Although many are calling for Congress to reform the broken corporate tax system, agreement on fixes remains elusive. A compromise is needed — a reform acceptable to business and to lawmakers across the political spectrum. Almost three years ago, in testimony before the Senate Homeland Security and Governmental Affairs Permanent Sub-committee on Investigations, Apple Inc. proposed that Congress pass legislation dramatically simpli- fying the U.S. corporate tax system.
A full review of the problems with the current corporate tax code and an in-depth explanation as to why Sales Factor Apportionment must be the tax reform solution for the U.S. The Author, Michael Stumo, is the Chief Executive Officer of Coalition for A Prosperous America.
This paper examines corporate tax income and exposes the methodology by which the major conglomerates avoid paying the taxes domestic competitors must pay. While this study examines three factor formulary apportionment in significant detail, it provides much needed context into the history of apportionment amongst the U.S. states.
Sales Factor Apportionment of Global Profits as an Alternative Construction of a Corporate Income Tax Base
The most comprehensive study on Sales Factor Apportionment to date. Prior studies have only considered Sales Factor as a part of formulary apportionment. Udell and Vashist delve into the deep analysis of what Sales Factor Apportionment would do for the Federal Budget and why it is much more difficult to fake data.
Embracing a worldwide solution to corporate tax evasion, this paper is a response to the tactics of considering subsidiaries to be separate entities for tax purposes from the parent companies. Unitary Tax reporting would require the information to be collected and shared between other nations. This is particularly beneficial for developing nations. Sales Factor Apportionment does not rely on this system to get an accurate picture of corporate profits, but it is a goal in overall reform worth noting.
This report takes a hard look at the real world consequences of tax avoidance and makes strong recommendations to be implemented by the nations of the world. It is also useful in truly understanding how antiquated the current system has become and what that really means for our citizens.