Tax Notes Article by Daniel N. Shaviro: "Moving to a Territorial System and Reforming the Corporate Tax"

Tax Notes has published an article by Daniel N. Shaviro, the Wayne Perry Professor of Taxation at the New York University School of Law, regarding the need for a tighter and tougher system of taxation for the United States. Shaviro suggests that the US adopt a territorial taxation system, which has become a worldwide trend as of late. By foregoing the residence-based taxation of corporate entities in favor of a tax on the retained earnings and profits of US companies' foreign subsidies, investors would not be able to evade taxes as easily. In addition to shifting to a territorial based system, source rules ought to be improved so companies cannot shift income outside the US as easily. Shaviro also suggests lowering the corporate tax rate to encourage investing into equities rather than debt-based securities.