SouthViews No. 155, 25 October 2017

The Trump tax reform plan is likely to negatively affect developing countries

By Yuefen LI

The Trump administration has proposed a tax reform framework to the US Congress. Major components are a large reduction in the corporate tax rate, changes to the way US profits currently earned abroad are taxed, and how past profits parked abroad are treated if brought home. All these reforms if accepted by Congress, will most likely have adverse effects for developing countries, including by increasing capital flows from and reducing FDI to them. (more…)