The Future of the Corporate Tax

The Future of the Corporate Tax

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Recent calls for increased entity-level corporate income taxation of multinationals, on both a source and a residence basis, have a distinctly back-to-the-future cast. At least as to the bottom line, they have far more in common with 1986-era thinking than with which has often prevailed in more recent decades. However, their intellectual basis has substantially changed, reflecting the evolution of economic thinking to reflect twenty-first century trends. This historical back-and-forth has ample parallels in other areas, and precedents from earlier eras. In corporate and international tax policy, as well as with regard to taxing capital income and addressing high-end inequality more generally, the rise of standard neoclassical Econ 101 precepts that, in the preceding period, had been underappreciated was succeeded by a growing awareness of what those precepts leave out. Meanwhile, the popular back-and-forth has reflected fluctuating public perceptions regarding, not just the importance of distributional issues, but also unfettered free market capitalism’s merits and performance.

Source Publication

Research Handbook on Corporate Taxation

Source Editors/Authors

Reuven S. Avi-Yonah

Publication Date

2023

The Future of the Corporate Tax

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