Monday, September 18, 2017
Joseph Bankman (Stanford) presents Collecting the Rent: The Global Battle to Capture MNE Profits (with Mitchell Kane (NYU) & Alan Sykes (Stanford)) at Loyola-L.A. today as part of its Tax Policy Colloquium Series hosted by Ellen Aprill and Katherine Pratt:
Multinational enterprises (MNEs) earn substantial rents in the current global economy. Governments have an interest in capturing some of these rents for their citizens or national treasuries, and regularly pursue policies to that end. Some rents are realized in the country in which the MNE is headquartered and domiciled. In theory, at least, that country (the "resident country") can collect these rents through its power to tax or regulate. Other rents are realized in nations outside that of the MNE's residence. Collection of these rents by nations in which the MNE operates, but does not reside, has proven more difficult.
This paper offers a comparative assessment of the policy instruments that governments might employ to collect a share of rents from non-resident MNE's that operate within their borders. We begin with tax instruments, but expand our analysis to antitrust policy, state-owned enterprises, price regulation, and various instruments of trade policy. Our goal is to identify the strengths and weaknesses of different instruments in different contexts. A related goal is to identify the circumstances in which we might find these instruments used.
The commentators are Jeffery Atik & Theodore Seto (Loyola-L.A.).