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Moving to Territoriality? Implications for the United States and the Rest of the World

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  • Mr. Peter J. Mullins

Abstract

This paper reviews the tax policy debate in the United States on the move of the corporation tax from its present worldwide basis to a territorial basis, and considers the implications for the United States and the rest of the world. It finds that there is no clear view on whether the move would significantly benefit the United States. Such a move, however, could have significant implications for the rest of the world in terms foreign direct investment (FDI) from the United States, the intensity of tax competition, and tax revenues.

Suggested Citation

  • Mr. Peter J. Mullins, 2006. "Moving to Territoriality? Implications for the United States and the Rest of the World," IMF Working Papers 2006/161, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/161
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    Cited by:

    1. Mr. Thomas Dalsgaard, 2008. "Japan’s Corporate Income Tax—Overview and Challenges," IMF Working Papers 2008/070, International Monetary Fund.
    2. Daragh Clancy, 2019. "US corporate tax rate cuts: Spillovers to the Irish economy," Working Papers 38, European Stability Mechanism.
    3. Tajika, Eiji & 田近, 栄治 & Nakatani, Ryota & 中谷, 亮太, 2008. "Welcome Home to Japan: Repatriation of Foreign Profits by Japanese Multinationals," Discussion Papers 2008-04, Graduate School of Economics, Hitotsubashi University.
    4. Mr. Nigel A Chalk & Mr. Michael Keen & Ms. Victoria J Perry, 2018. "The Tax Cuts and Jobs Act: An Appraisal," IMF Working Papers 2018/185, International Monetary Fund.

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