Welcome!

News Feed Item

Berkeley Research Group Releases Report on Impact of Switch to a Territorial Tax System

EMERYVILLE, CA -- (Marketwired) -- 11/08/13 -- Berkeley Research Group released a new report today that examines the likely effects of a change in the U.S. corporate tax system from the current worldwide approach to a territorial approach similar to those used by other developed countries. The report, Implications of a Switch to a Territorial Tax System in the United States: A Critical Comparison to the Current System, was authored by Dr. Laura Tyson, Dr. Eric Drabkin, and Dr. Kenneth Serwin.

The report finds that a switch to a territorial tax system would increase the repatriation of foreign earnings by U.S. multinational companies, generate economic growth and jobs in the United States, enhance the international competitiveness of many U.S. companies, and increase corporate tax revenues, at least in the short run.

"Most other OECD countries have adopted territorial tax systems," said Dr. Tyson, a professor at the Haas School of Business, University of California, Berkeley, and former chair of President Clinton's Council of Economic Advisers. "The United States, by contrast, has a system based on a worldwide approach that taxes U.S. companies when they repatriate the business earnings of their foreign subsidiaries. To counter the competitive disadvantage of the U.S. approach, U.S. companies have a strong incentive to keep their foreign earnings abroad. That is a major reason why the foreign affiliates of these companies hold an estimated $2 trillion in accumulated foreign earnings. These earnings are not financing investment and job creation in the United States.

"Our research finds that transitioning to a territorial tax system similar to those used by other advanced industrial countries would generate a significant amount of economic growth and create jobs here in the United States," said Dr. Tyson. "As lawmakers in Washington look for policies to boost economic growth and job creation, reforming the corporate tax code to allow American businesses to invest their foreign earnings in the United States now and in the future is an opportunity that should be considered."

The report assumes that a switch to a territorial-based tax system would be accompanied by a transition plan for taxing the stock of accumulated foreign earnings comparable to the plan proposed by Representative David Camp. Under such a plan, over $60 billion in tax revenues would be collected. In addition, the authors find that under the territorial tax system analyzed, U.S. companies would repatriate about $1 trillion of the stock of accumulated foreign earnings. These repatriated earnings would generate additional tax revenues and result in increases in spending and investment that would boost U.S. GDP by at least $208 billion and create at least 1.46 million additional jobs.

The report estimates that in the years following the switch to a territorial system, annual repatriation of future foreign earnings would rise by an estimated $114 billion over their current levels. The increases in spending generated by the additional repatriation would increase U.S. GDP by at least $22 billion a year and create 154,000 additional jobs on a sustained annual basis.

To view the full report, please visit http://www.brg-expert.com/media/publication/391_BRG_Implications%20of%20Territorial%20Tax_Nov2013.pdf.

About Berkeley Research Group, LLC

Berkeley Research Group, LLC (www.brg-expert.com) is a leading global expert services and consulting firm that provides independent expert testimony, authoritative studies, strategic advice, data analytics, and regulatory and dispute support to Fortune 500 corporations, government agencies, major law firms, and regulatory bodies around the world. BRG experts and consultants combine intellectual rigor with practical, real-world experience and an in-depth understanding of industries and markets. Their expertise spans economics and finance, data analytics and statistics, and public policy in many of the major sectors of our economy, including healthcare, banking, information technology, energy, construction, and real estate. BRG is headquartered in Emeryville, California, with 25 offices across the United States and in Australia, Canada, Latin America, and the United Kingdom.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact:
Mary Xjimenez
Berkeley Research Group, LLC
Email Contact
510.285.3287

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...