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.
American companies are often paying far less than the official federal corporate tax rate of 35 percent, David Leonhardt of the New York Times writes in this article. The official rate is higher than in almost any other country, which forces companies to devote enormous time and effort to finding loopholes.
Due to an increasing U.S. Federal government deficit many groups now argue for the institution of a national value-added tax (VAT) to increase government revenue. James M. Bickley of the Congressional Research Service examines the plausibility of enacting such a plan.
Amity Shlaes argues that the payroll tax cut for 2011 jeopardizes U.S. growth in the longer run. When a showcase contract like Social Security is compromised, citizens' faith in other contracts, public or private, begins to fray and their willingness to invest or hire weakens.
In the face of a weak job market in the near term and an unsustainable budget deficit over the longer term, Peter Orszag argues that we should extend the Bush-era tax cuts for two years and then end them altogether.
Outsourcing remains a contentious political issue as lawmakers, analysts, and business leaders debate its effect on U.S. job creation and the role of corporate tax policy in shipping jobs overseas, explains this Backgrounder.
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 it is essential to begin working now to expand and establish rules and norms governing armed drones, thereby creating standards of behavior that other countries will be more likely to follow.
The author examines Pakistan's complex role in U.S. foreign policy and advocates for a two-pronged approach that works to quarantine threats while integrating Pakistan into the broader U.S. agenda in Asia.