The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States

The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States

Author: Mr. Alexander D Klemm

Publisher: International Monetary Fund

Published: 2022-05-06

Total Pages: 30

ISBN-13:

DOWNLOAD EBOOK

The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies. We first model effective marginal and average tax rates (EMTRs and EATRs) by country, industry, and method of finance, and then use those tax rates to calculate the tax semi-elasticities of inbound FDI and PPE investment. We find that both PPE investment and FDI financed with retained earnings responded positively to the TCJA reform, but FDI financed with new equity or debt did not. In country-level PPE regressions, inclusion of macroeconomic controls renders tax rate coefficients insignificant, suggesting that the increase in PPE investment after TCJA was driven by general economic growth. In regressions of FDI financed with retained earnings, however, tax coefficients were robust to inclusion of macroeconomic controls. As the literature predicts, EATRs have a greater impact on cross-border investment than EMTRs. Country-by-industry regressions showed a larger effect of taxes on PPE investment than aggregate country-level regressions, but industry-level tax rates appear to have no effect on earnings retention.


Book Synopsis The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States by : Mr. Alexander D Klemm

Download or read book The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States written by Mr. Alexander D Klemm and published by International Monetary Fund. This book was released on 2022-05-06 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies. We first model effective marginal and average tax rates (EMTRs and EATRs) by country, industry, and method of finance, and then use those tax rates to calculate the tax semi-elasticities of inbound FDI and PPE investment. We find that both PPE investment and FDI financed with retained earnings responded positively to the TCJA reform, but FDI financed with new equity or debt did not. In country-level PPE regressions, inclusion of macroeconomic controls renders tax rate coefficients insignificant, suggesting that the increase in PPE investment after TCJA was driven by general economic growth. In regressions of FDI financed with retained earnings, however, tax coefficients were robust to inclusion of macroeconomic controls. As the literature predicts, EATRs have a greater impact on cross-border investment than EMTRs. Country-by-industry regressions showed a larger effect of taxes on PPE investment than aggregate country-level regressions, but industry-level tax rates appear to have no effect on earnings retention.

Tax Withholding and Estimated Tax

Tax Withholding and Estimated Tax

Author:

Publisher:

Published: 1993

Total Pages: 56

ISBN-13:

DOWNLOAD EBOOK


Book Synopsis Tax Withholding and Estimated Tax by :

Download or read book Tax Withholding and Estimated Tax written by and published by . This book was released on 1993 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Estimates of Federal Tax Expenditures

Estimates of Federal Tax Expenditures

Author: United States. Department of the Treasury

Publisher:

Published: 1975

Total Pages: 12

ISBN-13:

DOWNLOAD EBOOK


Book Synopsis Estimates of Federal Tax Expenditures by : United States. Department of the Treasury

Download or read book Estimates of Federal Tax Expenditures written by United States. Department of the Treasury and published by . This book was released on 1975 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Tax Cuts and Jobs Act: An Appraisal

The Tax Cuts and Jobs Act: An Appraisal

Author: Mr.Nigel A Chalk

Publisher: International Monetary Fund

Published: 2018-08-07

Total Pages: 48

ISBN-13: 1484372549

DOWNLOAD EBOOK

This paper assesses the landmark Tax Cuts and Jobs Act (TCJA), from the perspective of both the U.S. itself and the wider world. The reform has many positive aspects including steps to broaden the base of, and reduce marginal rates under, the personal income tax (PIT), reduce distortions to investment and financing decisions, and mitigate outward profit shifting. But the TCJA has a large fiscal price tag and leaves significant uncertainty as to how the U.S. tax system will develop. The PIT changes could have better targeted relief at low earners, and there is scope to more fully address distortions in business taxation. The novel international provisions create a complex array of both positive and negative international spillovers, and have the potential to significantly reshape the wider international tax system.


Book Synopsis The Tax Cuts and Jobs Act: An Appraisal by : Mr.Nigel A Chalk

Download or read book The Tax Cuts and Jobs Act: An Appraisal written by Mr.Nigel A Chalk and published by International Monetary Fund. This book was released on 2018-08-07 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the landmark Tax Cuts and Jobs Act (TCJA), from the perspective of both the U.S. itself and the wider world. The reform has many positive aspects including steps to broaden the base of, and reduce marginal rates under, the personal income tax (PIT), reduce distortions to investment and financing decisions, and mitigate outward profit shifting. But the TCJA has a large fiscal price tag and leaves significant uncertainty as to how the U.S. tax system will develop. The PIT changes could have better targeted relief at low earners, and there is scope to more fully address distortions in business taxation. The novel international provisions create a complex array of both positive and negative international spillovers, and have the potential to significantly reshape the wider international tax system.

U.S. Investment Since the Tax Cuts and Jobs Act of 2017

U.S. Investment Since the Tax Cuts and Jobs Act of 2017

Author: Emanuel Kopp

Publisher: International Monetary Fund

Published: 2019-05-31

Total Pages: 37

ISBN-13: 1498317049

DOWNLOAD EBOOK

There is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment. Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA primarily as a windfall for shareholders. We find that U.S. business investment since 2017 has grown strongly compared to pre-TCJA forecasts and that the overriding factor driving it has been the strength of expected aggregate demand. Investment has, so far, fallen short of predictions based on the postwar relation with tax cuts. Model simulations and firm-level data suggest that much of this weaker response reflects a lower sensitivity of investment to tax policy changes in the current environment of greater corporate market power. Economic policy uncertainty in 2018 played a relatively small role in dampening investment growth.


Book Synopsis U.S. Investment Since the Tax Cuts and Jobs Act of 2017 by : Emanuel Kopp

Download or read book U.S. Investment Since the Tax Cuts and Jobs Act of 2017 written by Emanuel Kopp and published by International Monetary Fund. This book was released on 2019-05-31 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment. Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA primarily as a windfall for shareholders. We find that U.S. business investment since 2017 has grown strongly compared to pre-TCJA forecasts and that the overriding factor driving it has been the strength of expected aggregate demand. Investment has, so far, fallen short of predictions based on the postwar relation with tax cuts. Model simulations and firm-level data suggest that much of this weaker response reflects a lower sensitivity of investment to tax policy changes in the current environment of greater corporate market power. Economic policy uncertainty in 2018 played a relatively small role in dampening investment growth.

The Budget and Economic Outlook

The Budget and Economic Outlook

Author:

Publisher:

Published: 2008

Total Pages: 196

ISBN-13:

DOWNLOAD EBOOK


Book Synopsis The Budget and Economic Outlook by :

Download or read book The Budget and Economic Outlook written by and published by . This book was released on 2008 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Globalization and Poverty

Globalization and Poverty

Author: Ann Harrison

Publisher: University of Chicago Press

Published: 2007-11-01

Total Pages: 675

ISBN-13: 0226318001

DOWNLOAD EBOOK

Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.


Book Synopsis Globalization and Poverty by : Ann Harrison

Download or read book Globalization and Poverty written by Ann Harrison and published by University of Chicago Press. This book was released on 2007-11-01 with total page 675 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.

Tax Cuts and Jobs Act, Conference Report to Accompany H.R. 1

Tax Cuts and Jobs Act, Conference Report to Accompany H.R. 1

Author: Congress (U S Joint Committee on Taxat

Publisher: Government Printing Office

Published: 2018-01-08

Total Pages: 182

ISBN-13: 9780160944024

DOWNLOAD EBOOK

In this report, you will find guidance about the tax rate reform legislation for working American taxpayer citizens that file Federal individual tax returns. This report outlines modifications for taxable years 2018 through 2025. Populations covered are married individuals filing joint returns and surviving spouses, head of households, unmarried individuals other than surviving spouses and heads of households, married individuals filing separate returns, estates and trusts, and more. Additionally, you will find specific tax rate information and criteria relating to deductions for qualified business income, simplification and reform of family and individual tax credits including child tax credit and new family credit, credit for elderly and permanently disabled, repeal of credit for plug-in electric drive motor vehicles, modification of deduction for home mortgage interest, modifications to the deduction for charitable contributions, reform of American opportunity tax credit and repeal of lifetime learning credit, reforms to discharge of certain student loan indebtness, repeal of deduction for student loan interest and qualified tuition and related expenses, reduction in corporate tax rate, and much more. Adult American citizens required to file Federal income taxes, small businesses and corporation owners and staff, certified public accountants, tax professionals including tax advisors and preparers, payroll staff, IRS officials and agents, members of Congress, and charitable organizations may be interested in this legislation. Students pursuing coursework in tax preparation, business accounting, tax advisory, and public finance courses may find this primary source legislation helpful for research papers and testing requirements. Related products: H.R. 1, To Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, Title A, Individual Tax Reform produced by U.S. Senate with Amendments specifically to the repeal of sections with amendments for the Internal Revenue Code of 1986 is available here: https://bookstore.gpo.gov/products/hr-1-individual-tax-reform Jobs & Employment resources collection here:https://bookstore.gpo.gov/catalog/jobs-employment Taxes, Audits & Accounting collection here:https://bookstore.gpo.gov/catalog/taxes-audits-accounting


Book Synopsis Tax Cuts and Jobs Act, Conference Report to Accompany H.R. 1 by : Congress (U S Joint Committee on Taxat

Download or read book Tax Cuts and Jobs Act, Conference Report to Accompany H.R. 1 written by Congress (U S Joint Committee on Taxat and published by Government Printing Office. This book was released on 2018-01-08 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this report, you will find guidance about the tax rate reform legislation for working American taxpayer citizens that file Federal individual tax returns. This report outlines modifications for taxable years 2018 through 2025. Populations covered are married individuals filing joint returns and surviving spouses, head of households, unmarried individuals other than surviving spouses and heads of households, married individuals filing separate returns, estates and trusts, and more. Additionally, you will find specific tax rate information and criteria relating to deductions for qualified business income, simplification and reform of family and individual tax credits including child tax credit and new family credit, credit for elderly and permanently disabled, repeal of credit for plug-in electric drive motor vehicles, modification of deduction for home mortgage interest, modifications to the deduction for charitable contributions, reform of American opportunity tax credit and repeal of lifetime learning credit, reforms to discharge of certain student loan indebtness, repeal of deduction for student loan interest and qualified tuition and related expenses, reduction in corporate tax rate, and much more. Adult American citizens required to file Federal income taxes, small businesses and corporation owners and staff, certified public accountants, tax professionals including tax advisors and preparers, payroll staff, IRS officials and agents, members of Congress, and charitable organizations may be interested in this legislation. Students pursuing coursework in tax preparation, business accounting, tax advisory, and public finance courses may find this primary source legislation helpful for research papers and testing requirements. Related products: H.R. 1, To Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, Title A, Individual Tax Reform produced by U.S. Senate with Amendments specifically to the repeal of sections with amendments for the Internal Revenue Code of 1986 is available here: https://bookstore.gpo.gov/products/hr-1-individual-tax-reform Jobs & Employment resources collection here:https://bookstore.gpo.gov/catalog/jobs-employment Taxes, Audits & Accounting collection here:https://bookstore.gpo.gov/catalog/taxes-audits-accounting

The Economics of World War I

The Economics of World War I

Author: Stephen Broadberry

Publisher: Cambridge University Press

Published: 2005-09-29

Total Pages: 363

ISBN-13: 1139448358

DOWNLOAD EBOOK

This unique volume offers a definitive new history of European economies at war from 1914 to 1918. It studies how European economies mobilised for war, how existing economic institutions stood up under the strain, how economic development influenced outcomes and how wartime experience influenced post-war economic growth. Leading international experts provide the first systematic comparison of economies at war between 1914 and 1918 based on the best available data for Britain, Germany, France, Russia, the USA, Italy, Turkey, Austria-Hungary and the Netherlands. The editors' overview draws some stark lessons about the role of economic development, the importance of markets and the damage done by nationalism and protectionism. A companion volume to the acclaimed The Economics of World War II, this is a major contribution to our understanding of total war.


Book Synopsis The Economics of World War I by : Stephen Broadberry

Download or read book The Economics of World War I written by Stephen Broadberry and published by Cambridge University Press. This book was released on 2005-09-29 with total page 363 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unique volume offers a definitive new history of European economies at war from 1914 to 1918. It studies how European economies mobilised for war, how existing economic institutions stood up under the strain, how economic development influenced outcomes and how wartime experience influenced post-war economic growth. Leading international experts provide the first systematic comparison of economies at war between 1914 and 1918 based on the best available data for Britain, Germany, France, Russia, the USA, Italy, Turkey, Austria-Hungary and the Netherlands. The editors' overview draws some stark lessons about the role of economic development, the importance of markets and the damage done by nationalism and protectionism. A companion volume to the acclaimed The Economics of World War II, this is a major contribution to our understanding of total war.

Tax Cuts and Jobs Act Impact

Tax Cuts and Jobs Act Impact

Author: Susan Flax Posner

Publisher: CCH Incorporated

Published: 2018

Total Pages: 0

ISBN-13: 9780808049937

DOWNLOAD EBOOK

Impact of Tax Cuts and Jobs Act on investments -- How the Tax Cuts and Jobs Act changed tax rates imposed on individual investors -- How the Tax Cuts and Jobs Act changed treatment of capital gains -- How the Tax Cuts and Jobs Act changed tax credits and deductions claimed by investors -- Impact of Tax Cuts and Jobs Act on real estate investments -- Impact of Tax Cuts and Jobs Act on U.S.-based multinational companies.


Book Synopsis Tax Cuts and Jobs Act Impact by : Susan Flax Posner

Download or read book Tax Cuts and Jobs Act Impact written by Susan Flax Posner and published by CCH Incorporated. This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Impact of Tax Cuts and Jobs Act on investments -- How the Tax Cuts and Jobs Act changed tax rates imposed on individual investors -- How the Tax Cuts and Jobs Act changed treatment of capital gains -- How the Tax Cuts and Jobs Act changed tax credits and deductions claimed by investors -- Impact of Tax Cuts and Jobs Act on real estate investments -- Impact of Tax Cuts and Jobs Act on U.S.-based multinational companies.