The Effects of the Tax Cuts and Jobs Act on the Tax-Competitiveness of Multinational Corporations
The authors in this paper exploit the 2017 US tax reform to learn about the tax-competitiveness of US multinational corporations relative to their international peers. They compare pairs of similar US and European firms listed on the S&P500 or StoxxEurope600. Their results suggest significantly lower effective tax rates of US MNCs compared to their European competitors after the US tax reform. They provide evidence that US MNCs already successfully engaged in international tax planning prior to the reform, and this behavior is unchanged after the tax reform.
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About the author
Michael Overesch, Leon G. A. Reichert, & Georg Wamser