Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits
Using data from a survey of tax executives, we examine the corporate response to the one-time dividends received deduction in the American Jobs Creation Act of 2004. We describe the firms’ reported sources and uses of the cash repatriated and we also examine non-tax costs companies incurred to avoid...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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National Tax Association
2014
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| Online Access: | http://hdl.handle.net/1721.1/87724 https://orcid.org/0000-0002-7009-1310 |
| _version_ | 1826189166705115136 |
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| author | Graham, John R. Hanlon, Michelle Shevlin, Terry |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Graham, John R. Hanlon, Michelle Shevlin, Terry |
| author_sort | Graham, John R. |
| collection | MIT |
| description | Using data from a survey of tax executives, we examine the corporate response to the one-time dividends received deduction in the American Jobs Creation Act of 2004. We describe the firms’ reported sources and uses of the cash repatriated and we also examine non-tax costs companies incurred to avoid the repatriation tax prior to the Act. Finally, we examine whether firms would repatriate cash again if a similar Act were to occur in the future. Overall, the evidence is consistent with a substantial lockout effect resulting from the current U.S. policy of taxing the worldwide profits of U.S. multinationals. |
| first_indexed | 2024-09-23T08:10:35Z |
| format | Article |
| id | mit-1721.1/87724 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:10:35Z |
| publishDate | 2014 |
| publisher | National Tax Association |
| record_format | dspace |
| spelling | mit-1721.1/877242022-09-30T08:04:25Z Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits Graham, John R. Hanlon, Michelle Shevlin, Terry Sloan School of Management Hanlon, Michelle Using data from a survey of tax executives, we examine the corporate response to the one-time dividends received deduction in the American Jobs Creation Act of 2004. We describe the firms’ reported sources and uses of the cash repatriated and we also examine non-tax costs companies incurred to avoid the repatriation tax prior to the Act. Finally, we examine whether firms would repatriate cash again if a similar Act were to occur in the future. Overall, the evidence is consistent with a substantial lockout effect resulting from the current U.S. policy of taxing the worldwide profits of U.S. multinationals. Fuqua School of Business (Duke University) Michigan Ross School of Business (Paton Accounting Fund) University of Washington (Paul Pigott/PACCAR Professorship) 2014-06-10T19:15:32Z 2014-06-10T19:15:32Z 2010-12 Article http://purl.org/eprint/type/JournalArticle 0028-0283 1944-7477 http://hdl.handle.net/1721.1/87724 Graham, John R., Michelle Hanlon, and Terry J. Shevlin. "Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits." National Tax Journal (December 2010) 63 (4, Part 2), 1111–1144. https://orcid.org/0000-0002-7009-1310 en_US http://ntj.tax.org/ National Tax Journal Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf National Tax Association SSRN |
| spellingShingle | Graham, John R. Hanlon, Michelle Shevlin, Terry Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title | Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title_full | Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title_fullStr | Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title_full_unstemmed | Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title_short | Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits |
| title_sort | barriers to mobility the lockout effect of u s taxation of worldwide corporate profits |
| url | http://hdl.handle.net/1721.1/87724 https://orcid.org/0000-0002-7009-1310 |
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