Written for a non-technical audience, this book summarizes the research on the structure and effects of tax policies collected in "The Effects of Taxation on Multinational Corporations". The book covers such practical issues as the impact of tax law on US competitiveness, the volume and location of research and development spending, the extent of foreign direct investment and the financial practices of multinational companies. In ten succinct chapters, the book documents the channels through which tax policy in the United States and abroad affects plant and equipment investments, spending on research and development, the cost of debt and equity finance, and dividend repatriations by United States subsidiaries. It also discusses the impact of US firms' outbound foreign investment on domestic and foreign economies. Especially useful to non-specialists is an appendix that summarizes current United States rules for taxing international income.
Preface Introduction Martin Feldstein, James R. Hines, Jr., R. Glenn Hubbard. 1: Home-Country Effects of Outward Direct Investment Robert E. Lipsey 2: Tax Rules and the Effect of Foreign Direct Investment on U.S. National Income Martin Feldstein 3: Corporate Taxes and the Cost of Capital for U.S. Multinationals Joosung Jun 4: The Importance of Income Shifting to the Design and Analysis of Tax Policy Roger H. Gordon, Jeffrey K. MacKie-Mason. 5: Alternative Minimum Tax Rules and Multinational Corporations Andrew B. Lyon, Gerald Silverstein. 6: Taxes, Technology Transfer, and R&D by Multinational Firms James R. Hines, Jr 7: Tax Planning, Timing Effects, and the Impact of Repatriation Taxes on Dividend Remittances Rosanne Altshuler, T. Scott Newlon, William C. Randolph. 8: Is Foreign Direct Investment Sensitive to Taxes? Jason G. Cummins, R. Glenn Hubbard. 9: The Tax Treatment of Interest and the Operations of U.S. Multinationals Kenneth A. Froot, James R. Hines, Jr. 10: International Accounting, Asymmetric Information, and Firm Investment Jason G. Cummins, Trevor S. Harris, Kevin A. Hassett. Appendix James R. Hines, Jr., R. Glenn Hubbard. Contributors Author Index Subject Index