Document Type
Book Chapter
Publication Date
5-28-2008
Abstract
Around the world, policymakers are obsessed with the competitiveness of their domestic companies and domestically based multinational corporations (MNCs). Such concerns frequently influence policy, especially tax policy. In this paper, I develop a theory of how taxes affect the international competitiveness of businesses. I then use that theory to evaluate basic tax policy decisions, such as the choice between residence- and source-based taxation and the level of tax rates, and to understand the impact various provisions in the U.S. Internal Revenue Code are likely to have on the competitiveness of U.S.-based corporations and MNCs.
Keywords
competitiveness, taxation, international competitiveness, international taxation, territorial taxation, worldwide taxation, foreign tax credit, source-based taxation, residence-based taxation, capital export neutrality, capital import neutrality, capital ownership neutrality
Publication Title
Dimensions of Competitiveness
Repository Citation
Knoll, Michael S., "Business Taxes and International Competitiveness" (2008). Faculty Scholarship at Penn Carey Law. 212.
https://scholarship.law.upenn.edu/faculty_scholarship/212
Included in
Business Organizations Law Commons, International Economics Commons, International Trade Law Commons, Law and Economics Commons, Taxation Commons, Taxation-Transnational Commons, Tax Law Commons
Publication Citation
In Dimensions of Competitiveness (Paul De Grauwe ed., MIT 2010)