Breaking Down the New U.S. Corporate Tax Law
Mihir Desai, a professor of finance at Harvard Business School, breaks down the brand-new US tax law. He says it will affect everything from how corporate assets are financed to how business are structured. He predicts many individuals will lower their tax burdens by setting themselves up as corporations. And he discusses how the law shifts US tax policy toward a territorial system of corporate taxes, one that will affect multinationals and national competitiveness. Finally, Desai explains what he would have done differently with the $1.5 trillion the tax cut is projected to cost.
SARAH GREEN CARMICHAEL: Welcome to the HBR IdeaCast, from Harvard Business Review. I’m Sarah Green Carmichael.
MONTAGE OF US NEWS BROADCASTS: President Trump has signed the GOP tax bill into law / Big win for his administration. Yeah, check out that signature yesterday. Using a very big, bold marker, he signed into a law the $1.5 million-dollar tax plan.
US PRESIDENT DONALD TRUMP: Jobs are produced through companies and corporations, and you see that happening. Corporations are literally going wild over this, even beyond my expectations, so far beyond my expectations.
SARAH GREEN CARMICHAEL: How will its impact be felt not only in the US, but also around the world? For an expert look at that, we reached out to Mihir Desai.
He’s a professor of finance at Harvard Business School. An expert on business taxation, he’s the author of the 2012 HBR article “A Better Way to Tax US Businesses.” Read more….
Breaking Down the New U.S. Corporate Tax Law
