Multinational Tax Model Archive
Biden Interest Limitation: Interest Limitation Pile-On
December 10, 2021 No Comments
TweetShareSharePin0 Shares How should tax policy treat interest expenses? Historically, corporate income tax systems in the U.S. and around the world have allowed businesses to deduct their interest paid. As Congress contemplates adding a new worldwide interest limitation rule as part of the Build Back Better Act (BBBA), it is useful to consider the potential
Who Gets Hit by the Book Minimum Tax?
November 18, 2021 No Comments
TweetShareSharePin0 Shares The current version of the reconciliation bill—the Build Back Better Act—attempts to walk a fine (politically imposed) line: raising hundreds of billions of dollars from higher corporate taxes without raising the corporate tax rate. The centerpiece of this effort is the book minimum tax, a new alternative minimum tax applied to the financial
How Would the Ways and Means Proposal Affect Profit Shifting?
October 7, 2021 No Comments
TweetShareSharePin0 Shares Recent proposals to increase the effective tax rates (ETRs) faced by multinationals rely on the argument that these firms achieve artificially low tax rates by shifting profits to foreign tax havens and other low-tax countries. By raising the tax rates on the foreign income of U.S. multinationals, these proposals would supposedly reduce profit
Which Industries Would the Tax Hikes Target?
October 5, 2021 No Comments
TweetShareSharePin0 Shares A recent Tax Foundation analysis considered how various proposals from the Biden administration, from Congress, and from the Organisation for Economic Co-operation and Development would affect the effective tax rates (ETRs) on the foreign profits of U.S. multinationals. That analysis focused on how each policy and proposal would affect the overall ETRs. But
US Multinational Corporation Tax Data & Analysis
September 29, 2021 No Comments
TweetShareSharePin0 Shares Recent proposals from the Biden administration and congressional Democrats aim to hike taxes on the foreign profits of U.S. multinationals, resting on the claim that U.S. multinationals pay very low tax rates on these foreign profits. But how heavily taxed are they, and how would various proposals affect these tax rates? U.S. multinational