the power by our individual associations in each country. Thus, the associations in each separate country must try to do its best and grow in size and influence.
What we all have in common is the fact that we base the Associations on membership -- either from private persons or enterprises or even both. To have many members is important and at the same time hard work. It is important because it brings in revenues and simultaneously influence and penetration. But it is hard work and often expensive to get new members as well as to keep the number of members at a high level.
We could simply learn from each other about different techniques for member recruitment. In the Swedish Association we have been taught by Finland to contract firms for telemarketing, which we now successfully are applying, but on the other hand -- and with the experience we acquired from the start in 1921 -- we have assisted the Finnish Taxpayers Associations as well as the German Association in their start in the 1940's. These associations are today great and successful.
2. In Europe we could also learn from the fiscal political experience in the USA, to mention a clear example, the positive effects of the two fiscal reforms of 1981 and 1986. And we could also learn of new techniques of lobbying and public opinion influence from the Americans, who have been working in this field with great success.
People in low tax countries could learn from the experience of countries with high taxes, not to mention Sweden with the highest taxes in the western world.
During the period 1870 to 1970 Sweden, next to Japan, benefited by the most rapid welfare increase in the world. Meanwhile our fiscal pressure was not notably higher than in other countries.
However, since 1970 we have the lowest place of the 13 most important industrialized countries and ever since we have the highest fiscal pressure.
Taxation service over the boarder
3. We can also give our mutual members legal help in tax matters. Wherever the Associations give their members this kind of service it could perhaps be extended when members travel across the borders. Since a couple of years the Scandinavian Associations have been cooperating closely.
For example, more and more Swedes are working in Norway. When a problem arises about where the tax should be paid etc. our members can call the office of the Norwegian Association to get help. And, since a long time many Finnish people are working in Sweden. Thus, those who are members of the Finnish Association have a possibility to get assistance from the tax lawyers of the Swedish Association.
4. We can also help each other to a greater amount of knowledge about taxation systems in the different countries. The presence of an international organization would facilitate this work and at the same time deepen the knowledge about the taxes in the world for all of us.
5. Finally, we ought to support the establishing of new taxpayers associations in the countries, where these are not yet found.
Dear listeners,
the
world is shrinking more and more each year through improved means of communication.
It is now
time for the Taxpayers Associations in each country to join together; supporting
each other in the important task to work towards lowered taxes and greater
individual freedom for citizens in our different countries. Therefore, today,
Friday September 29, 1988, let us now take the historical step into World
Taxpayers Associations. I thank you for the opportunity to speak.
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