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Short FormThe Short Form: What You Need to Know about the Global Tax Deal
The technical rules that were once solely the province of tax wonks in D.C. and Paris are being brought out into the public sphere.
4 min read
Short FormFeatured Articles
Short Form
Weeding the Garden of International Tax
Simplifying international tax rules will not solve all the challenges that stand in the way of healthy cross-border investment, but eliminating unnecessary provisions would be a positive pivot relative to the trajectory of recent years. It’s high time that policymakers stopped pursuing ever more complex rules and started the hard work of simplification.
6 min read
The Latest on the Global Tax Agreement
The agreement represents a major change for tax competition, and many countries will be rethinking their tax policies for multinationals in light of it. However, with both the U.S. and EU hitting roadblocks in their respective legislative processes, it is unclear when or even if the agreement will be implemented. If implementation fails, a return to a world of distortive European digital services taxes and retaliatory American tariffs could be on the horizon.
7 min readAll Related Articles
Republican Study Committee’s Tax Plan Simplifies the Tax Code and Offers Pro-Growth Ideas
By extending bonus depreciation and introducing neutral cost recovery, the RSC budget would significantly improve the treatment of investment leading to increased growth, expanded employment, and higher wages.
3 min read
The Latest on the Global Tax Agreement
The agreement represents a major change for tax competition, and many countries will be rethinking their tax policies for multinationals in light of it. However, with both the U.S. and EU hitting roadblocks in their respective legislative processes, it is unclear when or even if the agreement will be implemented. If implementation fails, a return to a world of distortive European digital services taxes and retaliatory American tariffs could be on the horizon.
7 min read
Why Does the UTPR Matter?
As the UTPR is a new concept, it is worth explaining what it is and why Rep. Smith cares about it. In a sentence, the Undertaxed Profits Rule (UTPR) is a looming extraterritorial enforcement mechanism for a tax base the U.S. has not adopted.
6 min read
New Ways & Means Proposal Shows Continued Commitment to Combat Extraterritorial Taxes
The legislation follows from the bipartisan concern regarding tax policies adopted by other countries specifically targeting U.S. businesses or the U.S. tax base.
6 min read
Testimony: The Role of Corporate Taxation in the European Union’s Future Tax Policy Mix
As policymakers shift their focus away from tax rates and look to harmonize the EU’s corporate tax base, they should understand the benefits of full expensing.
6 min read
Testimony: U.S. International Tax Policies That Support Investment and Innovation
Even in the face of a global minimum tax, Congress still has a chance to develop a strategic approach in support of U.S. investment and innovation.
31 min read
Does the Optimal Tax System Exist?
While research on optimal taxation often focuses on the pure economic implications, it rarely considers cultural and societal differences that can lead to very different outcomes when trying to implement an optimal tax system.
3 min read
How to Unlock Global Growth: The Role of Taxation
Our recent policy conference brought together academics and political leaders to present research on some of the most pressing issues in global tax policy and to discuss solutions that can unlock genuine global growth.
9 min read
Tax Foundation Response to UN Request for Public Input on Inclusive and Effective Tax Cooperation
Sound tax policy should be based on the principles of simplicity, stability, transparency, and neutrality.
4 min read
EU Taxation: Prioritizing Geopolitics over Revenue
If the EU wants to strategically compete with economic powers like the United States or China, it needs principled, pro-growth tax policy that prioritizes efficient ways to raise revenue over geopolitical ambitions.
6 min read
What the OECD’s Pillar Two Impact Assessment Misses
The process leading to the global minimum tax has been messy, and the mess will likely continue for years to come. New revenues are hardly a salve for the setback they represent.
7 min read
Pursuing Delors’ Single Market: What the EU Gets Wrong About Its Economic Power and What It Means for the U.S.
Before EU policymakers rush to implement massive reforms, they should remember the goals of the Single Market, its international limitations, and the role of tax policy.
4 min read
In the Shadow of T-TIP: Why Congress Should Care About EU Tax and Trade Issues in 2023
The EU’s unilateral approach with carbon taxes, faster track on the global minimum tax, and threat of renewed efforts on DSTs means that U.S. policymakers face some hard choices. Policymakers on both sides of the Atlantic should keep in mind pro-growth tax and trade principles that promote a rules-based international order and increase opportunity.
7 min read
How the Inflation Reduction Act and Pillar Two Could Shape the Future of EU Competitiveness
French President Macron is coming to Washington, D.C., this week to ask President Biden the question on the minds of European leaders: “Why did you do this to us?”
6 min read
How the Inflation Reduction Act Affects the Future of U.S.-EU Tax and Trade Cooperation
the Inflation Reduction Act gives us a glimpse into a future where the U.S. and EU opt for protectionist tax and trade policies rather than implementing principled tax policies and reducing trade barriers between allies.
5 min read
Tax Hike Proposals Live on Despite Being Dropped in the Inflation Reduction Act
President Biden proposed a 7-point hike in the corporate tax rate to 28 percent, a new minimum book tax on corporate profits, and higher taxes on international activity. We estimated these proposals would reduce the size of the economy (GDP) by 1.6 percent over the long run and eliminate 542,000 jobs.
6 min read
The Economic, Revenue, and Distributional Effects of Permanent 100 Percent Bonus Depreciation
The phaseout of 100 percent bonus depreciation, scheduled to take place after the end of 2022, will increase the after-tax cost of investment in the U.S. Permanently extending it would increase long-run economic output by 0.4 percent and increase employment by 73,000 FTE jobs.
20 min read
How Does the Inflation Reduction Act Minimum Tax Compare to Global Minimum Tax?
Over the course of the last year, it has become clear that Democratic lawmakers want to change U.S. tax rules for large companies. However, as proposals have been debated in recent months, there are have been clear divides between U.S. proposals and the global minimum tax rules.
6 min read
Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession
Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.
5 min read
Three Questions on Pillar One
While the global minimum tax gets much attention in the media, there is another significant piece to the deal.
6 min read