Wednesday, April 6, 2022
Deeks & Hayashi: Tax Legislation As International Coverage
Ashley Deeks (Virginia; Google Scholar) & Andrew Hayashi (Virginia; Google Scholar), Tax Legislation as International Coverage, 170 U. Pa. L. Rev. 275 (2022):
The usage of financial statecraft is at a high-water mark. The USA makes use of sanctions, tariffs, and import and export controls greater than ever earlier than. These instruments have issues, although. They impose monetary prices on home pursuits. They will induce retaliation by goal states. And overuse of those instruments might drive america from its central place within the international monetary and financial system, undermining the effectiveness of U.S. financial statecraft in the long term. However there may be an underappreciated device that might carry out beneficial international coverage work: tax regulation. We argue that tax regulation holds promise to advance U.S. international coverage pursuits and that it’s particularly necessary to deploy tax instruments now.
Tax regulation has distinctive options that make it each a partial substitute and a partial complement to different instruments of financial coercion, which implies that it could possibly lengthen the affect of U.S. financial energy whereas decreasing the danger of overusing different financial instruments.
https://taxprof.typepad.com/taxprof_blog/2022/04/deeks-hayashi-tax-law-as-foreign-policy.html
