Toder, Eric and Joseph Rosenberg, “Effects of Imposing a Value-Added Tax to Replace Payroll Taxes or Corporate Taxes,” Urban-Brookings Tax Policy Center, 03/18/10

“This analysis suggests that the main benefit of lowering the corporate income tax would be to attract more investment to the United States. In addition, because corporations can use transfer pricing and other techniques to shift the source of reported income among countries, a lower corporate tax rate could lead to more reported profits in the United States. A shift of reported corporate profits to the United States would raise revenue collected from U.S. corporations, partially or fully offsetting the direct loss in revenue from a lower corporate rate, even if domestic investment does not increase,” p. 17.