Grupos de Investigación |
Seminario IECON: "Repatriation taxes"Presenta Julio Garín (Robert Day School of Economics and Finance Claremont McKenna College) en co-autoría con C. Curtis y M. S. Mehkari
"Repatriation taxes" Abstract We present a model of a multinational firm to quantify the effects of policy changes to repatriation tax rates -- taxes that firms pay on profits remitted from abroad. The framework captures the dynamic responses of the firm from the time a policy change is anticipated through its enactment, including its long-run effects. We find that failing to account for anticipatory behavior surrounding a reduction in repatriation tax rates overstates the amount of profits repatriated from abroad and underestimates tax revenue losses. We further show that policy changes have a relatively small impact on hiring and investment decisions if firms have relatively easy access to credit markets -- as is the case for most multinational firms. Finally, by altering the relative price of holding assets abroad, news of a future reduction in repatriation tax rates acts as an implicit tax on repatriating funds today. We capture and quantify this "shadow tax." Jueves 9/8/2018 15 hs, salón Multifuncional Facultad de Ciencias Económicas y de Administración |