Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Implications of the US Tax Reform for Transatlantic FDIOn 22 December 2017 President Trump signed the Tax Cuts and Jobs Act. This corporate tax reform can be considered the most signifi cant amendment of the US corporate tax code since 1986. Besides the reduction of the corporate income tax rate from 35% to 21%, the Tax Cuts and Jobs Act entails features like a switch from worldwide income taxation to territorial taxation, as well as immediate deductions for certain assets. This leads to a substantial improvement for the US in global tax competition. In this paper, we analyse the effects of the US tax reform on FDI fl ows between Europe and the US. We fi nd that European high-tax countries in particular will suffer from a net outfl ow of FDI.

The process of economic integration and associated legislative acts, competitive pressures as well as the consequences of the financial and sovereign debt crisis have considerably shaped Member States’ tax systems during the last two decades. Our article combines a qualitative and quantitative analysis of the development of European tax systems based on a unique and comprehensive dataset for the EU-25 Member States between 1998 and 2017. Especially among the EU-15 Member States, we still find evidence for the often-cited trend of tax rate cut cum tax base broadening. In this context, we identify interest deduction limitation rules and limitations to loss offset as main drivers of tax base broadening. These mechanisms possibly reinforce the risk of economic substance taxation in crisis or loss situations. Furthermore, Member States increasingly rely on the enhanced taxation of dividends at shareholder level to prevent potential revenue losses from lower corporate income tax rates.

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