Thursday, September 27, 2012
The U.K. coalition government set out a high-level, five-year corporate tax reform road map in its 2010 budget, aiming to create the most competitive corporate tax regime in the G20. Exchequer Secretary to the Treasury David Gauke has stated that the U.K. government is prioritizing corporate tax reform to make the tax system a U.K. asset once again.
To date, the U.K. has (1) reduced its corporate tax rate from 28% to 24%, with a further reduction to 22% scheduled by 2014; (2) adopted a participation exemption ("territorial") regime for the taxation of foreign affiliate earnings; (3) increased deductions for research and development (R&D) and set out plans to allow all enterprises to convert excess R&D deductions into refundable credits; and (4) beginning in 2013, will reduce the tax rate on qualified patent income to 10%.
Separate U.S. corporate tax reform proposals have been set forth by President Obama and the House Ways and Means Committee Chairman David Camp, but no legislative action has been taken to date. This conference will assess the U.K. corporate tax reform program and consider whether it is a suitable model for the United States.
- Opening Remarks: Alan Viard (American Enterprise Institute), John Samuels (General Electric)
- U.K. Corporate Tax Road Map: Will Morris (General Electric), David Gauke (Her Majesty’s Treasury, U.K.)
- Should U.S. Tax Reform Follow the U.K. Model?: Michael Devereux (Oxford University), Dick Gephardt (Gephardt Government Affairs), James Hines (University of Michigan), Stephen Shay (Harvard Law School), Martin Sullivan (Tax Analysts)