Some people have hailed the alternative minimum tax (AMT) as a flat, low-rate, broad-based tax that would be a good replacement for the regular income tax. A closer look at the AMT dispels this rosy view

n recent years, governments around the world have slashed corporate tax rates -- with the average rate falling from 38 to 27 percent from 1992 to 2006 in a large sample of countries -- in response to global competitive pressures. Fearing that governments will lose a valuable revenue source, some...

Many economists favor revenue-neutral reforms that broaden the corporate tax base and lower the statutory tax rate. Economic analysis provides partial, but not complete, support for this view. Welfare gains do not arise from a lower tax rate as such, but from leveling the playing field between...

It is widely recognized that the current U.S. corporate income tax is flawed, particularly in its treatment of foreign‐source income. These flaws are amplified by the high U.S. statutory tax rate. Unfortunately,current reform proposals fail to resolve the fundamental contradictions in the...

Although it is widely recognized that a temporary corporate tax rate cut will do less to encourage investment than a permanent rate cut, the temporary cut's limitations are actually even more severe. A temporary rate cut would discourage many types of investment during the period it was in...

Contrary to some commentators' perceptions, the economic case for corporate tax rate reduction does not involve the hope that corporations will “use” their tax savings to make additional investments, pay higher wages, or hire additional employees. Profit-maximizing corporations look at the...

This report examines the taxation of corporate gains on depreciable business property, an important topic that has received little attention in the economic literature. The analysis reveals that current law, under which gains on such sales are taxed at ordinary tax rates and buyers are allowed...