Observers widely agree that the US corporate tax system is a mess—whether seen from the vantage point of competitiveness, efficiency, or fairness. A perception has also taken root, as enunciated by President Obama and many Democrats, that the corporate tax in particular has encouraged big globalized firms to ship operations and jobs overseas, where they […]
There is a long history of politicians claiming that American multinational corporations (MNCs) “ship jobs overseas” when they invest outside the United States. President Obama, for example, has proposed special support for US firms that stay at home, and criticized those that move abroad.
Playing to antibusiness sentiment, the group of the world’s most advanced economies—the Organization for Economic Cooperation and Development (OECD)—has been campaigning against corporate “tax abuse.” According to a senior OECD official, “The goal of the action plan is to close down the avenues [for abusive tax planning] that we have left open.” The targets of […]
Team Obama has announced a range of tax proposals designed to wring around $200 billion from US-based multinational corporations over the next decade. The political backdrop is the abuse oozing from Wall Street over the past year, huge bonuses, low tax rates on “carried interest,” money stashed in the Cayman Islands, coupled with a widespread […]
Are multinational corporations in the United States relocating their manufacturing sites overseas, abandoning workers and communities at home? And are their investments abroad “hollowing out” America’s productive capacity? At a time of global economic and financial turmoil, these questions are as controversial as ever. The 2008 election rekindled the debate over the practices of multinational […]