Trade and economic impacts of destination-based corporate taxes

Trade and economic impacts of destination-based corporate taxes
Author :
Publisher : Intl Food Policy Res Inst
Total Pages : 28
Release :
ISBN-10 :
ISBN-13 :
Rating : 4/5 ( Downloads)

Book Synopsis Trade and economic impacts of destination-based corporate taxes by : Martin, Will

Download or read book Trade and economic impacts of destination-based corporate taxes written by Martin, Will and published by Intl Food Policy Res Inst. This book was released on 2017-02-09 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Current US proposals for destination-based corporate taxes that effectively combine a value-added tax (VAT) and a wage subsidy raise important policy questions for countries considering them, and for their trading partners. This tax/subsidy package would not create trade barriers or export subsidies, and any changes in trade would result from the measures’ distributional consequences or short-run impacts on output. The package would leave business profits and rents untaxed, placing the burden of the tax entirely on consumers, with no offset from exchange rate appreciation. If anything, its introduction could cause a short-run real exchange rate depreciation. A key concern regarding this package is its small, volatile, and vulnerable revenue yield. At current US consumption and labor shares of gross domestic product (GDP), a 20 percent corporate cash-flow tax with a wage subsidy would generate only around 2 percent of GDP in revenues, a result that could be obtained with much less volatility from a 2.8 percent tax without the wage subsidy. Under the tax/subsidy regime, revenues would become negative if consumption and labor shares returned to their historical norms, requiring increases in other taxes. A 20 percent tax would raise consumer prices by up to 27 percent, taking into account state sales taxes, sharply cutting the living standards of people on fixed incomes. The average combined consumption tax rate of 33 percent would be the highest in the world and more than double the world-average VAT rate, creating incentives for avoidance and evasion.

Trade and economic impacts of destination-based corporate taxes Related Books

Trade and economic impacts of destination-based corporate taxes
Language: en
Pages: 28
Authors: Martin, Will
Categories: Political Science
Type: BOOK - Published: 2017-02-09 - Publisher: Intl Food Policy Res Inst

GET EBOOK

Current US proposals for destination-based corporate taxes that effectively combine a value-added tax (VAT) and a wage subsidy raise important policy questions
Corporate Tax Reform: From Income to Cash Flow Taxes
Language: en
Pages: 34
Authors: Benjamin Carton
Categories: Business & Economics
Type: BOOK - Published: 2019-01-16 - Publisher: International Monetary Fund

GET EBOOK

This paper uses a multi-region, forward-looking, DSGE model to estimate the macroeconomic impact of a tax reform that replaces a corporate income tax (CIT) with
Taxation in the Global Economy
Language: en
Pages: 456
Authors: Assaf Razin
Categories: Business & Economics
Type: BOOK - Published: 2008-04-15 - Publisher: University of Chicago Press

GET EBOOK

The increasing globalization of economic activity is bringing an awareness of the international consequences of tax policy. The move toward the common European
Why is There Corporate Taxation in a Small Open Economy?
Language: en
Pages: 22
Authors: Roger H. Gordon
Categories: Corporations
Type: BOOK - Published: 1994 - Publisher:

GET EBOOK

Several recent papers argue that corporate income taxes should not be used by small, open economies. With capital mobility, the burden of the tax falls on fixed
Globalization and Corporate Taxation
Language: en
Pages: 49
Authors: Mr.Manmohan S. Kumar
Categories: Business & Economics
Type: BOOK - Published: 2012-10-22 - Publisher: International Monetary Fund

GET EBOOK

This paper analyzes the extent to which the degree of international economic integration, both financial and trade, affects corporate tax rates. It explores thi