Constitutional reforms approved in 2013 offered a historic opportunity to restructure Mexico’s anemic telecommunications sector. While the original reform initiative seemed to address key problems at the root of the dysfunctional system, it is not clear if the secondary laws will have positive social impact — or if the lion’s share of benefits will go to a minority of investors.
This paper examines the effects of a U.S. Supreme Court ruling that a one-time retroactive British “Windfall Tax” levied on 32 public utilities that were privatized between 1984 and 1996 was eligible for the US foreign tax credit (FTC). The decision could have far-reaching implications for the creditability of taxes that are not ordinarily thought to be income taxes, including various cash-flow business taxes that are key elements of several proposals recommending replacement of the income tax with a consumption-based tax.
Charles E. McLure, Jr., Jack Mintz, George R. ZodrowAugust 20, 2014