Bloomberg News questions Rosanne Altshuler on international tax policy . . .
Bloomberg Business quoted Rutgers economist, Rosanne Altshuler, an expert on international taxation, in an article (March 4, 2015), "U.S. Companies Are Stashing $2.1 Trillon Overseas to Avoid Taxes." Bloomberg noted, "The money pileup, reflecting companies’ incentives to park profits in low-tax countries, has drawn the attention of President Barack Obama and U.S. lawmakers, who see a chance to tap the funds for spending programs and to revamp the tax code."
Professor Altshuler explained, “One of the reasons that they’re holding the hoards of cash abroad is they don’t want to pay the repatriation tax when they bring it back. . . . It’s very easy to place a patent in another country and accrue the income there. . . . “They’re very sensitive to differentials in corporate tax rates.”
Read research findings of Dr. Altshuler, Stephen Shay, and Eric Toder in "Lessons the United States Can Learn from Other Countries’ Territorial Systems for Taxing Income of Multinational Corporations" at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2557190
and Dr. Altshuler and Harry Grubert in "Fixing the System: An Analysis of Alternative Proposals for the Reform of International Tax" at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2245128.