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1 Alan Cole, The Impact of BEPS 1.0 1 (2024)

handle is hein.taxfoundation/ipctobep0001 and id is 1 raw text is: * TAX FOUNDATION The Impact of BEPS 1.0 Alan Cole Senior Economist April 2024 Key Findings • Both the OECD Pillar Two agreement and scheduled changes to the Tax Cuts and Jobs Act are likely to alter the international corporate income tax landscape in the coming years. • The OECD also spearheaded a considerable tax policy initiative, known as BEPS 1.0, last decade, and its effects are still being felt. • Tax policy benefits from stability and slow, considered change. It is worth examining the successes and failures of the BEPS 1.0 initiative before adding new initiatives. • Base erosion and profit shifting are legitimate problems with international corporate income taxa- tion. Even if low effective rates have some desirable economic properties, these should be achieved through legislation, not costly tax planning. • Some of the better ideas for international reforms were already made in that prior effort. And many reforms come with compliance costs. Future reforms may have a worse cost-benefit ratio. • Future efforts should avoid duplication, pursue win-win arrangements, and aim to reduce compliance costs. The Tax Foundation is the world's leading nonpartisan tax policy 501(c)(3) nonprofit. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. TAX FOUNDATION 1325 G STREET, NW, SUITE 950, WASHINGTON, DC 20005 202-464-6200 1 taxfoundation.org