Inversions have been in the news consistently this summer as multiple companies have looked for legal paths away from the U.S. corporate tax system. Burger King became the latest corporation to add to the list after they...
- 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 United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent, exceeded only by Chad and the United Arab Emirates.
- The worldwide average top corporate...
- IRS income data is collected in order to raise revenue as directed by Congress, which means it is not necessarily well-suited for other purposes, like measuring equality in our society.
- The average taxpayer’s...
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