What People Are Saying

What People Are Saying About Sales Factor Apportionment:

“‘There are still large incentives and big possibilities for firms to shift profits to low-tax places,’ Mr. Zucman said in an interview.”...“Mr. Zucman said the research points toward a system that bases corporate income taxes on the location of sales.”

— Rubin, Richard. Corporations Push Profits Into Tax Havens as Countries Struggle in Pursuit, Study Says, WSJ, June 10, 2018

“The authors of the (Tax Cut and Jobs Act)... said their bill would discourage the shifting of profits earned in the United States. But the principal anti-tax avoidance measures introduced still allow companies to benefit strongly from profit shifting.” — Erman, Michael, Bergin, Tom, How U.S. tax reform rewards companies that shift profit to tax havens. Reuters, June 18, 2018

“(Sales Factor Apportionment) is a far simpler and more effective way to counter income stripping because it avoids a destructive race to the bottom and is the most competitive tax system at any reasonable rate.” — Parks, Bill. A Better Alternative For Corporate Tax Reform. Tax Notes Vol. 127, No. 11, Dec. 11, 2017

“... advanced countries are underestimating economic growth and undercollecting corporate tax revenues, because they are missing the profits that have been shifted on paper by multinational corporations.” — Tankersley, Jim. Tax Havens Blunt Impact of Corporate Tax Cut, Economists Say. NY Times, June 10, 2018

“Because the GILTI provision (of TCJA) was layered on top of older tax laws, it operates like ‘a truck built on a car chassis,’ said Michael Graetz, a Columbia Law School professor and former Treasury” — Rubin, Richard. Proposed rules meant to prevent corporate disadvantages while also avoiding the opening up of new tax-reduction strategies, WSJ June 4, 2018

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