IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v63y2010i4p1111-1144.html
   My bibliography  Save this article

Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits

Author

Listed:
  • Graham, John R.
  • Hanlon, Michelle
  • Shevlin, Terry

Abstract

Using data from a survey of tax executives, we examine the corporate response to the one-time dividends received deduction in the American Jobs Creation Act of 2004. We describe the firms’ reported sources and uses of the cash repatriated and we also examine non-tax costs companies incurred to avoid the repatriation tax prior to the Act. Finally, we examine whether firms would repatriate cash again if a similar Act were to occur in the future. Overall, the evidence is consistent with a substantial lockout effect resulting from the current U.S. policy of taxing the worldwide profits of U.S. multinationals.

Suggested Citation

  • Graham, John R. & Hanlon, Michelle & Shevlin, Terry, 2010. "Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(4), pages 1111-1144, December.
  • Handle: RePEc:ntj:journl:v:63:y:2010:i:4:p:1111-1144
    as

    Download full text from publisher

    File URL: https://www.ntanet.org/NTJ/63/4/ntj-v63n04p1111-1144-barriers-mobility-lockout-effect.pdf
    Download Restriction: Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

    File URL: https://www.ntanet.org/NTJ/63/4/ntj-v63n04p1111-1144-barriers-mobility-lockout-effect.html
    Download Restriction: Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Graham, John R. & Raedy, Jana S. & Shackelford, Douglas A., 2012. "Research in accounting for income taxes," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 412-434.
    2. repec:eee:corfin:v:49:y:2018:i:c:p:252-282 is not listed on IDEAS
    3. Aaron Flaaen, 2017. "The Role of Transfer Prices in Profit-Shifting by U.S. Multinational Firms : Evidence from the 2004 Homeland Investment Act," Finance and Economics Discussion Series 2017-055, Board of Governors of the Federal Reserve System (U.S.).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:63:y:2010:i:4:p:1111-1144. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sally Sztrecska). General contact details of provider: https://www.ntanet.org/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.