• Write-Off: The Tax Blog

    Congress Should Listen to the Right Experts—Taxing Book Income is a Bad Idea

    People often form strong, uninformed opinions on issues that actually require expertise to really understand. Tax policy is no different. One of the common laments about the Tax Cuts and Jobs Act (the TCJA--the Trump tax cut) in the academic tax circles in which I work was that it was all done behind closed doors, with little input from experts. In 1986 when the code was previously majorly overhauled, there were many hearings, testimonies, and more than a year of back and forth before the bill was passed. The TCJA was passed in a few short months, with little external expert input. Many in the tax community mourned the lack of dialogue about the TCJA. But, with all the handwringing about the lack of expert input about the issues back then, Democrats seemed bound and determined to repeat the experience again, pushing through an incredibly complex piece of legislation before it is well understood, or well vetted. The posterchild for this problem is the minimum tax on book income.
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January 31, 2021

What do we know about CbC Reporting?

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Recent News & Media

Ed Maydew participates at the Ph.D. Project’s Annual Conference and Application

December 01, 2021

Ed Maydew, Senior Executive Director of the Tax Center spoke at the UNC Ph.D. Project Conference on November 18th. It is a three-day networking conference, connecting doctoral students, business school representatives, professors and sponsor organizations. More

Coming Up

Demystifying Blockchain & Cryptocurrency

Wednesday December 8, 2021

Join us for this 4th in a series of webcasts jointly hosted by the UNC Tax Center and the AICPA. UNC’s Tax Center Leadership Council members Louise Reed and Ed Cook will join UNC economics and finance professor Eric Ghysels to help unravel the mysteries of blockchain and discuss the practical implications this technology is having on accounting and business. More

 

TCJA Effects Tracker

The Effects of the U.S. Tax Reform on Investments in Low-Tax Jurisdictions – Evidence from Cross-Border M&As

September 28, 2021

This paper examines the effects of the 2017 U.S. tax reform, commonly known as the ‘Tax Cuts and Jobs Act’ [TCJA] on cross-border M&As of U.S. acquirers. The TCJA replaced the U.S. worldwide tax system by a territorial system, albeit with one important exception: the ‘Global Intangible Low-Taxed Income’ [GILTI] provision. Our results suggest that the outbound acquisition pattern changed significantly for those U.S. acquirers that are affected by the new GILTI provision. GILTI-affected firms acquire targets in low-tax countries and tax havens significantly less often after the TCJA. We also provide weak evidence that U.S. firms not affected by the GILTI regime acquire more often targets in low-tax countries and tax havens. More