Summary of The Economics of Corporate and Business Tax Reform

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The Economics of Corporate and Business Tax Reform summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Analytical
  • Well Structured
  • Overview

Recommendation

Corporate tax reform is a hot topic in today’s US political environment. Professor Dhammika Dharmapala looks at how America’s corporate tax structure has led to multiple anomalies, such as the practice of firms keeping earnings offshore and relocating their headquarters abroad for tax reasons. Dharmapala’s analysis looks purely at the economic aspects of corporate taxes, omitting the more controversial political facets, but it provides a useful framework for reform. getAbstract believes policy makers and business executives would benefit from this informative report.

About the Author

Dhammika Dharmapala is a law professor at the University of Chicago.

 

Summary

Business tax reform is a major issue in the United States, which has a higher nominal corporate tax rate than other nations. It’s also the only top economy that continues to tax its US-based multinationals on their global earnings.

Thus, the US tax structure encourages several inefficient corporate behaviors. For instance, an enterprise is more likely to favor a location for business investment in which its post-tax return is higher, even if it could garner a better pre-tax return elsewhere. Research shows that for every one percentage point reduction in its tax rate, a nation gains 3.3% more in foreign direct...


More on this topic

Customers who read this summary also read

The Impact of US Tax Reform on Corporate Strategy and M&A
8
U.S. Corporations' Repatriation of Offshore Profits
8
Game-Changers and Whistle-Blowers
9
The Tax Cuts and Jobs Act
8
The Conservative Case for Carbon Dividends
10
Curbing Corporate Debt Bias
8

Related Channels

Comment on this summary