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Tuesday, November 1, 2011

Avi-Yonah: The Effective Tax Rate of the Largest US and EU Multinationals

Reuven S. Avi-Yonah (Michigan) & Yaron Lahav (Ben-Gurion University), The Effective Tax Rate of the Largest US and EU Multinationals:

This paper compares the effective tax rates of the 100 largest US multinationals to the 100 largest EU multinationals for the period 2001-2010, based on financial disclosures. The paper finds that despite the higher US statutory rate the effective tax rates are comparable and that EU multinationals tend to have a higher effective tax rate. The likely explanation is that EU corporate taxes have a broader base. The paper concludes that current US tax law does not subject US based multinationals to a competitive disadvantage against their EU based competitors.

http://taxprof.typepad.com/taxprof_blog/2011/11/avi-yonah-lahav.html

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Comments

But when a business is looking to where to grow, when they investigate the tax aspect (among the many factors making up the decision) will they look to papers like this? Or at the statutory rates?

Posted by: daniel | Nov 2, 2011 5:53:36 AM