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  • All HBS Web  (1,792)
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    • News  (516)
    • Research  (947)
    • Events  (10)
    • Multimedia  (43)
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  • Article

Tax Policy and the Efficiency of U.S. Direct Investment Abroad

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.
Deferral of U.S. taxes on foreign source income is commonly characterized as a subsidy to foreign investment, as reflected in its inclusion among "tax expenditures" and occasional calls for its repeal. This paper analyzes the extent to which tax deferral and other... View Details
Keywords: International Taxation; Dynamic Efficiency; Deferral; Policy; Taxation; Performance Efficiency; Foreign Direct Investment; Investment Funds; Investment Return; Business Earnings; Equity; Financing and Loans; Cash Flow; Capital; United States
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Desai, Mihir A., C. Fritz Foley, and James R. Hines Jr. "Tax Policy and the Efficiency of U.S. Direct Investment Abroad." National Tax Journal 64, no. 4 (December 2011): 1055–1082.
  • Article

Inflation and Taxes in a Growing Economy with Debt and Equity

By: M. Feldstein, Jerry R. Green and Eytan Sheshinski
Our tax system was designed for an economy with little or no inflation. The current paper shows that inflation causes capricious changes in the effective rate of tax on capital income and therefore in the real net rate of return that savers receive. This is not only a... View Details
Keywords: Taxation; Inflation and Deflation; Economy
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Feldstein, M., Jerry R. Green, and Eytan Sheshinski. "Inflation and Taxes in a Growing Economy with Debt and Equity." Special Issue on Research in Taxation. Journal of Political Economy 86, no. 2 pt. 2 (April 1978): S53–S70.
  • 2025
  • Working Paper

Tax Planning, Illiquidity, and Credit Risks: Evidence from DeFi Lending

By: Lisa De Simone, Peiyi Jin and Daniel Rabetti
This study establishes a plausible causal link between tax-planning-induced illiquidity and credit risks in lending markets. Exploiting an exogenous tax shock imposed by the Internal Revenue Service (IRS) on cryptocurrency gains, along with millions of transactions in... View Details
Keywords: Cryptocurrency; Taxation; Financial Liquidity; Credit; Financing and Loans; Financial Markets
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De Simone, Lisa, Peiyi Jin, and Daniel Rabetti. "Tax Planning, Illiquidity, and Credit Risks: Evidence from DeFi Lending." Working Paper, February 2025.
  • 2025
  • Working Paper

Fiscal Externalities of Transaction Taxes: Evidence from the Los Angeles Mansion Tax

By: Daniel Green, Vikram Jambulapati, Jack Liebersohn and Tejaswi Velayudhan
We estimate the fiscal externalities of a property transfer tax, the Los Angeles “Mansion Tax”, on the revenues from property taxes when assessed values are closely tied to transactions. In California, as in over half of U.S. states, growth in tax as- sessments... View Details
Keywords: Public Finance; Real Estate; Property Demand; Taxation; Property; Revenue; Los Angeles
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Green, Daniel, Vikram Jambulapati, Jack Liebersohn, and Tejaswi Velayudhan. "Fiscal Externalities of Transaction Taxes: Evidence from the Los Angeles Mansion Tax." SSRN Working Paper Series, No. 5273034, June 2025.
  • February 2014
  • Teaching Note

Advising Families on Estate Planning

By: Robert C. Pozen
Sean Warrick is an estate planning adviser at Hellwig & Macon. He is preparing for meetings with two clients. His first clients are Peggy and David Bartley, a professional married couple of moderate wealth. His second clients are Ray and Michelle Polanski, a couple... View Details
Keywords: Estate Planning; Estate Tax; Gift Tax; Gift Giving; Generation Skipping Tax; Tax Accounting; Tax Strategy; Taxes; Taxation; Retirement; Financial Services Industry; United States
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Pozen, Robert C. "Advising Families on Estate Planning." Harvard Business School Teaching Note 314-089, February 2014.
  • 2007
  • Working Paper

Taxes and Portfolio Choice: Evidence from JGTRRA's Treatment of International Dividends

By: Mihir A. Desai and Dhammika Dharmapala
This paper investigates how taxes influence portfolio choices by exploring the response to the distinctive treatment of foreign dividends in the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA). JGTRRA lowered the dividend tax rate to 15% for American equities... View Details
Keywords: Equity; Financial Markets; International Finance; Investment Portfolio; Government Legislation; Taxation; United States
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Desai, Mihir A., and Dhammika Dharmapala. "Taxes and Portfolio Choice: Evidence from JGTRRA's Treatment of International Dividends." NBER Working Paper Series, No. 13281, July 2007.
  • 1994
  • Article

Energy Taxes and Aggregate Economic Activity

By: J. J. Rotemberg and Michael Woodford
Keywords: Taxation; Economics
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Rotemberg, J. J., and Michael Woodford. "Energy Taxes and Aggregate Economic Activity." Tax Policy and the Economy 8 (1994): 159–195.
  • 2004
  • Working Paper

Economic Effects of Regional Tax Havens

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.
Citation
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Desai, Mihir A., C. Fritz Foley, and James R. Hines Jr. "Economic Effects of Regional Tax Havens." NBER Working Paper Series, No. 10806, October 2004.
  • 24 Oct 2017
  • Research & Ideas

Tax Reform is on the Front Burner Again. Here’s Why You Should Care

Credit: malerapaso For as much as American politicians and their constituents complain about taxes, the truth is that tax reform packages to address those complaints are rare—the last major reform of the tax... View Details
Keywords: by Sean Silverthorne
  • January 2014
  • Article

Randomized Tax Enforcement Messages: A Policy Tool for Improving Audit Strategies

By: Dina Pomeranz, Cristobal Marshall and Pamela Castellon
Reducing tax evasion is a key challenge for governments around the world, particularly in developing countries. This paper presents a methodology to generate information to optimize audit strategies. Randomly selected taxpayers receive a deterrence message. Comparing... View Details
Keywords: Lawfulness; Taxation; Chile
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Pomeranz, Dina, Cristobal Marshall, and Pamela Castellon. "Randomized Tax Enforcement Messages: A Policy Tool for Improving Audit Strategies." Tax Administration Review, no. 36 (January 2014): 1–21.
  • 1989
  • Chapter

The Economic Recovery Tax Act of 1981

By: N. F. Koehn
Keywords: Taxation; Laws and Statutes; United States
Citation
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Koehn, N. F. "The Economic Recovery Tax Act of 1981." In Macroeconomic Decision Making in the World Economy, edited by Michael G Rukstad. Dryden Press, 1989.
  • December 1996
  • Article

New IAS Standard: Accounting for Income Taxes

By: David F. Hawkins
Keywords: Taxation; Accounting; Standards
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Hawkins, David F. "New IAS Standard: Accounting for Income Taxes." Accounting Bulletin, no. 44 (December 1996).
  • Book Review

Review of Global Tax Fairness edited by Thomas Pogge and Krishen Mehta

By: Matthew C. Weinzierl
This timely volume (Global Tax Fairness, edited by Thomas Pogge and Krishen Mehta) on the proper taxation of multinational enterprises argues that several feasible, near-term reforms could substantially narrow the scope for tax avoidance by closing information gaps,... View Details
Keywords: Taxation; Global Range; Policy; Fairness
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Weinzierl, Matthew C. "Review of Global Tax Fairness edited by Thomas Pogge and Krishen Mehta." Journal of Economic Literature 56, no. 2 (June 2018): 673–684.
  • January 1984
  • Case

COMSERV Corp.: Software Capitalization and Tax Credits

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Vitale, Michael R. "COMSERV Corp.: Software Capitalization and Tax Credits." Harvard Business School Case 184-085, January 1984.
  • April 2018
  • Article

The Power of Voice in Stimulating Morality: Eliciting Taxpayer Preferences Increases Tax Compliance

By: Cait Lamberton, Jan-Emmanuel De Neve and Michael I. Norton
Decisions about paying taxes represent one of the most common moral quandaries faced by citizens. In the present research, we argue that taxpayer compliance can be raised by increasing “voice”: allowing taxpayers to express non-binding preferences about the way their... View Details
Keywords: Morality; Public Policy; Ethics; Moral Sensibility; Taxation; Policy; Attitudes; Governance Compliance
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Lamberton, Cait, Jan-Emmanuel De Neve, and Michael I. Norton. "The Power of Voice in Stimulating Morality: Eliciting Taxpayer Preferences Increases Tax Compliance." Special Issue on Marketplace Morality. Journal of Consumer Psychology 28, no. 2 (April 2018): 310–328.
  • 2011
  • Working Paper

Tax Policy and the Efficiency of U.S. Direct Investment Abroad

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.
Deferral of U.S. taxes on foreign source income is commonly characterized as a subsidy to foreign investment, as reflected in its inclusion among "tax expenditures" and occasional calls for its repeal. This paper analyzes the extent to which tax deferral and other... View Details
Keywords: Cash Flow; Investment Return; Foreign Direct Investment; Investment Funds; Policy; Taxation; United States
Citation
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Desai, Mihir A., C. Fritz Foley, and James R. Hines Jr. "Tax Policy and the Efficiency of U.S. Direct Investment Abroad." NBER Working Paper Series, No. 17202, July 2011.
  • January 2006
  • Article

Corporate Tax Avoidance and High Powered Incentives

By: Mihir A. Desai and Dhammika Dharmapala
Keywords: Taxation; Motivation and Incentives
Citation
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Desai, Mihir A., and Dhammika Dharmapala. "Corporate Tax Avoidance and High Powered Incentives." Journal of Financial Economics 79, no. 1 (January 2006): 145–179. (This paper is a revised version of NBER Working Paper 10471.)
  • 14 Mar 2013
  • Working Paper Summaries

No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax

Keywords: by Dina Pomeranz
  • January 13, 2003
  • Other Article

The Tax Cut That Could Pay Dividends

By: Michael E. Porter
Keywords: Strategy
Citation
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Porter, Michael E. "The Tax Cut That Could Pay Dividends." FT.com (January 13, 2003).
  • 2003
  • Article

The Divergence Between Book and Tax Income

By: Mihir A. Desai
Keywords: Taxation
Citation
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Desai, Mihir A. "The Divergence Between Book and Tax Income." Tax Policy and the Economy 17 (2003): 169–206. (Issue edited by James M. Poterba. This paper is a revision of NBER Working Paper 8866, entitled The Corporate Profit Base, Tax Sheltering Activity, and the Changing Nature of Employee Compensation. [For a profile of this research from The New York Times, see here. For a profile of this research from The Economist, see here.].)
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