Apr 5, 2017
Ted Citrome quoted in Lexpert Magazine on Tax Competition Returns
There’s little doubt that heightened international tax competition would have enormous implications for this country — and, indeed, the games seem to have already begun. The United Kingdom’s corporate tax rate, which was 28 per cent in 2010, now stands at 19 per cent and is set to drop to 17 per cent by 2020.
The arguments against BAT are varied and numerous: even the Republican tax reform blueprint concedes that BAT might be a violation of international law. Prominent economists have testified and written that BAT will do nothing for the balance of trade because the US dollar would automatically appreciate, making exports from that country more expensive for foreign purchasers and imports cheaper. “The consensus view among economists seems to be that the new rules are unlikely to accomplish their protectionist objectives,” Citrome says.
This article originally appeared on Lexpert. To read the complete article, visit Lexpert online.