We approach the question of how moving to a dividend exemption system would affect the location incentives of U.S. corporations from three different angles. We start by comparing the U.S. allocation of foreign direct investment in manufacturing across low-tax versus high-tax jurisdictions with...

In August 2009 the Congressional Budget Office warned that the budget was on an unsustainable path. Preventing federal debt from growing faster than the economy over the long-run requires large increases in revenues and/or decreases in spending. We explore, using the Urban-Brookings Tax Policy...

We model and estimate the incidence of the corporate income tax under imperfect competition. Identification comes from variation in effective marginal tax rates in the United States across industries and time. Our empirical results suggest that labor bears a significant portion of the burden of...

Excess credits and tax-credit carryforwards affect corporations' investment in foreign subsidiaries. This study examines import and export neutrality, excess foreign tax credits created by TRA '86, and the tax consequences of dividend remittances.

This analysis of formula apportionment compared to the current U.S. system recognizes that income shifting has two main sources, excess returns attributable to intangibles and debt, and that a major goal of income division systems is preserving neutrality between arm’s length and related party...

We examine the measurement of tax expenditures, as well as review issues concerning the classification of tax expenditures generally. We use calculations from the Tax Policy Center’s microsimulation tax model to illustrate some of the problems with the current methodology for estimating tax...

Uses tax return data to investigate the incentive effect of the incremental research and experimentation credit. Estimates that the average effective rate of credit in 1981 was less than one-tenth of the statutory rate.

Uses both annual and time-exposure income to measure the incidence of the child care credit. Finds that replacing annual with time-exposure income increases the proportion of the credit received by low-income taxpayers and yields a more even distribution of benefits across middle and upper...

On November 1, 2005, the President's Advisory Panel on Federal Tax Reform (Panel) delivered its report to Treasury Secretary John W. Snow. The bipartisan Panel was organized ten months earlier by President George W. Bush to study options to reform the federal income tax system in ways that would...

In this paper, we estimate the effect of the tax preference for health insurance on health care spending using data from the Medical Expenditure Panel Surveys from 1996–2005. We use the fact that Social Security taxes are only levied on earnings below a statutory threshold to identify the...