Above all, I regret that Europe has not yet adopted unitary taxation
of multinationals, imposing taxes on a multinational as a single entity - which they are in reality, rather than a myriad of so-called independent subsidiaries, as they claim.
And for some time now, the Independent Commission for the Reform of International Corporate Taxation has argued for the unitary taxation
According to Ylonen, to really tackle profit-shifting we would need a global unitary taxation
system for multinational enterprises.
Most call for some type of "unitary taxation
" in which the global profit of the multinational is allocated by formula, like the way American states allocate profit among themselves for corporate tax purposes, based on where sales are generated and where property and personnel are located.
The law provides for a gradual shift to unitary taxation
to simplify the current multitiered structure for tobacco products and liquor by 2017.
(14.) In the tax case, see, for example, the OECD's opposition to unitary taxation
with formulary apportionment.
The results for the related hearings were transmitted to President Reagan on July 31, 1984, in the Chairman's Report On The Worldwide Unitary Taxation
Working Group: Activities, Issues and Recommendations.
These changes include nexus defined for MBT purposes, unitary taxation
under the MBT, small business provisions, the MBT surcharge, and an MBT credits update.
A number of states have implemented unitary taxation
in which, the firm is taxed on a worldwide taxation system.
For companies operating subsidiaries in foreign countries, the issue of unitary taxation
must be considered.
Finally, the study examines whether the effects of the state income tax burden and tax incentives on corporations' new capital spending differ between states whose income tax base is determined using unitary taxation
or the throwback rule, and states without those rules.
The encyclopedia is a handy guide, especially for those who are unfamiliar with or unclear about such federalism-relevant concepts as fiscal disparities, fiscal equalization, state gaming taxation, horizontal equity, median voter theorem, tax and revenue capacity and effort, tax competition, tax exportation, unitary taxation
, and vertical equity.