Issues posed by Senator Warren's Real Corporate Profits Tax

Here is a list of some of the main issues that I see as being posed by Senator Warren's Real Corporate Profits Tax (RCPT) proposal:1) How high should the overall effective corporate tax rate be? – Adopting the proposal, against the steady state background of current US. corporate income tax law, would affect the overall effective U.S. tax rate faced by companies subject to the tax. Included in this are the effective tax rate on U.S. companies' foreign source income (outbound), and on foreign corporations investing in the U.S. (inbound, insofar as the provision applies to them). These aspects are of course distinguishable from each other, at least in principle.Broadly speaking, any overall effective tax rate on any of these aspects could be accomplished with or without the RCPT.  (Of course, exactly who and what will pay how much inevitably depends on the mix that is employed between the existing corporate tax and the new proposed instrument.) But while…

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