COLLEGE PARK, Md. – May 21, 2013 – The U.S. Senate revelation that Apple has avoided paying income tax signals it’s time to overhaul the U.S. corporate tax code, says Mike Faulkender, associate professor of finance in the University of Maryland’s Robert H. Smith School of Business.
The Smith School has an in-house facility for live or taped interviews via fiber-optic line for television or multimedia content. Faulkender (301-405-1064; email@example.com) can expand on these comments:
“Apple legally shielding its offshore earnings from significant repatriation tax demonstrates a broken corporate tax code. Instead of attempting to publicly shame Apple, Congress should focus on reforming and simplifying the tax code to encourage multinationals to locate more of their operations in the United States.
“Reversing the 35-to-20-percent corporate-to-personal income tax ratio or some form of compromise can inject growth and investment into the sluggish economy and generate revenue from companies like Apple.”
Faulkender, with co-author Mitchell Petersen (Northwestern University), recently earned the Review of Financial Studies’ Best Paper Award for “Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act” – a study covering corporate repatriation tax activity and corporate tax reform.