The Effects of Taxation on Multinational Corporations pdf

[...]...Preface The tax rules of the United States and of foreign countries affect multinational corporations in a variety of ways Researchers at the National Bureau of Economic Research have been studying the impact of taxation on multinational corporations for several years From time to time, the results of this research have been presented at NBER conferences and subsequently published in NBER volumes The papers... the George F Baker F’rofessor of Economics at Harvard University and president of the National Bureau of Economic Research James R Hines, Jr., is associate professor of public policy at the John F Kennedy School of Government of Harvard University and a faculty research fellow of the National Bureau of Economic Research R Glenn Hubbard is the Russell L Carson Professor of Economics and Finance at the. .. greater R&D intensity on the part of affiliates, suggesting that local R&D is a substitute for imported technology International Tax Rules and Financing Decisions A longstanding question in the analysis of taxation of multinational corporations is whether home-country taxes due on repatriation of foreign-source income affect subsidiaries’ repatriation decisions In principle, as long as the home-country... international tax rules have become more complex and more distorting in recent years, particularly since the passage of the Tax Reform Act of 1986 Discussions in the U.S Congress and the administration since 1992 reveal a willingness to consider significant reforms In Europe, increased liberalization of capital markets prompted discussions by the European Commission of harmonization of corporate taxation These... U.S Economy Robert E Lipsey Any judgment about the wisdom of tax changes that raise or lower the profitability of American firms’ foreign operations must involve some judgment as to the desirability of increasing or decreasing the extent of these operations The purpose of this paper is to review past research on the effects of U.S firms’ overseas activities on the U.S economy and to report some further... to the service component of manufacturing industries, a major part of the final value of sales of manufactured products 1.1 The Growth of Internationalized Production The establishment of foreign operations by American firms-and the establishment by any country’s firms of production, including sales and service activities, outside the home country-is often referred to as the internationalization of. .. in the share of Swedish multinationals was accompanied by, or possibly accomplished by, a large shift in the sources of export production, with the portion of exports sold by foreign affiliates rising from a tenth of total multinational exports in 1965 to over a third in 1990 (table 1.7) These three countries are the only ones that collect fairly comprehensive information on the trade of their multinationals’... that the impact on parent employment is related to the absolute value of affiliate production: an addition of a million dollars of affiliate production has the same impact on parent employment whether the affiliates are one-tenth the parent’s size, in the aggregate, or twice the parent’s size The same calculations can be performed within the major manufacturing industry groups, reducing the influence of. .. employed in the United States by the investing companies and also those on the companies themselves, inRobert E Lipsey is professor of economics at Queens College and the Graduate Center, City University of New York, and a research associate of the National Bureau of Economic Research 7 8 Robert E Lipsey cluding their stockholders, and more generally on the trade and other aspects of the U.S economy Various... proportions of the production they controlled took place abroad, larger proportions of their employees were outside the United States, and larger shares of their assets came to be located abroad Since then, however, the degree of internationalization of U.S companies has stabilized or declined, as if the firms had overshot some desirable level and found it desirable to retreat somewhat The peak in the . Intentionally Left Blank The Effects of Taxation on Multinational Corporations A National Bureau of Economic Research Project Report The Effects of. Relation of the Directors to the Work and Publications of the National Bureau of Economic Research 1. The object of the National Bureau of Economic