Josh Lerner and William A. Sahlman
New enterprises don't exist in a vacuum: They rise or fall depending on myriad contextual factors, all of them interrelated, and all of them affected by government policy. U.S. lawmakers must carefully consider the effects of interventions in at least 12 areas, ranging from capital markets to tax treatment to intellectual property to health care. Their decisions could shore up--or further weaken--what has long been America's greatest economic asset.
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22 Jul 2014 - The Wall Street Journal
Some tax experts testifying at Tuesday's hearing cautioned that narrow legislation could prove counterproductive even if it successfully deters some companies from reincorporating overseas. For instance, raising the threshold of a foreign company's ownership for inversions could prompt bigger foreign companies to get involved in the transactions. That could result in the U.S. portion of the company shifting more of its jobs overseas, including high-paying headquarters jobs, said Mihir Desai, finance professor at Harvard Business School.
22 Jul 2014 - The New York Times
Mihir A. Desai, a professor of law at Harvard University, said punitive legislation could be counterproductive.
"Legislation that is narrowly focused on preventing inversions or specific transactions runs the risk of being counterproductive," he said. "For example, rules that increase the required size of a foreign target to ensure the tax benefits of an inversion can deter these transactions but can also lead to more substantive transactions."
22 Jul 2014 - CNBC Squawk Box
Mihir Desai, Harvard Business School professor, shares his thoughts on corporate tax reform ahead of Tuesday morning's Senate hearing.