Unlike other economic powerhouses, the United States does little to help its own companies win business abroad, and that timidity has allowed China to devour market share in emerging economies. It is time for Washington to shed its hang-ups about lobbying on behalf of American firms and start taking commercial diplomacy seriously.
As the White House releases the 2013 budget, corporate taxation could be an issue where Congress can find compromise in fiscal policy. Both parties agree the current corporate tax regime is inefficient and often disadvantages U.S. businesses globally.
With Wall Street careening from one crisis to the next, financial institutions focus on drawing a line to stanch the bleeding. A broader debate over systemic medicine has also kicked into gear, with talk of major reforms in store for the financial sector.
Most lawmakers agree corporate tax reform is an important step in improving U.S. global economic competitiveness, but a debate over rate levels and whether to tax foreign profits of multinationals remains unresolved.
This report focuses on the global issues relating to tax rate differentials between the United States and other countries. It provides tax rate comparisons; discusses policy implications, including the effect of a corporate rate cut on revenue, output, and national welfare; and discusses the outlook for and consequences of a revenue neutral corporate tax reform.
Authors: Scott D. Dyreng, Michelle Hanlon, and Edward L. Maydew
Scott D. Dyreng, Michelle Hanlon, and Edward L. Maydew say they have developed a measure to investigate the extent to which some firms are able to avoid taxes over periods as long as ten years, and how predictive one-year tax rates are for tax avoidance in the long run.
The Council on Foreign Relations' David Rockefeller Studies Program—CFR's "think tank"—is home to more than seventy full-time, adjunct, and visiting scholars and practitioners (called "fellows"). Their expertise covers the world's major regions as well as the critical issues shaping today's global agenda. Download the printable CFR Experts Guide.
The authors argue that the United States has responded inadequately to the rise of Chinese power and recommend placing less strategic emphasis on the goal of integrating China into the international system and more on balancing China's rise.
Campbell evaluates the implications of the Boko Haram insurgency and recommends that the United States support Nigerian efforts to address the drivers of Boko Haram, such as poverty and corruption, and to foster stronger ties with Nigerian civil society.
Koblentz argues that the United States should work with other nuclear-armed states to manage threats to nuclear stability in the near term and establish processes for multilateral arms control efforts over the longer term.
Learn more about CFR’s mission and its work over the past year in the 2014 Annual Report. The Annual Report spotlights new initiatives, high-profile events, and authoritative scholarship from CFR experts, and includes a message from CFR President Richard N. Haass. Read and download »