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International Taxation and Competitiveness: Introduction and Overview

11 Pages Posted: 3 May 2012 Last revised: 18 Sep 2012

Reuven S. Avi-Yonah

University of Michigan Law School

Nicola Sartori

Università degli Studi di Milano-Bicocca; University of Michigan at Ann Arbor

Date Written: May 3, 2012

Abstract

The debate about whether to abolish deferral or to adopt territoriality has been going on ever since the Kennedy Administration first proposed ending deferral in 1961. The problem is that neither side has factual support for their argument about whether the U.S. tax system, including Subpart F, as currently enacted or with any of the proposed reforms, in fact negatively impacts the tax burden of US-based MNEs. Even the concept of competitiveness itself is unclear. Despite numerous claims, there has been no rigorous attempt that we are aware of to determine whether MNEs based in our major trading partners in fact have a tax advantage or disadvantage because of Subpart F or other rules.

In October, 2011, the American Tax Policy Institute sponsored a conference organized by Reuven Avi-Yonah and Jane Gravelle on 'International Taxation and Competitiveness'. This conference was designed to address these issues in a systematic way, and to form the basis for a better informed policy debate going forward. The articles included in this volume were first presented at this conference.

Keywords: tax law, international taxation, competitiveness, CFC, Subpart F, effective tax rates, American Tax Policy Institute

JEL Classification: K34, H2

Suggested Citation

Avi-Yonah, Reuven S. and Sartori, Nicola, International Taxation and Competitiveness: Introduction and Overview (May 3, 2012). Tax Law Review, Vol. 65, 2012; U of Michigan Law & Econ Research Paper No. 12-014. Available at SSRN: https://ssrn.com/abstract=2050329 or http://dx.doi.org/10.2139/ssrn.2050329

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Nicola Sartori

Università degli Studi di Milano-Bicocca ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, Milan 20126
Italy

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

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