A symposium on business tax reform

Source: Alan Auerbach, Martin Feldstein, Gita Gopinath, and James Hines, Brookings Papers on Economic Activity (BPEA), September 7, 2017

The U.S. corporate tax rate is one of the highest in the world and much has been made about the prospects of corporate tax reform in 2017. Both House Republicans and President Trump have released their visions of changes to corporate taxes. But what would these proposals mean for the economy? Are they targeting the aspects of the tax code that need changing?

At the Fall 2017 Brookings Papers on Economic Activity conference, leading tax policy experts discussed these issues among others, including:

Alan Auerbach, of the University of California, Berkeley, attempts to demystify the Destination-Based Cash-Flow Tax (DBCFT), which he says is poorly understood by many in government, the business community, and economics.

Martin Feldstein, of Harvard University, argues the coming year offers the opportunity to fix problems of the corporate tax system that accumulated over many decades and suggests five areas for improvement.

Gita Gopinath, of Harvard University, examines the macroeconomic effects of a border-adjustment tax and looks at whether its possible for a border adjustment tax to be revenue neutral.

James Hines, of the University of Michigan, looks at the U.S. corporate tax rate, which is the highest among OECD countries, and finds that despite significant deductions and exclusions, the rate places high burdens on U.S. businesses.