In this brief, we describe the features of the US tax system that favor buybacks over dividends. We also estimate the size of those tax advantages. In the absence of any excise taxes, we calculate the US tax advantage for buybacks over dividends would be 7.2 percent. About two-thirds of the...
States and local governments in the US have started implementing cryptocurrency and blockchain technology initiatives and policies. Supporters of these technologies highlight the transformative potential for improving local governance, but many remain skeptical about their long-term effects on...
The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies....
Following release of the Organisation for Economic Co-operation and Development’s (OECD’s) model global minimum tax rules in December 2021, European Union member states and many...
In recent years, businesses have been able to fully deduct expenses related to research and development (R&D) in the year the investment was made (often...
As expected, President Biden’s 2024 proposed budget included several changes to the tax treatment of foreign income. Although prior attempts to rewrite these tax rules...
Companies now spend more than a $1 trillion annually to repurchase their stock, in lieu of paying higher dividends to their shareholders, or investing more...
Although Congress managed to reach a year-end topline spending agreement, it left many tax questions unanswered heading into 2023. One is considering whether to allow...
The House is set to consider final passage of the Inflation Reduction Act (IRA) later this week, following months of negotiations over President Biden’s Build Back Better agenda. To help fund the...
Corporate tax reforms introduced by the 2017 Tax Cuts and Jobs Act (TCJA) encouraged foreign-owned US companies to reinvest more of their earnings here, according...
The recent runup in oil prices and general inflation have boosted tax benefits from the “last-in, first-out” (LIFO) inventory accounting tax break. LIFO tax expenditures,...
President Biden’s 2023 budget would replace the current 10 percent base erosion anti-avoidance tax (BEAT) on US subsidiaries of foreign corporations with a 15 percent...
The Build Back Better (BBB) bill’s winter holiday gives Congress more time to evaluate the plan’s components, including a 15 percent minimum tax on the...
The Build Back Better proposal for a 1 percent excise tax on corporate share buybacks would reduce their tax advantage relative to dividend distributions. Equivalent...
US taxation of intellectual property (IP) is facing big changes. Starting next year, research and development (R&D) expenditures, now fully expensed (written off in the...
