Wednesday, January 31, 2007
Julie Roin (Chicago) presents Does Formulary Taxation Work?: What International Tax Scholars Can Learn from State Taxation at the University of Toronto today as part of the James Hausman Tax Law and Policy Workshop Series. Here is the abstract:
The corporate, and perhaps even individual, income tax will not long survive as an effective revenue raising device unless and until countries devise an effective method of taxing the domestic income of foreign corporations. An increasing number of academics, and certainly EU bureaucrats, believe that the solution is the replacement of current arm’s length, separate entity based taxing regimes with unitary formulary taxation. The paper examines the prospects for success of formulary taxing regimes by looking at the experiences of the states of the United States, which have operated such regimes, and of the United States, in its operation of the subpart F regime.