The paper provides a framework for designing international tax rules by outlining the various behavioral margins they apply to. It then goes on to analyze three specific policy issues in terms of preserving the neutrality of choices along the relevant margins: (1) Which foreign taxes should be...

This analysis compares the current tax system with one that would exempt the foreign dividends of American corporations from U.S. taxes.

This paper uses data aggregated from tax returns of more than 500 U.S. multinational corporations (MNCs) to identify the role of host country tax rates in determining the amount of capital invested in 60 potential locations. The empirical results show that average effective tax rates have a...

This analysis of formula apportionment compared to the current U.S. system recognizes that income shifting has two main sources, excess returns attributable to intangibles and debt, and that a major goal of income division systems is preserving neutrality between arm’s length and related party...

The taxation of financial services used by households has been a stumbling block in designing consumption taxes. We present a theoretical case for exempting from tax investment services, loan services, and insurance services. These services are not consumption items. Instead, they represent the...