November 1, 1993 Taxes and Foreign Acquisitions in the United States Julie Collins Douglas A. Shackelford Julie Collins, Douglas A. Shackelford Print this page Subscribe Support our work Download 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. Topics Center for Federal Tax Policy Business Taxes Individual and Consumption Taxes Research Tags Tax Reform Act of 1986
