Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Thompson says US prison population is 'staggeringly high' at about 1.5 million, despite 2% drop for 2015

Levy et al. find Michigan's Medicaid expansion boosted state's economy while increasing number of insured

More News

Highlights

Russell Sage 2-week workshop on social science genomics, June 11-23, 2017, Santa Barbara

2017 PAA Annual Meeting, April 27-29, Chicago

U-M presents Amy Goodman, Issa Rae, and Shaun King in celebration of MLK

Sioban Harlow and Carlos Mendes de Leon recognized for their work on global health

More Highlights

Next Brown Bag

Mon, Jan 23, 2017 at noon:
Decline of cash assistance and child well-being, Luke Shaefer

Foreign Income and Domestic Deductions

Archived Abstract of Former PSC Researcher

Hines, James. 2008. "Foreign Income and Domestic Deductions." National Tax Journal, 61(3): 461-475.

To what extent should taxpayers deduct expenses incurred domestically that contribute to foreign income production? It is widely believed that if the home country does not tax foreign income, then it also should not permit deductions for that portion of domestic expenses attributable to earning foreign income. This prescription is, however, inconsistent with the decision to exempt foreign income from taxation in the first place. The paper shows that, for any system of taxing foreign income, the consistent and efficient treatment is to permit domestic expense deductions for all expenses incurred domestically. This differs from the current U.S. regime, under which American firms were required to allocate more than $110 billion of domestic expenses against foreign income in 2004.

Browse | Search : All Pubs | Next