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Implications of the US tax reform for transatlantic FDI

On 22 December 2017 President Trump signed the Tax Cuts and Jobs Act. This corporate tax reform can be considered the most signifi cant amendment of the US corporate tax code since 1986. Besides the reduction of the corporate income tax rate from 35% to 21%, the Tax Cuts and Jobs Act entails feature...

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Bibliographic Details
Main Authors: Heinemann, Friedrich (Author) , Olbert, Marcel (Author) , Pfeiffer, Olena (Author) , Schwab, Thomas (Author) , Spengel, Christoph (Author) , Stutzenberger, Kathrin (Author)
Format: Article (Journal)
Language:English
Published: März 2018
In: Intereconomics
Year: 2018, Volume: 53, Issue: 2, Pages: 87-93
ISSN:1613-964X
DOI:10.1007/s10272-018-0727-6
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Aufsatz in Zeitschrift
Online Access:Resolving-System, kostenfrei, Volltext: http://hdl.handle.net/10419/177427
Resolving-System, kostenfrei, Volltext: https://doi.org/10.1007/s10272-018-0727-6
Verlag, kostenfrei, Volltext: https://link.springer.com/content/pdf/10.1007%2Fs10272-018-0727-6.pdf
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Author Notes:Friedrich Heinemann, Marcel Olbert, Olena Pfeiffer, Thomas Schwab, Christoph Spengel and Kathrin Stutzenberger
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Summary:On 22 December 2017 President Trump signed the Tax Cuts and Jobs Act. This corporate tax reform can be considered the most signifi cant amendment of the US corporate tax code since 1986. Besides the reduction of the corporate income tax rate from 35% to 21%, the Tax Cuts and Jobs Act entails features like a switch from worldwide income taxation to territorial taxation, as well as immediate deductions for certain assets. This leads to a substantial improvement for the US in global tax competition. In this paper, we analyse the effects of the US tax reform on FDI fl ows between Europe and the US. We find that European high-tax countries in particular will suffer from a net outfl ow of FDI.
Physical Description:Online Resource
ISSN:1613-964X
DOI:10.1007/s10272-018-0727-6

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