The Resource Taxing multinational corporations: average tax rates

Taxing multinational corporations: average tax rates

Label
Taxing multinational corporations: average tax rates
Title
Taxing multinational corporations: average tax rates
Creator
Subject
Language
eng
Summary
This article is a continuation of a previous analysis that used a new tax data source to provide more comprehensive estimates of average tax rates (ATR) on foreign and domestic income of U.S. corporations. This article includes estimates of the ATRs of U.S. CFCs by industry and by providing updated estimates of U.S. ATRs on foreign and domestic income of multinational corporations. Some observers express concern that the U.S. tax treatment of multinational corporations - a worldwide tax system combined with relatively high corporate tax rates - hinders firms' ability to operate abroad. The average foreign tax rate, however, that their CFCs faced on pretax earnings and profits for tax year 2006 was less than 16%, much lower than both the ATR of 27.3 for the income subject to tax for all corporations for the same tax year and the 25.9% rate for the foreign book income not eligible for deferral. U.S. corporations are likely not being negatively impacted by the U.S. corporate tax rate. Cyclical market fluctuations produce a disconnect between the taxes firms pay in a given year and the value of their financial income. There is no precise method of using tax data to determine which portion of the book income reported on the Schedule M-3 is attributable to foreign sources
Citation source
In: Tax law review. - New York. - Vol. 65 (2012),
http://library.link/vocab/creatorName
  • Costa, M
  • Gravelle, J
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • corporate income tax
  • average rate of income tax
  • MNE
  • CFC
  • tax rate
Label
Taxing multinational corporations: average tax rates
Instantiates
Publication
Label
Taxing multinational corporations: average tax rates
Publication

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