NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Michael P. Devereux

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

Books

Trans-Atlantic Public Economics Seminar
with Roger Gordon
Conference held June 20-22, 2012
Forthcoming from (American Economic Association) American Economic Journal: Economic Policy, May 2014

Working Papers and Chapters

October 2013Consumption and Cash-Flow Taxes in an International Setting
with Alan J. Auerbach: w19579
We model the effects of consumption-type taxes which differ according to the base and location of the tax. Our model incorporates a multinational producing and selling in two countries with three sources of rent, each in a different location: a fixed basic production factor (located with initial production), mobile managerial skill, and a fixed final production factor (located with consumption). In the general case, we show that for national governments, there are trade-offs in choosing between alternative taxes. In particular, a cash-flow tax on a source basis creates welfare-impairing distortions to production and consumption, but is partially incident on the owners of domestic production who may be non-resident. By contrast, a destination-based cash-flow tax does not distort behavior, b...
July 2012How Would EU Corporate Tax Reform Affect US Investment in Europe?
with Simon Loretz
in Tax Policy and the Economy, Volume 26, Jeffrey Brown, editor
November 2011How Would EU Corporate Tax Reform Affect US Investment in Europe?
with Simon Loretz: w17576
This paper examines the likely impact of a proposed formula apportionment system for corporation tax in the EU on the inbound investment of US multinational companies. We pay attention to tax planning strategies that may be employed by US multinationals and investigate whether effective tax rates in Europe of US companies differ from those of European companies. The proposal is for an optional system: we estimate the extent to which both European and US companies would be likely to choose it taking into account their existing structures and future investment incentives. The relative position of US and European companies depends crucially on the taxation of foreign passive income.
November 2008Taxing Corporate Income
with Alan J. Auerbach, Helen Simpson: w14494
Following Meade (1978), we reconsider issues in the design of taxes on corporate income. We outline developments in economies and in economic thought over the last thirty years, and investigate how these developments should affect the design of taxes on corporate income. We consider a number of tax systems which have been proposed, distinguishing them in two main dimensions: the definition of what is to be taxed, and where it is to be taxed. We suggest that a tax levied on economic rent accruing in the corporate sector, and on a destination basis, merits serious consideration. We discuss alternative approaches, including both R-based and R+F-based flow-of-funds taxes and an ACE allowance. It is the destination basis -- with border adjustments for exports and imports -- which primarily dist...

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

 
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