Working Paper: NBER ID: w23881
Authors: Alan J. Auerbach
Abstract: This paper describes the Destination-Based Cash-Flow Tax (DBCFT), as proposed in 2016 by Republicans in the US House of Representatives, and its potential economic effects. As a new approach and a major departure from the existing business tax system, the DBCFT and its motivation have been poorly understood by many in government, the business community, and the economics profession.
Keywords: Destination-Based Cash-Flow Tax; Economic Effects; Tax Reform
JEL Codes: F23; H25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| DBCFT (Y10) | decrease in the incentive to keep profits offshore (F23) |
| DBCFT (Y10) | increased investment in the U.S. economy (E22) |
| DBCFT (Y10) | reduction in profit-shifting behavior (H32) |
| DBCFT (Y10) | changes in corporate financing behavior (G32) |