Deferral and the Optimal Taxation of International Investment Income
AbstractIn 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 53 (2000)
Issue (Month): n. 3 (September Citation: 53 National Tax Journal 589-600 (September 2000))
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hines, James R, Jr & Rice, Eric M, 1994.
"Fiscal Paradise: Foreign Tax Havens and American Business,"
The Quarterly Journal of Economics,
MIT Press, vol. 109(1), pages 149-82, February.
- Hines, J.R. & Rice, E.M., 1990. "Fiscal Paradise: Foreign Tax Havens And American Business," Papers 56, Princeton, Woodrow Wilson School - Discussion Paper.
- James R. Hines, Jr. & Eric M. Rice, 1994. "Fiscal Paradise: Foreign Tax Havens and American Business," NBER Working Papers 3477, National Bureau of Economic Research, Inc.
- Slemrod, Joel & Hansen, Carl & Procter, Roger, 1997.
"The seesaw principle in international tax policy,"
Journal of Public Economics,
Elsevier, vol. 65(2), pages 163-176, August.
- Rosanne Altshuler, 2000. "Recent Developments in the Debate on Deferral," Departmental Working Papers 200013, Rutgers University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.