A new proposal for corporate tax reform: Joint event between AEI and the Urban-Brookings Tax Policy Center
Friday, June 17, 2016 | 9:00 am to 10:30 am EDT
AEI, Twelfth Floor
1150 Seventeenth Street, NW
Washington, DC 20036
AEI, Twelfth Floor
1150 Seventeenth Street, NW
Washington, DC 20036
At Friday morning’s joint event between AEI and the Urban-Brookings Tax Policy Center, AEI’s Alan D. Viard and the Tax Policy Center’s Eric Toder presented their proposal to reduce the corporate income tax and supplement it with taxes on dividend and equity returns at shareholders’ income tax rates.
After describing the distortions and inefficiencies of the existing corporate tax system, Dr. Viard explained the details of the proposal, including a corporate income tax rate reduction to 15 percent, the taxation of dividends and returns earned by domestic shareholders as regular income, mark-to-market accounting, and detailed provisions to address market volatility. Dr. Toder discussed the proposal’s effects on federal revenue, its more progressive distributional impact, the long-term economic effects, and potential responses of foreign governments.
Following the presentation, New York University School of Law’s Daniel N. Shaviro discussed other existing corporate tax reform proposals and potential limitations to enacting corporate tax reform. The George Washington University’s Joann Weiner identified and discussed the firms, industries, and other organizations that stand to gain or lose from Dr. Toder and Dr. Viard’s recommendations.
-Cody Kallen
The US corporate income tax reduces incentives for multinational corporations to invest, book profits, and maintain residence in the US. But reforms that address some of these adverse incentives generally worsen others.
In a new report, Alan D. Viard and Eric Toder suggest basing tax liabilities for corporate profits on the residence of individual shareholders rather than on the residence or income source. Elaborating on their April 2014 report, they propose reducing the rate to 15 percent and taxing American shareholders’ dividends and accrued capital gains at ordinary income tax rates. They suggest this would counteract flawed incentives while ensuring that corporate shareholders bear their share of the tax burden.
Join AEI for an event unveiling the report, cosponsored with the Urban-Brookings Tax Policy Center.
Join the conversation on social media at #CorporateTaxReform and by following @AEIecon and @AEI.
8:45 AM
Breakfast and registration
9:00 AM
Introduction and presentation of the proposal:
Eric Toder, Urban-Brookings Tax Policy Center
Alan D. Viard, AEI
9:30 AM
Discussion of the proposal:
Daniel N. Shaviro, New York University School of Law
Joann Weiner, The George Washington University
Moderator:
Howard Gleckman, Urban-Brookings Tax Policy Center
10:00 AM
Q&A
10:30 AM
Adjournment
For more information, please contact Kaavya Ramesh at [email protected], 202.862.7193.
Howard Gleckman is a senior fellow in the Urban-Brookings Tax Policy Center at the Urban Institute, where he edits the fiscal policy blog TaxVox and the daily news summary The Daily Deduction. He is also affiliated with the Urban Institute’s Program on Retirement Policy, where he works on long-term care issues. He was previously a senior correspondent in the Washington bureau of BusinessWeek, where he was a 2003 National Magazine Award finalist. In 2006–07, he was a media fellow at the Kaiser Family Foundation, and he was a visiting fellow at the Center for Retirement Research at Boston College from 2006 to 2008. Mr. Gleckman writes two regular columns for Forbes.com, on tax policy and elder care. He is author of “Caring for Our Parents” (St. Martin’s Press, 2009) and speaks and writes frequently on long-term care issues.
Daniel N. Shaviro is the Wayne Perry Professor of Taxation at the New York University School of Law, which he joined in 1995 and where he teaches various tax courses, including a scholarly colloquium on tax policy and public finance. His scholarly work examines tax policy, budget policy, and entitlements issues. His published books include “Fixing US International Taxation” (Oxford University Press, 2014); “Decoding the US Corporate Tax” (Urban Institute Press, 2009); “Taxes, Spending, and the US Government’s March Toward Bankruptcy” (Cambridge University Press, 2006); “When Rules Change: An Economic and Political Analysis of Transition Relief and Retroactivity” (University of Chicago Press, 2000); and “Do Deficits Matter?” (University of Chicago Press, 1997). Mr. Shaviro began his teaching career at the University of Chicago Law School in 1987 after spending three years at the Joint Committee on Taxation, where he worked extensively on the Tax Reform Act of 1986. He previously spent three years at Caplin & Drysdale, a leading tax specialty firm. He graduated from Princeton University and Yale Law School.
Eric Toder is a fellow at the Urban Institute and codirector of the Urban-Brookings Tax Policy Center. In his current position, he oversees the modeling team, serves as a leading expert on corporate and international tax and tax compliance issues, and authors and directs research studies. He has published articles on a wide variety of tax policy and retirement policy issues, including corporate tax reform, distributional effects of tax expenditures, carbon taxes, value-added taxes, net benefits of Social Security taxes and spending, tax compliance, and the effects of saving incentives. Before joining Urban, Dr. Toder held several senior-level positions in tax policy offices in the US government and overseas, including deputy assistant secretary for the Office of Tax Analysis at the US Department of the Treasury, director of research at the IRS, deputy assistant director for the Office of Tax Analysis at the Congressional Budget Office, and consultant to the New Zealand Treasury. He has also served as a part-time consultant to the International Monetary Fund and serves as treasurer of the National Tax Association. He received a Ph.D. in economics from the University of Rochester in 1971.
Alan D. Viard is a resident scholar at AEI, where he studies federal tax and budget policy. Before joining AEI, he was a senior economist at the Federal Reserve Bank of Dallas and an assistant professor of economics at Ohio State University. He has also been a visiting scholar at the US Department of the Treasury’s Office of Tax Analysis, a senior economist at the White House’s Council of Economic Advisers, and a staff economist at the Joint Committee on Taxation of the US Congress. While at AEI, he has also taught public finance at Georgetown University’s Public Policy Institute. Earlier in his career, Dr. Viard spent time in Japan as a visiting scholar at Osaka University’s Institute of Social and Economic Research. He is a frequent contributor to AEI’s On the Margin column in Tax Notes and was nominated for Tax Notes’ 2009 Tax Person of the Year. He has also testified before Congress, and his work has been featured in a wide range of publications. He is the coauthor of “Progressive Consumption Taxation: The X Tax Revisited” (AEI Press, 2012) and “The Real Tax Burden: Beyond Dollars and Cents” (AEI Press, 2011) and the editor of “Tax Policy Lessons from the 2000s” (AEI Press, 2009).
Joann Weiner is visiting associate professor and the director for the master’s in applied economics at The George Washington University. She is the author of “Company Tax Reform in the European Union: Guidance from the United States and Canada on Implementing Formulary Apportionment in the EU” (Springer, 2006). She has worked as a consultant on company tax reform for the European Commission and taught at various universities in Brussels. Dr. Weiner also served as an economist in the Office of Tax Analysis at the US Treasury Department, where she worked on international tax policy, revenue estimates, tax treaties, and the OECD’s tax competition project. She has written for The Washington Post, Bloomberg, AOL’s Politics Daily, and Tax Analysts. She served on the board of EC Tax Review while in Brussels and has been a member of the board of directors for Community Tax Aid (CTA) since 2008. She was elected chairman of CTA’s board in 2014. She joined the board of the National Tax Association in Fall 2015. She earned a Ph.D. in economics from Harvard University and a B.S. in business administration from the University of California, Berkeley.