Evaluation of Interest Charge-Domestic International Sales Corporation (IC-DIS)

• In Event: SESSION 2C: Taxation

Abstract

IC-DISC was enacted in 1984, and today it is the only tax incentive left designed specifically for exporters. The performance evaluation for IC-DISC comes in two ways: one is the number of tax returns filed, and the other one is the percentage of total exports of IC-DISC to the total U.S exports. Data are collected from U.S Census Bureau Foreign Trade Division and Internal Revenue Service (IRS) data book from 1996 to 2008. The results of this study indicate that IC-DISC seems an unsatisfactory tax incentive program. It may require the Administration and the Congress revise or redesign to make it more attractive.

Authors

• chao m liu, tarleton state university

• li juan sun, university of texas pan american