Options for Taxing U.S. Multinational Corporations.

摘要

In 2008, 12 percent of all federal revenues came from corporate income taxes; about half was paid by multinational corporations reporting income from foreign countries.1 How the federal government taxes U.S. multinational corporations has consequences for the U.S. economy overall as well as for the federal budget. Tax policies influence businesses choices about how and where to invest, particularly as corporations assess whether it is more profitable to locate business operations in the United States or abroad. The tax laws also can create opportunities for tax avoidance by allowing multinational corporations to use accounting or other legal strategies to report income and expenses for their U.S. and foreign operations in ways that reduce their overall tax liability. U.S tax revenues decline when firms move investments abroad or when they strategically allocate income and expenses to avoid paying taxes here.