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US Corporate Tax Reform: Why is a Worldwide Tax System Absent from the Debate?

7 Pages Posted: 24 Sep 2013 Last revised: 27 Sep 2013

Roy Clemons

New Mexico State University

Michael Kinney

Texas A&M University - Department of Accounting

Date Written: September 16, 2013

Abstract

Reform of the U.S. international tax policy is under consideration in Congress. Policymakers are concerned with both reducing tax disincentives to repatriate earnings to the U.S. and with constraining business tactics to move U.S. income offshore. We argue that to achieve significant tax reform, policymakers should generate reform alternatives based on ideas that are shared across partisan and ideological divides. The common ground among political perspectives includes broadening the tax base and lowering tax rates, simplifying the tax code, and assuring U.S. corporations pay their fair share while remaining competitive in the global economy. Most proposals are centered on changing the current tax system into a territorial system rather than preserving some form of worldwide system. Informed by recent research, we present arguments favoring a burden-neutral worldwide tax system as the basis for U.S. international income tax reform.

Keywords: international, worldwide, territorial, tax reform, tax policy, corporate

Suggested Citation

Clemons, Roy and Kinney, Michael, US Corporate Tax Reform: Why is a Worldwide Tax System Absent from the Debate? (September 16, 2013). Tax Notes International, Vol. 71, No. 12, 2013. Available at SSRN: https://ssrn.com/abstract=2329687

Roy Clemons (Contact Author)

New Mexico State University ( email )

P.O. Box 30001
Las Cruces, NM 88003-8001
United States

Michael R. Kinney

Texas A&M University - Department of Accounting ( email )

430 Wehner
College Station, TX 77843-4353
United States
979-862-2078 (Phone)
979-845-0028 (Fax)

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