Influence of Tax Laws on MNC’s Choice of Home Base Before the Tax Cuts and Jobs Act of 2017 lowered U.S. corporate income tax rates, some U.S.-based MNCs moved their parent to another country with lower corporate tax rates in an attempt to reduce their taxes. Write a short essay that presents your opinion on this issue. Should U.S.-based MNCs have been allowed to move their parent without consequences? If other countries lower their corporate income tax rates in the future, should the U.S. government also lower its corporate tax rate? For whatever solution you propose, explain the possible adverse effects as well.

FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 14, Problem 1CT
Textbook Problem

Influence of Tax Laws on MNC’s Choice of Home Base Before the Tax Cuts and Jobs Act of 2017 lowered U.S. corporate income tax rates, some U.S.-based MNCs moved their parent to another country with lower corporate tax rates in an attempt to reduce their taxes. Write a short essay that presents your opinion on this issue. Should U.S.-based MNCs have been allowed to move their parent without consequences? If other countries lower their corporate income tax rates in the future, should the U.S. government also lower its corporate tax rate? For whatever solution you propose, explain the possible adverse effects as well.

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