U.S. Corporate Tax Cuts Likely to Hit Other Countries’ Bottom Lines

The law will reduce what other countries collect from multinational corporations by 1.6% to 13.5%, a new paper suggests

Richard Rubin

Updated Aug. 6, 2018 10:58 a.m. ET

WASHINGTON—Last year’s corporate tax cut is reducing U.S. tax collections, as expected. But that change is likely to ripple far beyond the country’s borders in the years ahead, shrinking other countries’ tax revenue, according to a recent paper by economists at the International Monetary Fund.

The U.S. tax law will reduce what other countries collect from multinational corporations by 1.6% to 13.5%, according to the new estimates.

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