Barriers to Mobility: The Lockout Effect of U.S. Taxation of Worldwide Corporate Profits
Author(s)Graham, John R.; Hanlon, Michelle; Shevlin, Terry
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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.
DepartmentSloan School of Management
National Tax Journal
National Tax Association
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.
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