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An International Tax Agenda for Congress on the Anniversary of the Global Tax Deal

Key Findings A year since the global tax deal was agreed to by more than 130 countries, progress on implementing legislation has hit a lull. Implementation of the minimum tax rules is not expected until the end of 2023 or in 2024. Since the 2017 U.S. tax reforms and other recent international rules changes, onshoring […]

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How FDI Adds Value to Supply Chains

The COVID-19 pandemic brought increased attention to U.S. global supply chains, as the pandemic impacted critical components within U.S. manufacturing. The attention has led to calls to structure U.S. tax policy to encourage firms to expand their manufacturing capacity in the U.S., under the belief domestic supply chains are inherently less risky than global ones. […]

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4 Things to Know About the Global Tax Debate

The taxation of large companies has been in the spotlight recently as governments around the world have sought to make significant changes to how corporate profits are taxed in a global economy. Last year more than 130 jurisdictions agreed to an outline of policies that would change where companies pay taxes and institute a global […]

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Why FDI Matters for U.S. Employment, Wages, and Productivity

The Biden administration has offered several proposals to reform the taxation of U.S. multinationals, addressing profit shifting as well as a broader view that offshoring is bad for the U.S. economy and firms should be encouraged to “reshore” as much activity to the United Sates as possible. Contrary to the Biden administration’s claims, raising taxes […]

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Biden’s FY 2023 Budget Would Result in $4 Trillion of Gross Revenue Increases

This week, Treasury Secretary Janet Yellen will testify before the Senate Finance Committee and the House Ways and Means Committee on President Biden’s Fiscal Year 2023 Budget Proposals. Combined with the tax increases in the Build Back Better Act (BBBA), which the budget assumes becomes law, President Biden would raise revenues by $4 trillion on […]

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Public and Private R&D are Complements, Not Substitutes

Congress is hammering out the details of legislation designed to make the U.S. more competitive with China. Any package to incentivize further R&D should begin by ending the current tax penalty against it.   While the House and Senate-passed versions of the competitiveness legislation differ, they would support American semiconductor manufacturing, increase public funding for […]

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U.S.-China Trade War Hurt American Industries and Workers

In light of high inflation and rising prices, the Biden administration announced it’s considering dropping its current tariffs on Chinese imports to ease inflationary pressures. The tariffs have indeed hurt both U.S. industry and workers. Another consequence of the U.S. imposed tariffs is that they invited retaliatory tariffs, primarily from China, on U.S. exports. Retaliatory […]

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Comparing the Corporate Tax Systems in the United States and China

Key Findings Federal policymakers are debating a legislative package focused on boosting U.S. competitiveness vis-a-vis China; however, it currently contains little to no improvements to the U.S. tax code. The existing U.S. tax code is biased against capital investment and it is scheduled to worsen over the next decade. The tax bias against domestic investment […]

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The Misguided Notion of Government-Set Prices for Prescription Drugs

A centerpiece of the Build Back Better Act (BBBA) as passed by the House last year was drug pricing legislation, which could be included in the next version of the BBBA, now rebranded as an inflation-control, climate, and deficit-reduction bill. While headline inflation is at an alarming rate, with the most recent 12-month reading at […]

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President Biden’s 61 Percent Tax on Wealth

As part of President Biden’s proposed budget for fiscal year 2023, the White House has once again endorsed a major tax increase on accumulated wealth, adding up to a 61 percent tax on wealth of high-earning taxpayers. Biden’s latest budget includes two major tax increases on accumulated wealth originally proposed in last year’s American Families […]