T. Scott Newlon
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NBER Working Papers and Publications
|January 1998||Has U.S. Investment Abroad Become More Sensitive to Tax Rates?|
with Rosanne Altshuler, Harry Grubert: w6383
We use data from the U.S. Treasury corporate tax files for 1984 and 1992 to address two related questions concerning the investment decisions of U.S. multinational corporations. How sensitive are investment location decisions to tax rate differences across countries, and have investment location choices become more sensitive to differences in host country tax rates? We regress a measure of the real capital held in the manufacturing affiliates of U.S. manufacturing firms in each of the 58 countries in our sample on tax rate variables and measures of non-tax characteristics of countries. The availability of two years of data allows us to control for unmeasured country fixed effects. We find large estimated tax elasticities for investment abroad. Our basic estimates yield an elasticity of...
|March 1994||Do Repatriation Taxes Matter? Evidence from the Tax Returns of U.S. Multinationals|
with Rosanne Altshuler, William C. Randolph: w4667
An open question in the literature on the taxation of multinational corporations is whether repatriation taxes influence whether the profits of foreign subsidiaries are repatriated or reinvested abroad. Theoretical models suggest that dividend remittances should not be influenced by repatriation taxes. The results of recent empirical work indicate that dividend remittances are sensitive to repatriation taxes. This paper investigates whether the empirical evidence can be reconciled with the theoretical results by recognizing that repatriation taxes on dividends may vary over time and provide firms with an incentive to time repatriations so that they occur in years when repatriation tax rates are relatively low. We use information about cross-country differences in tax rates to separatel...
Published: The Effects of Taxation on Multinational Corporations, eds. Martin Feldstein, James R. Hines, Jr. and R. Glenn Hubbard; University of Chicago Press, 1995.
|January 1993||The Effects of U.S. Tax Policy on the Income Repatriation Patterns of U. S . Multinational Corporations|
with Rosanne Altshuler, Joel Slemrod
in Studies in International Taxation, Alberto Giovannini, R. Glenn Hubbard, and Joel Slemrod, editors
|December 1991||The Effects of U.S. Tax Policy on the Income Repatriation Patterns of U.S. Multinational Corporations|
with Rosanne Altshuler: w3925
U.S. corporations owe taxes to the U.S. Treasury on income earned both inside and outside American borders. This paper examines the incentives created by the U.S. tax system for the legal avoidance of taxes on foreign source income. Using data from 1986 corporate tax returns, we investigate the extent to which U.S. corporations structure and coordinate remittances of income from their foreign subsidiaries to reduce their U.S. and foreign tax liabilities. In contrast to previous work in this area, our estimates of the tax consequences of income remittances from foreign subsidiaries to parent corporations explicitly take into account the ability to use foreign tax credits generated from one source of foreign income to offset the U.S. tax liability generated by other sources of foreign income...
Published: Studies in International Taxationedited by Alberto Giovannini, R. Glenn Hubbard, and Joel Slemrod University of Chicago Press; May 1993