Daniel Bunn

Reducing the Bias Against Long-term Investments

Other countries have shown that providing deductions in line with invested capital costs can have positive impacts both on investment and on debt bias.

Chaos to the Left of Me. Chaos to the Right of me.

The OECD recently announced that the negotiation timeline for new digital tax proposals has now been pushed back to October due to the COVID-19 pandemic, although the end-of-year deadline for the overall project is still in place.

Tax Policy After Coronavirus: Clearing a Path to Economic Recovery

Governments at all levels must work to remove the tax policy barriers that stand in the way of economic recovery and long-term prosperity following the COVID-19 crisis. Our new guide outlines several comprehensive options that policymakers can take at the federal and state levels.

Is Now the Time for a $100 billion Tax Increase?

Seemingly unconcerned about how the digital project could impact the economy at this crisis moment, officials at the OECD recently released a statement boasting that they are continuing to work “full steam” on their global digital tax project.

Watch: Tax Foundation Experts Discuss Short-term Coronavirus Relief Packages

What could the next phase of relief look like and what role does tax policy play in ensuring the U.S. and countries around the world make a strong economic recovery?

Temporary Work Locations in a Permanent Establishment World

While much of the fiscal conversation surrounding the current pandemic has focused on tax relief and tax deferrals, another significant angle needs to be explored: the question of economic nexus.

Congress Approves Economic Relief Plan for Individuals and Businesses

The CARES Act, now signed into law, is intended to be a third round of federal government support in the wake of the coronavirus public health crisis and associated economic fallout, following the $8.3 billion in public health support passed two weeks ago and the Families First Coronavirus Response Act.

India Pushes Digital Taxes in a Difficult Time

Even during the coronavirus outbreak, efforts to change the way digital business models are taxed continue. India announced this week that its tax aimed at foreign digital companies, the “equalization levy,” will be expanded.

Tracking Economic Relief Plans Around the World during the Coronavirus Outbreak

Countries around the world are implementing emergency tax measures to support their economies under the coronavirus (COVID-19) threat.

Norway Opens the Fiscal Toolbox

Norway passed a large coronavirus tax relief package to address layoffs and bankruptcies, which includes a reduced VAT rate, the introduction of a loss carryback provision, and targeted postponements for wealth tax payments, among other provisions.

Economic Relief Plans Around the World During the Coronavirus Outbreak

Countries around the world are implementing emergency tax measures to support their debilitated economies under the coronavirus (COVID-19) threat.

For Italian Banks: Converting Future Deductions to Present Tax Credits

During the coronavirus outbreak, Italy has been hit especially hard. Policymakers have introduced numerous measures to stem the spread of the virus and provide relief to businesses that are facing a severe downturn.

Tax Policy and Economic Downturns

The Great Recession provides some insight into how tax revenues declined during a deep recession. Across OECD countries, revenues fell by 11 percent from 2008 to 2009 with corporate income taxes seeing the steepest decline at 28 percent. Revenues from individual income taxes fell by 16 percent.

Comparison of Cross-Border Effective Average Tax Rates in Europe and G7 Countries

As policymakers consider ways to facilitate investment, effective average tax rates provide a valuable perspective on where burdens on those activities are high and where they are low.

Key Tax Provisions from the UK’s 2020 Budget

How Controlled Foreign Corporation Rules Look Around the World: Colombia and a Perspective of Latin America

For Colombia, as well as for other countries in the world that are not capital exporters, one important question is whether CFC rules are necessary or are indirectly a requirement to be part of world organizations like the OECD (which Colombia is not a member) in order to be on the radar of larger economies.

New Evidence on Territorial Taxation

How Controlled Foreign Corporation Rules Look Around the World: Germany

Germany has had a Controlled Foreign Corporation (CFC) regime since 1972, when the German Foreign Transactions Tax Act was enacted. Under the German regime, a CFC is a foreign company where its capital or voting rights are either directly or indirectly majority-owned by German residents at the end of its fiscal year.

Bracing for Impact

Though they are limited by both data and assumptions, the OECD will face similar limitations. As policymakers work to fine-tune the proposals under both Pillar 1 and 2 the impact assessment should be a critical part of that discussion.

How Controlled Foreign Corporation Rules Look Around the World: Spain

The CFC legislation in Spain is not as complicated as it is in some other countries, and it is aligned with the standards recommended by the OECD. The Spanish rules have evolved in a way that the rules are designed to comply with the EU principles not to interrupt the functioning of the Union and its single market.