- Replacing the business income tax with a destination-based cash flow tax (DBCFT) is presented as a reform that can both raise revenue and increase economic output.
- A DBCFT broadens/improves the tax base and reduces distortions in investment and financing decisions.
- The reform would also help curb multinational profit shifting by taxing based on destination rather than where profits are booked.
- Overall, the article argues the DBCFT remains a strong option for US business tax reform.
Source: taxfoundation.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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