We recently outlined a bill introduced by Senator Patty Murray (D-WA), which would expand the EITC and pay for it in part by further limiting the deduction for executive compensation. The Senator believes that the...
- Taxes and Foreign Acquisitions in the United States
Taxes and Foreign Acquisitions in the United States
Special Academic Report
Executive Summary We test the hypothesis that the Tax Reform Act of 1986 (TRA 86) induced acquisitions of U.S. companies by foreign investors from worldwide tax jurisdictions, principally the United Kingdom and Japan. We find that tax advantages realized post-acquisition by U.K. and Japanese investors are very small relative to the size of the acquisitions. Thus, we conclude that TRA 86 did not significantly enhance the competitive advantage of foreign firms in the U.S. acquisition market.
The Tax Foundation’s Taxes and Growth Model was used to estimate the long-run effects on the U.S. economy and federal revenue of enacting the capital cost recovery plan developed by Senate Finance...
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