- Title Pages
- Dedication
- Contributors
- List of Figures
- List of Tables
- Foreword by James A. Baker III
- Preface
- Introduction: Is It Time for Fundamental Tax Reform?
-
1 Tax Reform in the Twenty-first Century - Discussion
- Discussion
-
2 Simplifying Assumptions: How Might the Politics of Consumption Tax Reform Affect (Impair) the End Product? - Discussion
- Discussion
-
3 Is Tax Reform Good for Business? Is a Pro-business Tax Policy Good for America? - Discussion
- Discussion
-
4 Taxation and Business Behavior: A Review of the Recent Literature - Discussion
- Discussion
-
5 Consumption Tax Reform: Changes in Business Equity and Housing Prices - Discussion
- Discussion
-
6 Corporation Tax Incidence: Reflections on What Is Known, Unknown, and Unknowable - Discussion
- Discussion
-
7 Corporate Taxes in the World Economy: Reforming the Taxation of Cross-border Income - Discussion
- Discussion
-
8 Evidence of Tax-Induced Individual Behavioral Responses - Discussion
- Discussion
-
9 Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation - Discussion
- Discussion
-
10 Behavioral Economics and Fundamental Tax Reform - Discussion
- Discussion
- References
- Index
Corporate Taxes in the World Economy: Reforming the Taxation of Cross-border Income
Corporate Taxes in the World Economy: Reforming the Taxation of Cross-border Income
- Chapter:
- (p.318) (p.319) 7 Corporate Taxes in the World Economy: Reforming the Taxation of Cross-border Income
- Source:
- Fundamental Tax Reform
- Author(s):
Harry Grubert
Rosanne Altshuler
- Publisher:
- The MIT Press
This chapter examines the corporate income tax in a world economy, focusing on potential reforms of the tax treatment of cross-border income flows. Specifically, it considers proposals for tax exemption of repatriated dividends (a territorial tax system) and a tax burden-neutral switch to a residence-based global system whereby foreign source income is taxed currently in the United States while corporate tax rates are reduced. It also considers destination-based and origin-based consumption taxes and suggests that the burden-neutral tax system seems to provide greater efficiency gains, particularly due to reduced incentives for income shifting across countries. Moreover, the chapter discusses the effect of increasing international capital mobility on the taxation of capital income, the tax actually borne by different types of cross-border income such as dividends and royalties, and tax reform in an open economy.
Keywords: corporate income tax, income flows, tax exemption, consumption taxes, capital mobility, capital income, dividends, royalties, tax reform, open economy
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- Title Pages
- Dedication
- Contributors
- List of Figures
- List of Tables
- Foreword by James A. Baker III
- Preface
- Introduction: Is It Time for Fundamental Tax Reform?
-
1 Tax Reform in the Twenty-first Century - Discussion
- Discussion
-
2 Simplifying Assumptions: How Might the Politics of Consumption Tax Reform Affect (Impair) the End Product? - Discussion
- Discussion
-
3 Is Tax Reform Good for Business? Is a Pro-business Tax Policy Good for America? - Discussion
- Discussion
-
4 Taxation and Business Behavior: A Review of the Recent Literature - Discussion
- Discussion
-
5 Consumption Tax Reform: Changes in Business Equity and Housing Prices - Discussion
- Discussion
-
6 Corporation Tax Incidence: Reflections on What Is Known, Unknown, and Unknowable - Discussion
- Discussion
-
7 Corporate Taxes in the World Economy: Reforming the Taxation of Cross-border Income - Discussion
- Discussion
-
8 Evidence of Tax-Induced Individual Behavioral Responses - Discussion
- Discussion
-
9 Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation - Discussion
- Discussion
-
10 Behavioral Economics and Fundamental Tax Reform - Discussion
- Discussion
- References
- Index
