💸 What limitations should be placed on government discretion when it comes to granting company-specific tax incentives?
In the article that won the Tax Notes Student Writing Competition of 2024, Nicholas Lott analyzes the polarizing company-specific tax incentive that New York offered Amazon to entice it to construct its second HQ in Long Island City. The article is titled “New York, Amazon, and Company-Specific Tax Incentives: A Microcosm of a National Problem” and in it the author lists seven policy proposals – three legislative, four deal-making – to ensure that these sorts of incentives are more efficient, transparent and fair to the public.
The article was published on September 23, 2024 on Tax Notes State and is available here: https://bit.ly/4ex9PyE
This week, Tax Notes International publishes an article written by Lucas de Lima Carvalho in which the author assesses Lott’s proposals and their potential application in a global context. Carvalho views Lott’s proposals as “a pathway for cultural change”, but warns that supranational initiatives to implement them could face democratic legitimacy issues. His article is titled “Company-Specific Tax Incentives in a Global Context” and is available here: https://bit.ly/3YTxSCg
💡 If you are interested in learning more about recent trends of tax policy design and their impact on local tax incentives, here is a list of recommended articles for your reference:
âž¡ “The Treatment of Tax Incentives under Pillar Two”, by Belisa Ferreira Liotti, Joy Ndubai, Ruth Wamuyu, Ivan Lazarov and Jeffrey Owens. Published by the UN Trade and Development (UNCTAD) in 2022. Available at: https://bit.ly/4hNCna7
âž¡ “El impuesto sobre la renta, los incentivos tributarios y las cooperativas en América Latina”, by Graciela Lara Gómez. Published by CIRIEC-España in 2024. Available in Spanish: https://bit.ly/40JbYEi
âž¡ “Incentivos Fiscais ao Meio Ambiente na Reforma Tributária e o Imposto Seletivo”, by Marcus Abraham and Camila Thiebaut B. Lannes. Published by IBDT – Instituto Brasileiro de Direito Tributário in 2024. Available in Portuguese: https://bit.ly/4hPQPhE
âž¡ “Special Economic Zones Facing the Challenges of International Taxation: BEPS Action 5, EU Code of Conduct, and the Future”, by Frederik Heitmüller and Irma Mosquera Valderrama. Published by Oxford University Press in 2021. Available at: https://bit.ly/3Ocemfi
âž¡ “Tax Incentives in Pacific Alliance Countries, the BEPS Project (Action 5), and the 2030 Sustainable Development Agenda”, by Eleonora Lozano RodrÃguez. Published by Springer Nature in 2021. Available at: https://bit.ly/4hOXUzc
âž¡ “The Impact of Pillar Two on Corporate Tax Incentives and Incentives Post Pillar Two – The Potential Rise of Tax Credits and Subsidies”, by Vikram Chand and Kinga Romanovska. Published by IBFD in 2024. Available at: https://bit.ly/3Cwnn04
