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The Economics of Corporate and Business Tax Reform
Report

The Economics of Corporate and Business Tax Reform

Dhammika Dharmapala
CESifo Group Munich, 2016
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Editorial 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.

Take-Aways

  • The United States has a higher nominal corporate tax rate than other nations. It’s also the only top economy that continues to tax its resident multinationals’ global earnings.
  • As a result, the US tax structure provokes several economically inefficient corporate behaviors, mostly affecting the choice of business locations.
  • Tax considerations also play a role in where firms decide to apply for patents and in how entities pursue financing strategies.

About the Author

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

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