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Book The Optimal Taxation of Foreign Source Investment Income

Download or read book The Optimal Taxation of Foreign Source Investment Income written by Martin Feldstein and published by . This book was released on 1980 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Our paper begins with the relatively simple problem of optimal taxation as viewed by the capital-exporting ("home") country when it can assume that its actions do not alter the tax rate in the host country. Section I also shows that when foreign investment accounts for a significant fraction of production in the host country, the capital-exporting country should tax foreign source investment income more heavily than is implied by the "full taxation after deduction" rule. The important question of tax rate interdependence is developed in Section II. In the third section we replace the assumption that all foreign investment is financed by a transfer of equity capital from the home country with the more realistic description that subsidiary firms borrow in the host country. Although this raises the profitability to the home country of investment by its foreign subsidiaries, we show that this need not alter the conclusions of the previous sections. We regard the present paper as only a first step in a proper analysis of the complex issue of optimal taxation of foreign source investment income. . The static analysis of the present paper should be extended to consider investment paths in growing economics. Finally, the purely nationalistic optimality criterion could be generalized to give some weight to the real income of the rest of the world.

Book Taxation of Foreign Investment Income

Download or read book Taxation of Foreign Investment Income written by Peggy B. Musgrave and published by . This book was released on 1963 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book The Optimal Taxation of Interest Income

Download or read book The Optimal Taxation of Interest Income written by Jacqueline C. Hess-Ingrassia and published by Cornell University Press. This book was released on 1995 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Domestic Tax Policy and Foreign Investment

Download or read book Domestic Tax Policy and Foreign Investment written by David G. Hartman and published by . This book was released on 1981 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment abroad has come to play a major role in the total investment undertaken by U.S. firms. Despite this development, very little attention has been paid to the impacts of domestic tax policy on foreign investment. One reason has been the presumption that, since changes in domestic tax rules ordinarily also apply to foreign-source income, policy changes should affect foreign and domestic investment similarly. However, the fact that the tax on foreign-source income is deferred until the income is repatriated represents a crucial difference in the treatment of foreign and domestic income. So long as the U.S. tax is deferred, the effective U.S. tax rate on foreign-source income can be shown to be irrelevant to a firm's optimal foreign reinvestment decision. Foreign investment is now largely accomplished by firms reinvesting earnings abroad, so the reinvestment decision is of primary importance. Thus, a decrease in the effective U.S. tax rate which applies to both domestic and foreign investment income can be thought of as a cut in the tax on domestic investment income, which is encouraging to domestic investment (perhaps at the expense of foreign investment), combined with a cut in the tax on foreign investment income, which has no effect on the optimal foreign reinvestment decision. Consequently, the impacts on foreign and domestic investment of an apparently neutral policy could be very different . Another reason that the response of foreign investment has been neglected in domestic policy discussions is the lack of evidence on the magnitude of that response. This paper utilizes the theory just described to confirm that foreign investment is influenced negatively and quite strongly by the after-tax rate of return to domestic investment. A further test, in which a "gross domestic rate of return" term and a "domestic tax" term are included separately, produces coefficients virtually equal in absolute value, confirming that the net domestic rate of return is the appropriate variable. The results indicate that a tax incentive which has been found to raise net domestic investment by a dollar reduces net foreign investment by at least twenty cents. This conclusion is further reinforced by results from a forward-looking (Tobin's q) mod el. While these results do not point to the primary outcome of a domestic policy change being a domestic-foreign reallocation of the capital stock, they indicate that a significant reallocation does take place. With open economy tax analysis still in its infancy, the question of how this evidence alters the usual conclusions is largely an open one.

Book US Taxation of Foreign Income

Download or read book US Taxation of Foreign Income written by Gary Clyde Hufbauer and published by Peterson Institute. This book was released on 2007 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Deferral and the Optimal Taxation of International Investment Income

Download or read book Deferral and the Optimal Taxation of International Investment Income written by Donald J. Rousslang and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years U.S. companies have been able to use new tax planning strategies to reduce the foreign taxes they pay on their foreign earnings. Since the companies usually can defer the residual U.S. tax on these earnings, one effect of the reduction in foreign taxes is to increase a preexisting tax bias in favor of foreign over domestic investment. This paper reviews the economics literature to see whether the preexisting tax bias is likely to promote global welfare. It provides only a first step in examining the welfare consequences of the new tax planning strategies, however, since the strategies do not necessarily affect all foreign tax rates uniformly.

Book Taxation in the Global Economy

Download or read book Taxation in the Global Economy written by Assaf Razin and published by University of Chicago Press. This book was released on 2008-04-15 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: The increasing globalization of economic activity is bringing an awareness of the international consequences of tax policy. The move toward the common European market in 1992 raises the important question of how inefficiencies in the various tax systems—such as self-defeating tax competition among member nations—will be addressed. As barriers to trade and investment tumble, cross-national differences in tax structures may loom larger and create incentives for relocations of capital and labor; and efficient and equitable income tax systems are becoming more difficult to administer and enforce, particularly because of the growing importance of multinational enterprises. What will be the role of tax policy in this more integrated world economy? Assaf Razin and Joel Slemrod gathered experts from two traditionally distinct specialties, taxation and international economics, to lay the groundwork for understanding these issues, which will require the attention of scholars and policymakers for years to come. Contributors describe the basic provisions of the U.S. tax code with respect to international transactions, highlighting the changes contained in the U.S. Tax Reform Act of 1986; explore the ways that tax systems influence the decisions of multinationals; examine the effect of taxation on trade patterns and capital flows; and discuss the implications of the opening world economy for the design of optimal international tax policy. The papers will prove valuable not only to scholars and students, but to government economists and international tax lawyers as well.

Book Taxing the Income from U S Corporation Investments Abroad

Download or read book Taxing the Income from U S Corporation Investments Abroad written by Oswald Harvey Brownlee and published by . This book was released on 1979 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book U S Taxation of Foreign Source Income

Download or read book U S Taxation of Foreign Source Income written by United States. Congress. Joint Committee on Internal Revenue Taxation and published by . This book was released on 1975 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Taxation of Foreign Source Income

Download or read book Taxation of Foreign Source Income written by United States. Congress. Joint Committee on Internal Revenue Taxation and published by . This book was released on 1975 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book United States Taxation of Foreign Investment Income

Download or read book United States Taxation of Foreign Investment Income written by Peggy B. Musgrave and published by . This book was released on 1969 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book U S Taxation of Foreign Source Income of Individuals and Corporations and the Domestic International Sales Corporation Provisions

Download or read book U S Taxation of Foreign Source Income of Individuals and Corporations and the Domestic International Sales Corporation Provisions written by United States. Congress. Joint Committee on Internal Revenue Taxation and published by . This book was released on 1975 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: