Recent News & Media
Cryptocurrency Investor Losses Are Turned into IRS Gains
December 07, 2022Ed Maydew recently presented his working research paper at the 2022 Journal of Accounting and Economics Conference held at UNC on October 13-15, 2022. More
CbC Reporting
What do we know about CbC Reporting?
January 31, 2021In 2015, to address the lack of data and transparency on corporate taxation and firm tax avoidance strategies, the Organization for Economic Co-operation and Development (OECD) released the Base Erosion and Profit Shifting (BEPS) Action 13 Report which established the annual Country-by-Country Reporting (CbCR) guidelines for multinational enterprises (MNEs). More
TCJA Effects Tracker
The Effect of the Tax Cuts and Jobs Act on Foreign Investment of U.S. Multinational Corporations
October 28, 2022This study examines the effect of the 2017 Tax Cuts and Jobs Act (TCJA) on capital investment, labor investment, and the productivity of foreign subsidiaries of U.S. multinational corporations (MNCs). Proponents of the TCJA argue it decreased foreign investment by leveling the playing field between U.S. MNCs and foreign-owned corporations. However, policymakers are currently debating international tax reform, arguing that the TCJA incentivizes foreign investment. My study informs this debate by providing empirical evidence on the TCJA’s effect on foreign investment and productivity. Using a difference-in-differences design, I find that after the TCJA, U.S.-owned foreign subsidiaries invest 13.1 percent less in capital and 1.3 percent less in labor relative to subsidiaries owned by non-U.S. MNCs. I also find these reductions are positively associated with subsidiary-level productivity, suggesting that the TCJA alleviates inefficiencies of the previous tax regime. More