The Taxation of Multinational Corporations

1. Front Matter

   Pages i-v

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2. Introduction

   • Joel Slemrod

   Pages 1-2

3. U.S. Interest-Allocation Rules: Effects and Policy

   • Rosanne Altshuler, Jack M. Mintz

   Pages 3-31

4. The Compliance Cost of Taxing Foreign-Source Income: Its Magnitude, Determinants, and Policy Implications

   • Marsha Blumentha, Joel B. Slemrod

   Pages 33-49

5. Corporate Domicile and Average Effective Tax Rates: The Cases of Canada, Japan, the United Kingdom, and the United States

   • Julie H. Collins, Douglas A. Shackelford

   Pages 51-79

6. The Impact of Tax on Foreign Direct Investment: Empirical Evidence and the Implications for Tax Integration Schemes

   • Michael P. Devereux, Harold Freeman

   Pages 81-102

7. What Do We Know About the Impact of Offshore Investment on the U.S. Economy?

   • Edward E. Leamer

   Pages 103-132

8. Free Trade Taxation and Protectionist Taxation

   • Joel B. Slemrod

   Pages 133-151

9. Back Matter

   Pages 153-157

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The six papers in this vohune represent state-of-the-art empirical and conceptual research on various aspects of the taxation of multinational corporations. They were commissioned for and presented at a conference organized by Price Waterhouse LLP on behalf of the International Tax Policy Forum, held in Washington, DC in March, 1994. The ftrst four papers were originally published in the May, 1995 issue of International Tax and Public Finance. The Slemrod paper appeared in the Policy Watch Section of the November, 1995 issue of that journal. The foregoing papers were subject to the normal refereeing procedures of the journal, and the summaries that follow are drawn from there. The Leamer paper has not been previously published. Altshuler and Mintz examine one aspect of the 1986 u. s. Tax Reform Act --the change in the rules for the allocation of interest expense between domestic-(U. S. ) and foreign-source income. In the absence of rules, a parent with excess credits could reduce U. S. tax liability by allocating interest expense toward itself; thus reducing its taxable domestic income without any compensating increase in either the U. S. tax due on foreign-source income or the foreign tax due (which is independent of U. S. rules).

• Finance
• Investment
• public finance
• taxation

• Office of Tax Policy Research, University of Michigan Business School, USA

  Joel Slemrod

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