In this paper the impact of the corporate tax systems of the EU-member states on the investment and the financing decision of an US multinational corporation is analysed. The calculation of the resulting effective marginal tax rates (EMTR) closely follow the model of King and Fullerton. There is not only a great variation among the EMTR in the EU-member states which can affect cross-border location, investment and financing decisions. Moreover, recent reform proposals in Germany are likely to have impact both on investment patterns and financing decisions of US multinationals in Germany.

Spengel, Christoph (1999), Effective Marginal Tax Rates for US Investors in Germany and Europe: An Analysis of Recent Tax Reforms in Germany, ZEW Discussion Paper No. 99-55, Mannheim, erschienen in: Intertax 1999, S. 445-459. Download


Capital income taxation,Cross-border tax planing,Tax burden comparison,Tax Competition,Tax harmonization in Europe