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Treasury’s Latest Pillar 1 Proposal: A Strategy to Split the Riches or Give Away the Store?

For the past two years, the Organisation for Economic Co-operation and Development (OECD) has been debating how to change the tax treatment of large multinationals so that countries can tax corporate profits not just where their headquarters, employees, and assets are but also where a company’s customers are located. The implications of such a change […]

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Can GILTI and the GloBE be Harmonized in a Biden Administration?

Was this page helpful to you? Thank You! The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work? Contribute to the Tax Foundation Share This Article! Let us know how we can better serve you! […]

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Join Us for a Free “State Tax Policy Boot Camp”

We’re about to launch a free six-week course in state taxation, and we’d like you to join us. This coming Tuesday, February 16th, the Tax Foundation will kick off its “State Tax Policy Boot Camp,” designed with lawmakers and legislative staff in mind, but ideal for anyone interested in gaining a better understanding of state […]

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An “Interest”ing Tax Hike in the COVID-19 Relief Proposal

As the House Ways and Means Committee continues working on the latest round of fiscal relief amid the pandemic, one curious provision in the legislation is a tax hike on multinational companies. One section of the legislation would repeal a provision in current law that allows U.S. multinationals to choose to allocate their interest costs […]

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Comparing Europe’s Tax Systems: International Tax Rules

Today’s map looks at how European OECD countries rank on international tax rules and is the last in our series examining each of the five components of our 2020 International Tax Competitiveness Index (ITCI). International tax rules define how income earned abroad and by foreign entities are taxed domestically, making them an important element of […]

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Pillars, Blueprints, an Impact Assessment, and Construction Delays

Monday, the OECD released blueprints for proposals on changing international tax rules alongside an impact assessment based on the overall design of the proposals. While the blueprints cover proposals both for changing where large multinationals owe corporate tax and designing a global minimum tax, there are still many unanswered questions. The OECD has been working […]

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Biden’s Plan to Address Offshoring Comes with Contradictions

Today, the Biden campaign is set to release its plans for changing U.S. cross-border tax rules. It includes several proposals with the shared goal of increasing taxes on U.S. multinational companies and attracting new investment to the U.S, although there is a tension between those goals. The campaign’s proposals for higher taxes on U.S. businesses […]

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Thin-Cap Rules in Europe

High-tax countries create an incentive for companies to finance investments with debt because interest payments are tax-deductible, which is usually not the case for equity costs. This encourages global businesses to lend money internally from entities in low-tax countries to entities in high-tax countries. Tax savings in high-tax countries can exceed the increased tax paid […]