The Effect of Taxes on Investment and Income Shifting to Puerto Rico
The income of Puerto Rican affiliates of U.S. corporations is essentially untaxed by either Puerto Rico or the U.S. This lowers the tax penalty on real investment there, and also makes it attractive to shift reported taxable income from the U.S. parent corporation to the Puerto Rican affiliate. Because the ability to shift income is affected by the presence of real operations, the true marginal effective tax rate on investment in Puerto Rico depends on the income shifting opportunities.
|Date of creation:||Sep 1994|
|Date of revision:|
|Publication status:||published as Review of Economics and Statistics, Vol. 80, no. 3 (August 1998): 365-373.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Joel Slemrod, 2001.
"A General Model of the Behavioral Response to Taxation,"
International Tax and Public Finance,
Springer, vol. 8(2), pages 119-128, March.
- Joel Slemrod, 1998. "A General Model of the Behavioral Response to Taxation," NBER Working Papers 6582, National Bureau of Economic Research, Inc.
- Michael J. Boskin & William G. Gale, 1987.
"New Results on the Effects of Tax Policy on the International Location of Investment,"
in: The Effects of Taxation on Capital Accumulation, pages 201-222
National Bureau of Economic Research, Inc.
- Michael J. Boskin & William G. Gale, 1986. "New Results on the Effects of Tax Policy on the International Location of Investment," NBER Working Papers 1862, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4869. 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: ()
If references are entirely missing, you can add them using this form.