TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Thursday, February 23, 2017

Osofsky Presents Regulating By Example Today At Duke

Osofsky (2016)Leigh Osofsky (Miami) presents Regulating by Example, 35 Yale J. on Reg. ___ (2017) (with Susan C. Morse (Texas)), at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

Agency regulations are full of examples. Regulated parties and their advisors parse the examples to develop an understanding of the applicable law and to determine how to conduct their affairs. However, neither the legal nor theoretical literature contains any study of regulatory examples or explains how they might be interpreted. This Article fills this gap.

In this Article, we explore regulatory examples and set forth a theory for how to interpret them. We examine how regulatory examples, like common law cases, serve as data points that help communicate legal content. We argue that regulatory examples are best understood through analogical, or common law, reasoning, and illustrate this through a variety of examples.

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February 23, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Mehrotra Presents Law, Politics And The Rise Of Progressive Taxation (1877-1929) Tonight At UNLV

Mehrotra (2017)Ajay Mehrotra (American Bar Foundation & Northwestern) delivers the Philip Pro Lectures in Legal History at UNLV tonight on Making the Modern American Fiscal State: Law, Politics, and the Rise of Progressive Taxation, 1877-1929 (Cambridge University Press, 2013) (reviews)  (awards):

At the turn of the twentieth century, the U.S. system of public finance underwent a dramatic transformation. The late-nineteenth-century regime of indirect, hidden, partisan, and regressive taxes was eclipsed in the early twentieth century by a direct, transparent, professionally administered, and progressive tax system. This book uncovers the contested roots and paradoxical consequences of this fundamental shift in American tax law and policy. It argues that the move toward a regime of direct and graduated taxation marked the emergence of a new fiscal polity — a new form of statecraft that was guided not simply by the functional need for greater revenue but by broader social concerns about economic justice, civic identity, bureaucratic capacity, and public power.

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February 23, 2017 in Book Club, Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, February 21, 2017

Oh Presents Are the Rich Responsible for Progressive Marginal Rates? Today At NYU

OhJason Oh (UCLA) presents Are the Rich Responsible for Progressive Marginal Rates? at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

Why do income tax systems across the world consistently feature progressive marginal rates? The existing literature tells a political story focusing on the top of the rate schedule and the preferences of the poor and middle class. According to the standard view, higher rates at the top result from the poor and middle class using the political process to “soak the rich.” However, this explanation is inconsistent with research showing that public policy is generally more responsive to the preferences of the rich. Explaining marginal rate progressivity as a universal (and exceptional) triumph of the poor and middle class rings hollow.

This Article resolves this tension in the extant literature by showing how progressive marginal rates are in fact consistent with the preferences of the rich.

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February 21, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Monday, February 20, 2017

Blank Presents The Timing Of Tax Transparency Today At Pepperdine

Blank (2017)Joshua Blank (NYU) presents The Timing of Tax Transparency, 90 S. Cal. L. Rev. ___ (2017), at Pepperdine today as part of our Tax Policy Workshop Series funded in part by a generous gift from Scott Racine:

Fairness in the administration of the tax law is the subject of intense debate in the United States. As recent headlines reveal, the Internal Revenue Service has been accused of failing to enforce the tax law equitably in its review of tax-exempt status applications by political organizations, the international tax structures of multinational corporations, and the estate tax returns of millionaires, among other areas. Many have argued that greater “tax transparency” would better empower the public to hold the IRS accountable and the IRS to defend itself against accusations of malfeasance. Mandatory public disclosure of taxpayers’ tax return information is often proposed as a way to achieve greater tax transparency. Yet, in addition to concerns regarding exposure of personal and proprietary information, broad public disclosure measures pose potential threats to the taxing authority’s ability to enforce the tax law.

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February 20, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Friday, February 17, 2017

Hickman Presents Restoring The Lost Anti-Injunction Act At BYU

Hickman (2017)Kristin Hickman (Minnesota) presented Restoring the Lost Anti-Injunction Act (with Gerald Kerska (J.D. 2017, Minnesota)) yesterday at BYU as part of its Faculty Workshop Series:

Should Treasury regulations be eligible for pre-enforcement review? The D.C. Circuit’s recent decision in Florida Bankers Association puts its interpretation of the Anti-Injunction Act at odds with both general administrative law norms in favor of pre-enforcement review of final agency action and also the Supreme Court’s interpretation of the nearly identical Tax Injunction Act in Direct Marketing Association v. Brohl. In fact, cases interpreting the Anti-Injunction Act more generally are fragmented and inconsistent.

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February 17, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Thursday, February 16, 2017

Hayashi Presents A Theory Of Facts And Circumstances Today At Duke

HayashiAndrew Hayashi (Virginia) presents A Theory of Facts and Circumstances at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

The legal consequences of an action often depend on information that only the actor knows, such as her intentions. This information is often inferred from the observable “facts and circumstances” attending the actor’s conduct, which creates a seemingly unresolvable tension in legal design. On the one hand, the unstructured nature of these analyses gives free rein to the factfinder’s judgment about which facts justify an inference to the hidden information. On the other hand, if the law were to specify in advance the facts that would be used to draw that inference it would provide a roadmap for actors to strategically adjust their conduct to manipulate the factfinder’s conclusions. I argue that this tension can be resolved by applying insights from the economics literature on asymmetric information.

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February 16, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Book Presents Taxpayer Rights, Behavioral Economics And The EITC Today At Indiana

BookLeslie Book (Villanova) presents Thinking About Taxpayer Rights and Behavioral Economics to Improve Administration of the EITC (with David Williams (Chief Tax Officer, Intuit)) at Indiana-Bloomington today as part of its Tax Policy Colloquium Series hosted by Leandra Lederman:

The IRS is a reluctant but key player in delivering social benefits to the nation’s working poor. Yet it administers one of the nation’s largest anti-poverty programs: the earned income tax credit (EITC). The EITC is generally praised for its role in reducing poverty and incentivizing low-wage work. While the credit has generally received bipartisan support, the IRS continues to face strong criticism over EITC compliance issues.

The IRS has generally focused on tax return characteristics in identifying and preventing erroneous EITC claims. We believe that shifting the focus from tax return characteristics to taxpayer characteristics may offer additional opportunities to improve EITC compliance (and perhaps other areas where there is systemic noncompliance).

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February 16, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, February 14, 2017

Toder Presents Taxing Entrepreneurial Income Today At Georgetown

Toder (2017)Eric Toder (Tax Policy Center) presents Taxing Entrepreneurial Income at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

This paper applies the Schumpeterian view of entrepreneurship to estimate the tax rate on entrepreneurial income under alternative assumptions about the pattern of returns from innovations, the tax rules applied to different types of income (wages, interest, capital gains, dividends, corporate profits), and the effects of taxes on the market value of successful enterprises. We model the tax rate on entrepreneurial income as the tax burden on an individual who establishes a new firm and then sells her interest in the business once it becomes an established enterprise. The paper finds the effective tax rate on entrepreneurial income depends on both the tax rate imposed on the entrepreneur’s income during the firm’s growth phase and on the effects of the tax system on the price at which the entrepreneur can cash in her investment when the firm reaches maturity.

February 14, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, February 13, 2017

Christians Presents Human Rights At The Borders Of Tax Sovereignty Today At NYU

Christians (2017)Allison Christians (McGill) presents Human Rights at the Borders of Tax Sovereignty at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

Tax scholarship typically presumes the state' s power to tax and therefore rarely concerns itself with analyzing which relationships between a government and a potential taxpayer normatively justify taxation, and which do not. This paper presents the case for undertaking such an analysis as a matter of the state' s obligation to observe and protect fundamental human rights.

It begins by examining existing frameworks for understanding how a taxpayer population is and ought to be defined. It then analyzes potential harms created by an improperly expansive taxpayer category, and those created by excluding from consideration those beyond the polity even if directly impacted by the tax regime. It concludes that a modified membership principle is a more acceptable framework for normative analysis of the jurisdiction to tax, even while acknowledging the overwhelming weight of existing perceptions about the bounds of the polity and the state-citizen relationship as significant barriers to acceptance.

February 13, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Polsky Presents Elite Tax Professionals Behaving Badly Today At UC-Irvine

Polsky (2015)Gregg Polsky (Georgia) presents Elite Tax Professionals Behaving Badly: The Sad and Sordid Management Fee Waiver Saga at UC-Irvine today as part of its Tax Law and Policy Colloquium Series hosted by Omri Marian:

For at least the past 15 years, many private equity fund managers have used a technique—known as a management fee waiver—to try to claim what is effectively their weekly paycheck as a capital gain. Recently, the Treasury and IRS explained that, at least in the government’s view, the vast majority of fee waivers do not actually provide the claimed tax result. Recent reports of significant audit activity relating to fee waivers suggest that the fee waiver saga may finally be coming to an end, but not before billions of tax revenues that are beyond the statute of limitations have been lost forever.

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February 13, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Thursday, February 9, 2017

Walker Presents The Practice And Tax Consequences Of Nonqualified Deferred Compensation Today At Duke

Walker (2016)David Walker (Boston University) presents The Practice and Tax Consequences of Nonqualified Deferred Compensation at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

Although nonqualified deferred compensation plans lack explicit tax preferences afforded qualified plans, it is well understood that nonqualified deferred compensation results in a joint tax advantage when employers earn a higher after-tax return on deferred sums than employees could achieve on their own. Several commentators have proposed tax reform aimed at leveling the playing field between cash and nonqualified deferred compensation, but reform is not easily achieved. This Article examines the stakes.

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February 9, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Wednesday, February 8, 2017

Liscow Presents Innovation And Climate Law Today At Toronto

Liscow (2017)Zachary Liscow (Yale) presents Innovation and Climate Law (with Quentin Karpilow (Yale)) at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

A common view in environmental law is that the government should not pick certain technologies over others. Rather, in the context of climate policy, this view suggests that the government should impose a carbon tax and let that induce innovation in private sector through the patent system. We offer a qualified defense of the government “picking winners”: directly encouraging innovation in cleantech over dirtytech and even within cleantech. Our argument is largely based on recent research in economics showing “path dependence” in the development of energy technology, suggesting that a big push in cleantech innovation can lead to a permanent reorientation of the energy sector and lead to more emissions reductions at lower cost.

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February 8, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, February 7, 2017

Batchelder Presents Accounting For Behavioral Biases In Business Tax Reform Today At Georgetown

BatchelderLily Batchelder (NYU) presents Accounting for Behavioral Biases in Business Tax Reform: The Case of Expensing at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

One of the fundamental questions in business tax reform is whether to allow firms to immediately expense investments or require economic cost recovery. The conventional view is that expensing would generate stronger growth effects holding revenues constant. This view is rooted in traditional models of corporate finance that assume firms look at the net present value of expected tax payments when incorporating taxes into investment decisions. But this traditional view ignores the possibility that firms focus on more salient measures of taxes as well. If so, they may respond less to expensing than this theory suggests because expensing does not lower their financial accounting tax liability and, all else equal, requires a higher statutory rate.

This paper considers whether firms undervalue expensing due to a focus on these non-economic tax metrics and, if so, what this implies about business tax reform if the goal is to increase US investment. It develops a framework for what cost recovery rules are optimal, and then uses new and existing data to parameterize this framework, holding constant long-run revenues and the relative tax treatment of debt and equity. 

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February 7, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, February 6, 2017

Pratt Presents The IRS's Startling Attempt To Deny Medical Expense Deduction For Cost Of Male-To-Female Transition Today At Pepperdine

Pratt (2016)Katherine Pratt (Loyola-L.A.) presents The Tax Definition of “Medical Care:” A Critique of the Startling IRS Arguments in O’Donnabhain v. Commissioner, 23 Mich. J. Gender & L. 313 (2016), at Pepperdine today as part of our Tax Policy Workshop Series funded in part by a generous gift from Scott Racine:

This Article critiques the startling arguments made by the Internal Revenue Service (“IRS”) in O’Donnabhain v. Commissioner, a case in which the issue was whether a person diagnosed with gender identity disorder (“GID”) could take a federal tax deduction for the costs of male-to-female medical transition, including hormone treatment, genital surgery, and breast augmentation.

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February 6, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (2)

Auerbach Presents U.S. Inequality, Fiscal Progressivity, And Work Disincentives Today At NYU

AuerbachAlan Auerbach (UC-Berkeley) presents U.S. Inequality, Fiscal Progressivity, and Work Disincentives: An Intra-generational Accounting (with Laurence Kotlikoff (Boston University) & Darryl Koehler) at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

This study combines the 2013 Federal Reserve Survey of Consumer Finances data and the Fiscal Analyzer, a highly detailed life-cycle consumption-smoothing program, to a) measure ultimate economic inequality – inequality in lifetime spending power – within cohorts, b) assess fiscal progressivity within cohorts, c) calculate marginal remaining lifetime net tax rates, taking into account all major federal and state tax and transfer policies, d) evaluate the ability of current income to correctly classify households as rich, middle class, and poor, e) determine whether current-year average net tax rates accurately capture actual fiscal progressivity, and f) determine whether current-year marginal tax rates on labor supply accurately capture actual remaining lifetime marginal net tax rates.

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February 6, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Olson Presents Tax Policy In The New Administration Today At Minnesota

Olson (2017)Pam Olson (PricewaterhouseCoopers) presents Tax Policy in the New Administration at the University of Minnesota Law School Corporate Institute Forum on Taxation and Regulation today as part of its Perspectives on Taxation Lecture Series:

The start of a new presidential administration is always an interesting time for reflecting on tax policy. What are the new administration’s tax policy goals? Where does tax policy fall on the new administration’s list of priorities? What tax legislation might Congress consider?

The Honorable Pam Olson is the U.S. Deputy Tax Leader and Washington National Tax Services Practice Leader of PricewaterhouseCoopers LLP, heading a team that includes many former senior government officials and policy advisors. Before joining PwC, she retired from Skadden, Arps, Slate, Meagher & Flom, where she was the leader of the Washington office tax practice.

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February 6, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Thursday, February 2, 2017

Thomas Presents Taxing The Gig Economy Today At Duke

Thomas (2017)Kathleen Delaney Thomas (North Carolina) presents Taxing the Gig Economy at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

Due to advances in technology like mobile applications and online platforms, millions of American workers now earn income through “gig” work, which allows them the flexibility to set their own hours and choose which jobs to take. To the surprise of many gig workers, the tax law considers them to be “business owners,” which subjects them to onerous recordkeeping and filing requirements, along with the obligation to pay quarterly estimated taxes. This Article proposes two reforms that would drastically reduce tax compliance burdens for this new generation of small business owners, while simultaneously enhancing the government’s ability to collect tax revenue.

First, Congress should create a “non-employee withholding” regime that would allow online platform companies such as Uber to withhold taxes for their workers without being classified as employers. Second, the Article proposes a “standard business deduction” for gig workers equal to 80 percent of their gross receipts, which would eliminate the need to track and report business expenses.

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February 2, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Kysar Presents Automatic Legislation Today At Indiana

KysarRebecca Kysar (Brooklyn) presents Automatic Legislation at Indiana-Bloomington today as part of its Tax Policy Colloquium Series hosted by Leandra Lederman:

To compensate for the status quo bias in the legislative process, lawmakers have developed devices that, under certain conditions, provide easier paths to policy refreshment. Procedural mechanisms, like the reconciliation process, may eliminate barriers to legislating (“veto bridges”). Laws may prompt Congress to act through sunset dates or penalties like sequestration or other undesirable policy outcomes (“prompting legislation”). Or the legislative product itself may automatically update without further action by Congress (“automatic legislation”). It is this last, underutilized category, I contend, that best overcomes policy stasis while also avoiding the pathologies presented by the other two. Specifically, automatic legislation is preferable along several different axes: interaction with the administrative state, entrenchment effects, political economic and democratic concerns, and the budget process.

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February 2, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, January 31, 2017

Shaheen Presents Treaty Aspects Of The McDonald's State Aid Investigation Today At Georgetown

Shaheen (2017)Fadi Shaheen (Rutgers) presents Treaty Aspects of the McDonald's State Aid Investigation at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

On December 3, 2015, The European Commission decided to initiate an official investigation into whether Luxemburg has selectively granted McDonald’s advantageous tax treatment in breach of EU state aid rules. The Commission’s decision is based on its conclusion that Luxembourg’s treaty-based exemption of the income attributable to the U.S. branch of a McDonald’s Luxembourgian subsidiary is contrary to the Luxembourg-U.S. treaty because that income was not taxable in the United States. This paper demonstrates that while the Commission’s conclusion and recourse to conflicts of qualification principles are correct, both the Commission’s reasoning on the one hand and Luxembourg’s and McDonald’s position on the other hand misapply the treaty.

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January 31, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, January 30, 2017

Gergen Presents How To Tax Global Capital Today At NYU

Gergen (2017)Mark Gergen (UC-Berkeley) presents How to Tax Global Capital, 69 Tax L. Rev. ___ (2016), at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

In an earlier paper I proposed a new approach to taxing capital owned by U.S. households and nonprofits. The heart of the new approach is a flat annual tax on the market value of publicly traded securities with a rate of around .8 percent (80 basis points) that is remitted by the issuer. A security issuer gets a credit for publicly traded securities it holds so that wealth that is represented by a string of publicly traded securities is taxed once. For example, a mutual fund remits the tax based on the market or redemption value of interests in the fund and gets a credit based on the market value of publicly traded securities it holds.

Income producing capital that is not subject to the securities tax, such as an interest in a closely held business or in a private equity fund, is covered by a complementary tax with the same rate as the securities tax.

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January 30, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Oei Presents The Law of the Leak Today At Washington & Lee

OeiShu-Yi Oei (Tulane; moving to Boston College) presents The Law of the Leak (with Diane Ring (Boston College)) at Washington & Lee today as part of its Faculty Workshop Series hosted by Michelle Drumbl:

Over the past decade, a number of well-publicized data leaks concerning the secret offshore holdings of high-net-worth individuals and multinational taxpayers have reverberated through tax circles worldwide, leading to a sea change in cross-border tax enforcement. Spurred by leaked data, tax authorities have prosecuted offshore tax cheats, attempted to recoup lost revenues, enacted new laws, and signed international agreements that promote “sunshine” and exchange of financial information between countries.

The conventional wisdom is that data leaks enable tax authorities to detect and punish offshore tax evasion more effectively, and that leaks are therefore socially beneficial from an economic welfare perspective. This Article argues, however, that the conventional wisdom is too simplistic.

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January 30, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Hackney Presents Labor Unions And Tax Exemption Today At UC-Irvine

HackneyPhilip Hackney (LSU) presents Subsidizing the Heavenly Chorus: Labor Unions and Tax Exemption at UC-Irvine today as part of its Tax Law and Policy Colloquium Series hosted by Omri Marian:

Labor interests are historically politically weak in our U.S. democracy. Laborers who desire to form an organization to advance their political interests face classic collective action problems. This presents a significant challenge for a modern democratic state that depends upon organized interests to represent the political voice of its citizens. This Article examines the impact of our federal income tax system on labor interests. It focuses upon the provision of tax exemption to labor unions and the deduction of labor union dues. I adopt a model that presumes in a democracy we should aim for one person one political voice. By political voice I mean more than the concept of one person one vote; it refers to the ability of citizens to participate in setting the political agenda and to vote on any final decision.

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January 30, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Thursday, January 26, 2017

Mehrotra Presents Japanese And U.S. Resistance To The VAT Today At Duke

Mehrotra (2017)Ajay Mehrotra (American Bar Foundation & Northwestern) presents The VAT Laggards: A Comparative History of Japanese and U.S. Resistance to the Value-Added Tax (with Hiroyasu Nomura (Dokkyo University, Japan)) at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

Since 1945 the fiscal histories of Japan and the United States have had a great deal in common. Not only have these two advanced industrial nations relied for decades on progressive income taxes as their main source of national revenue; in the process, both countries resisted for many years the global trend towards broad-based consumption taxes. Indeed, until the 1980s, Japan and the United States were among a very small group of highly developed and industrialized nations that avoided the worldwide embrace of the value-added tax (VAT) — one of the most popular forms of broad-based consumption taxes. The Japanese resistance to the VAT ended in 1989. In that year, Japan enacted a VAT and participated in the third and perhaps most widespread phase of VAT adoption across the globe. Yet, the United States has continued to resist this global trend.

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January 26, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Wednesday, January 25, 2017

Chodorow Presents The Parsonage Exemption Today At Pepperdine

Chodorow (2014)Adam Chodorow (Arizona State) presents The Parsonage Exemption at Pepperdine today as part of our Tax Policy Workshop Series funded in part by a generous gift from Scott Racine:

The parsonage exemption allows “ministers of the gospel” to exclude the value of housing benefits from income, whether received in-kind or as a cash allowance. Critics argue that the provision is unconstitutional, and the dispute is likely to make it to the Supreme Court. This Article fills an important gap in the debate over the parsonage exemption by offering a nuanced explanation of how it and other housing provisions function within the tax code. Placing the parsonage exemption in its proper tax context makes clear that (1) other tax-free housing provisions and exemptions for religious organizations cannot provide the parsonage exemption constitutional cover; (2) the parsonage exemption involves significantly more entanglement than would the generally applicable housing provision; (3) permitting ministers to receive tax-free housing violates the core tax principles of horizontal and vertical equity; and (4) other exemptions for religious organizations cannot justify the parsonage exemption.

January 25, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Stewart Presents Transnational Tax Law And The Future Of The Tax State Today At Toronto

StewartMiranda Stewart (Australian National University & University of Melbourne) presents Transnational Tax Law and the Future of the Tax State at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

There is a growing contemporary literature about transnational law. Until recently this has not been a concept adopted in the tax law context, although there is a substantial literature on international tax law, including in bilateral and multilateral treaties and even suggested as international customary law (Avi-Yonah 2006). Tax law has been a bastion and expression of national sovereignty, funding public goods in the nation state, which developed through the 20th century in many countries as a "tax state". Recently, Genschel and Rixen (2015) proposed and analysed the strengths and limitations of a “transnational legal order” of international tax. This paper asks whether transnational tax law really exists and if so, what does it mean for the tax state? What is the authority and legitimacy of transnational tax law? Who are its legislators, subjects, agents, interpreters and enforcers in national or international spheres?

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January 25, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, January 24, 2017

Batchelder Presents Accounting For Behavioral Biases In Business Tax Reform At NYU

BatchelderLily Batchelder (NYU) presented Accounting for Behavioral Biases in Business Tax Reform: The Case of Expensing at NYU yesterday as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

One of the fundamental questions in business tax reform is whether to allow firms to immediately expense investments or require economic cost recovery. The conventional view is that expensing would generate stronger growth effects holding revenues constant. This view is rooted in traditional models of corporate finance that assume firms look at the net present value of expected tax payments when incorporating taxes into investment decisions. But this traditional view ignores the possibility that firms focus on more salient measures of taxes as well. If so, they may respond less to expensing than this theory suggests because expensing does not lower their financial accounting tax liability and, all else equal, requires a higher statutory rate.

This paper considers whether firms undervalue expensing due to a focus on these non-economic tax metrics and, if so, what this implies about business tax reform if the goal is to increase US investment. It develops a framework for what cost recovery rules are optimal, and then uses new and existing data to parameterize this framework, holding constant long-run revenues and the relative tax treatment of debt and equity. 

Continue reading

January 24, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Speck Presents Expertise And International Tax Norms Today At Georgetown

SpeckSloan Speck (Colorado) presents Expertise and International Tax Norms at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

This paper explores how a particular framework for understanding international taxation — a framework driven by so-called international tax neutrality norms — developed among economists and legal academics in the 1960s and subsequently became entrenched among public-sector policymakers. The neutrality norm framework marks a turn from the instrumental use of international taxation in the 1950s toward an efficiency-oriented approach towards international taxation. Although some scholars question the usefulness of this turn towards efficiency, the neutrality norm framework continues to dominate discussions about international tax policy today. This paper traces the intellectual history of the neutrality norm framework: how it emerged in the late 1950s, and how it became a durable framework for understanding international tax policy.

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January 24, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, January 23, 2017

Holderness Presents The Unexpected Role Of Tax Salience In State Competition For Businesses At Washington U.

Holderness (2017)Hayes Holderness (Illinois VAP, moving to Richmond) presented The Unexpected Role of Tax Salience in State Competition for Businesses, 84 U. Chi. L. Rev. ___ (2017), at Washington University last week as part of its Faculty Workshop Series:

Competition among the states for mobile firms and the jobs and infrastructure they can bring is a well-known phenomenon. However, in recent years, a handful of states have added a mysterious new tool to their kit of incentives used in this competition. Unlike more traditional incentives, these new incentives — which this Article brands “customer-based incentives” — offer tax relief to a firm’s customers rather than directly to the firm. The puzzle underling customer-based incentives is that tax relief provided to the firm’s customers would seem more difficult for the firm to capture than relief provided directly to the firm — strange, as a state’s primary goal is to subsidize the firm’s investment in the state.

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January 23, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Lederman Presents Does Enforcement Crowd Out Voluntary Tax Compliance? Today At Florida

LedermanLeandra Lederman (Indiana-Bloomington) presents To What Extent Does Enforcement Crowd Out Voluntary Tax Compliance? at Florida today as part of its Tax Policy Colloquium Series:

Tax collectors generally use enforcement methods, such as audits and the imposition of penalties, to deter noncompliance with tax laws. Although this approach is consistent with most economic modeling of tax compliance, some scholars caution that enforcement may backfire, “crowding out” taxpayers’ intrinsic motivations to pay taxes to such an extent that they reduce their tax payments. This article analyzes the existing evidence to determine if and when this occurs. Field studies suggest that enforcement tools, such as audits, are effective deterrents, generally greatly increasing tax collections.

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January 23, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Pepperdine Tax Policy Workshop Series (Spring 2017)

Here is the schedule for my Spring 2017 Pepperdine Tax Policy Workshop Series:

I will of course blog each professor's paper on the day of their presentation.  Southern California professors and practitioners are welcome to attend any of the sessions (11:00 a.m. - 12:30 p.m.) — just let me know.

Pepperdine Law School (2016)

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January 23, 2017 in Colloquia, Legal Education, Scholarship, Tax | Permalink | Comments (0)

Thursday, January 19, 2017

Bankman Presents The Global Battle To Capture MNE Profits Today At Duke

Bankman (2016)Joseph Bankman (Stanford) presents Collecting the Rent: The Global Battle to Capture MNE Profits (with Mitchell Kane (NYU) & Alan O. Sykes (Stanford)) at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

This paper explores the various tools available to jurisdictions in their quest to capture MNE rents. As we shall see the arsenal is an expansive one, including various forms of income and consumption taxation, government purchasing programs, price regulation, antitrust, and common trade instruments such as tariffs or quotas. ...

The paper is organized as follows. In part I we define terms and outline some legally relevant sources of MNE economic rent. Part II covers the basic descriptive analysis of how jurisdictions may seek to capture economic rent through the tax system. To aid analysis here we will work with three stylized, illustrative MNEs, which we will refer to simply as Computer, Pharma, and Coffee. These are meant to capture in a simple way the fact that MNE rents are likely to have different origins across different sectors and that different sectors are thus likely to present different challenges to jurisdictions seeking to capture such rents.

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January 19, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Hemel Presents Federalism As A Safeguard Of Progressivity Today At Indiana

HemelDaniel Hemel (Chicago) presents Federalism as a Safeguard of Progressivity at Indiana-Bloomington today as part of its Tax Policy Colloquium Series hosted by Leandra Lederman:

This article considers the distributional consequences of the Supreme Court’s federalism jurisprudence over the past quarter century, focusing specifically on the anti-commandeering and state sovereign immunity doctrines. The first of these doctrines prevents Congress from compelling the states to administer federal programs; the second prohibits Congress from abrogating state sovereign immunity outside a limited class of cases. Each of these doctrines vests the states with a valuable entitlement protected by a property rule and allows the states to sell the entitlement back to Congress for a price. In this respect, the doctrines have an intergovernmental distributional effect, shifting wealth from the federal government to the states.

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January 19, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Wednesday, January 18, 2017

Rostain Presents Lessons From The Tax Shelter Wars At University Of British Columbia

RostainTanina Rostain (Georgetown) delivered the J. Donald Mawhinney Lectureship in Professional Ethics at the University of British Columbia Allard School of Law on Lessons from the Tax Shelter Wars: Tax Advice, Organizational Wrongdoing, and Enforcement Challenges:

The turn of the 21st Century saw the development of an enormous tax shelter industry in the United States. Aided by prestigious law firms, tax professionals at major accounting firms — including KPMG, Ernst & Young, and PricewaterhouseCoopers — created a widespread market in abusive shelters, which allowed corporate and individual taxpayers to eliminate billions of dollars in taxes owed. As tax shelter activity proliferated, government authorities were faced with increasingly complex regulatory challenges and were ultimately forced to resort to criminal prosecutions to stem the tide of tax shelter activity.

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January 18, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Thursday, January 12, 2017

Morse Presents Entrepreneurship Incentives For Resource-Constrained Firms Today At Duke

Morse (2017)Susan Morse (Texas) presents Entrepreneurship Incentives for Resource-Constrained Firms at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

How should entrepreneurship and innovation policy account for the fact that different firms have different access to capital? The firms that can more easily claim tax and other legal incentives targeted at encouraging innovation are often large established firms with ready access to capital. But there is no reason to think that large, established firms are best suited to the pursuit of entrepreneurial goals. To the contrary, new firms, such as resource-constrained startups, may have an advantage when it comes to pursuing entrepreneurship and innovation.

The typical resource-constrained firm considered in this chapter is a new, loss-making firm. Legal incentives, including tax incentives, for entrepreneurial action often offer a deal that is unappealing to such a firm. This is because such incentives often require an up-front investment in exchange for a delayed, uncertain payoff.  A firm must expend resources to respond to the law. But the legal incentives often do not offer any definite benefit, let alone any immediate benefit, in exchange for the up-front expenditure. ...

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January 12, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Wednesday, December 7, 2016

Grinberg Presents Issues To Consider In The EU State Aid Investigations Today At Pennsylvania

GrinbergItai Grinberg (Georgetown) presents Issues to Consider in the EU State Aid Investigations at Pennsylvania today as part of its Tax Policy Workshop Series hosted by Chris Sanchirico and Reed Shuldiner:

  • Washington Will Not Let Brussels Have the Last Word on Apple, Financial Times op-ed, Sept. 1, 2016
  • EU State Aid Investigations Demand an Aggressive Response, 83 Tax Notes Int'l 611 (Aug. 15, 2016) (Abstract: This article is the first in a multi-part series addressing the concerns raised by the European Commission’s state aid investigations. In this installment, the authors provide background on the state aid investigations and describe the ways in which these investigations represent a sharp departure from past commission practice. Subsequent pieces will respectively address the tax, investment law, and trade law concerns raised by the commission’s investigations.)

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December 7, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, December 6, 2016

Amiram Presents Tax Avoidance At Public Corporations Driven By Shareholder Taxes Today At Columbia

AmiranDan Amiram (Columbia) presents Tax Avoidance at Public Corporations Driven by Shareholder Taxes: Evidence from Changes in Dividend Tax Policy (with Andrew M. Bauer (Illinois) & Mary Margaret Frank (Virginia)) at Columbia today as part of its Davis Polk & Wardwell Tax Policy Colloquium Series hosted by Alex Raskolnikov and Wojciech Kopczuk:

We exploit exogenous changes in country-level corporate-shareholder tax integration systems to identify the effect of investor-level taxes on corporate tax avoidance. Specifically, we rely on the elimination of imputation systems by European countries in different years, in response to supranational judicial rulings. Under an imputation system, lowering corporate tax payments does not increase the cash flows available to shareholders after dividend taxes, but it does so after their elimination. Using a difference-in-difference model with fixed effects, we find that the average firm affected by the change reduces its cash effective tax rate by 17% relative to the eliminating group’s average statutory tax rate. Additional placebo tests provide evidence that supports this effect is present only in the countries and years in which the elimination occurs. Our results are partially driven by shifting income to foreign countries. Lastly, as expected, our results are more pronounced in closely held firms, firms with lower foreign income and firms with higher dividend payout.

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December 6, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, December 5, 2016

Markovits Presents Meritocracy And Its Discontents Today At NYU

MarkovitsDaniel Markovits (Yale) presents Meritocracy and Its Discontents at NYU today as part of its High-End Inequality Colloquium Series (more here) hosted by Robert Frank (Cornell) and Dan Shaviro (NYU):

Aristocracy and meritocracy are commonly considered opposed, even opposite, ideals. According to the common view, where aristocracy entrenches fixed accidents of birth, meritocracy promotes equality of opportunity. And where aristocracy allocates advantage according to morally arbitrary heredity, meritocracy allocates advantage to track morally meaningful contributions to the social product, or common good.

In fact, the meritocratic achievement that we celebrate today, no less than the aristocratic virtue acclaimed in the ancien régime, is again a sham. What is conventionally called merit is actually an ideological conceit, constructed to launder a fundamentally unjust allocation of advantage.

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December 5, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (2)

Wednesday, November 30, 2016

Dyreng Presents Trade-offs In The Repatriation Of Foreign Earnings Today At Pennsylvania

DyrengScott D. Dyreng (Duke) presents Trade-offs in the Repatriation of Foreign Earnings (with Kevin S. Markle (Iowa) & Jon C. Medrano (Iowa)) at Pennsylvania today as part of its Tax Policy Workshop Series hosted by Chris Sanchirico and Reed Shuldiner:

We examine repatriations of foreign earnings that have been designated as indefinitely reinvested. U.S. firms can repatriate foreign earnings without an immediate tax cost when there is a domestic loss, which frees the earnings to be used domestically. But using the domestic loss to offset repatriation taxes reduces financial accounting income, and removes a real option to tax deferral. We show that firms are more likely to repatriate indefinitely reinvested foreign earnings in domestic loss years, but they are less likely to repatriate when financial reporting incentives are strong.

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November 30, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, November 28, 2016

Morse Presents Trickle-Down Consumption Today At NYU

MorseAdair Morse (UC-Berkeley) presents Trickle-Down Consumption (with Marianne Bertrand (Chicago)) at NYU today as part of its High-End Inequality Colloquium Series (more here) hosted by Robert Frank (Cornell) and Dan Shaviro (NYU): :

Have rising income and consumption at the top of income distribution since the early 1980s induced households in the lower tiers of the distribution to consume a larger share of their income? Using state-year variation in income level and consumption in the top first quintile or decile of the income distribution, we find evidence for such "trickle-down consumption." The magnitude of effect suggests that middle income households would have saved between 2.6 and 3.2 percent more by the mid-2000s had incomes at the top grown at the same rate as median income.

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November 28, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, November 22, 2016

Alstott Presents A New Deal For Old Age: Toward A Progressive Retirement Today At Columbia

Old AgeAnne Alstott (Yale) presents A New Deal for Old Age: Toward a Progressive Retirement at Columbia today as part of its Davis Polk & Wardwell Tax Policy Colloquium Series hosted by Alex Raskolnikov and Wojciech Kopczuk:

A growing chorus of policy analysts is calling for an increase in the Social Security retirement age. Even staunch defenders of Social Security have begun to concede that the retirement age of 66 is too low, in light of the increasing longevity, improving health, and expanding work options of older Americans. Still, some progressives worry that the only way to protect disadvantaged workers is to leave the early and full retirement ages as they are. The result is a debate that pits intergenerational fairness against intragenerational fairness: either we shortchange the young (by paying unneeded benefits to the old) or else we shortchange the disadvantaged (by raising the retirement age to levels that are unrealistic for low-earners).

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November 22, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, November 21, 2016

Shaviro Presents The Mapmaker’s Dilemma In Evaluating High-End Inequality Today At NYU

Shaviro (2015)Daniel Shaviro (NYU) presents The Mapmaker’s Dilemma in Evaluating High-End Inequality at NYU today as part of its High-End Inequality Colloquium Series (more here):

The last thirty years have witnessed rising income and wealth concentration among the top 0.1 percent of the population, leading to intense political debate regarding how, if at all, policymakers should respond. Often, this debate emphasizes the tools of public economics, and in particular optimal income taxation. However, while these tools can help us in evaluating the issues raised by high-end inequality, their extreme reductionism — which, in other settings, often offers significant analytic payoffs — here proves to have serious drawbacks.

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November 21, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Wednesday, November 16, 2016

Burman Presents Is U.S. Corporate Income Double-Taxed? Today At Pennsylvania

Burman (2016)Leonard E. Burman (Tax Policy Center) presents Is U.S. Corporate Income Double-Taxed? (with Kimberly Clausing (Reed College)) at Pennsylvania today as part of its Tax Policy Workshop Series hosted by Chris Sanchirico and Reed Shuldiner:

Every public finance student learns that corporations are subject to two levels of taxation—at the company level through the corporate income tax and the individual level through taxation of dividends and capital gains. Though observers frequently lament this double taxation of equity-financed corporate investment, double taxation is not important per se; the issue is the overall level of tax. (Most investors would prefer two 10 percent taxes to a single 30 percent tax.) Still, the overall effective tax rate depends on both corporate and individual income taxes.

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November 16, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Shanske Presents Equitable Apportionment In The Age Of Single Sales Factor Apportionment Today At Northwestern

ShanskeDarien Shanske (UC-Davis) presents What is Equitable Apportionment For in the Age of Single Sales Factor Apportionment? A Study of the Evolution of State Corporate Income Taxes at Northwestern today as part of its Advanced Topics in Taxation Workshop Series hosted by Sarah Lawsky:

Over 40 states impose a corporate income tax. Each of these states use a formula to apportion the share of a multistate corporation’s income to the state. All of these states also permit both the government and the taxpayer to challenge the result of the formula if the results “do not fairly represent the extent of the taxpayer’s business activity in this State.” This is equitable apportionment. Needless to say, terms such as “fair” invite dispute, but it seemed there was at least some sense of how equitable apportionment was to work, at least until recently.

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November 16, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Tuesday, November 15, 2016

Dynarski Presents Tax Benefits Of College Attendance Today At Columbia

DynarskiSusan Dynarski (Michigan) presents Tax Benefits of College Attendance at Columbia today as part of its Davis Polk & Wardwell Tax Policy Colloquium Series hosted by Alex Raskolnikov and Wojciech Kopczuk:

National efforts to promote college enrollment are increasingly delivered through tax-based assistance, including tax credits and deductions for tuition and fees, tax-advantaged college savings plans, and student loan interest deductions. This paper outlines the main tax-based student aid programs and describes their history and growth over time. We then provide an economic perspective on tax-based student aid, and an assessment of their impact on student behavior. We conclude with a discussion of what the tax system does particularly well and what it does particularly poorly in comparison to traditional Department of Education-based student aid programs, and highlight opportunities for productive reform. 

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November 15, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Viard Presents Progressive Consumption Taxation: The X-Tax Revisited At NYU

PCT 2Alan Viard (American Enterprise Institute) presented Progressive Consumption Taxation: The X Tax Revisited (2012) at NYU yesterday as part of its High-End Inequality Colloquium Series (more here) hosted by Robert Frank (Cornell) and Dan Shaviro (NYU):

The United States is alone among industrialized countries in having no broad-based consumption tax at the national level. Yet, economic analysis suggests that consumption taxation is likely to be superior to income taxation, because it does not penalize saving and investment. This book proposes to completely replace the income tax system with a progressive consumption tax. This approach avoids the problems arising from the adoption of a consumption tax alongside the income tax and also avoids the distributional problems posed by regressive consumption taxes, such as the VAT.

This book argues that the Bradford X tax, developed by the late David Bradford, offers the best form of progressive consumption taxation. The X tax modifies the VAT, so that it no longer imposes a flat-rate tax on all consumption. It splits the value-added tax base, which equals aggregate consumption, into two components, wages and business cash flow. The X tax achieves progressivity by applying graduated tax rates to wages and a high flat tax rate to business cash flow, which reflects consumption financed from wealth accumulated prior to the reform and from above-normal business investment returns, which largely accrue to well-off households.

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November 15, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, November 14, 2016

Blank Presents The Timing Of Tax Transparency Today In London

Blank (2016)Joshua D. Blank (NYU) presents The Timing of Tax Transparency, 90 S. Cal. L. Rev. ___ (2017), at Queen Mary University of London School of Law today as part of its Centre for Commercial Law Studies Speaker Series:

Fairness in the administration of the tax law is the subject of intense debate in the United States. As recent headlines reveal, the Internal Revenue Service has been accused of failing to enforce the tax law equitably in its review of tax-exempt status applications by political organizations, the international tax structures of multinational corporations, and the estate tax returns of millionaires, among other areas. Many have argued that greater “tax transparency” would better empower the public to hold the IRS accountable and the IRS to defend itself against accusations of malfeasance. Mandatory public disclosure of taxpayers’ tax return information is often proposed as a way to achieve greater tax transparency. Yet, in addition to concerns regarding exposure of personal and proprietary information, broad public disclosure measures pose potential threats to the taxing authority’s ability to enforce the tax law.

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November 14, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

McLaughlin Presents Keeping The Perpetual In Tax-Deductible Perpetual Conservation Easements Today At Loyola-L.A.

McLaughlinNancy McLaughlin (Utah) presents Keeping the Perpetual in Tax-Deductible Perpetual Conservation Easements at Loyola-L.A. today as part of its Tax Policy Colloquium Series hosted by Ellen Aprill and Katherine Pratt:

Section § 170(h) of the Internal Revenue Code authorizes a federal charitable income tax deduction for the donation of conservation easements and façade easements provided, among other things, that the easements are “granted in perpetuity” and their conservation purposes are “protected in perpetuity.” This deduction has been one of the driving forces behind the dramatic growth in the use of easements as land protection and historic preservation tools over the last several decades. The deduction has also, however, been subject to abuse. Over the past decade, courts have issued more than eighty opinions in cases involving challenges to claimed § 170(h) deductions. This case law reveals various forms of noncompliance and abuse, including persistent overvaluation of easements, failure to properly substantiate the claimed deductions, failure to satisfy one or more of the conservation purposes tests set forth in § 170(h), and failure to comply with “perpetuity” requirements set forth in § 170(h) and the Treasury Regulations.

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November 14, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Thursday, November 10, 2016

Lucas Presents Psychological Barriers To An Efficient Carbon Tax At George Mason

LucasGary Lucas (Texas A&M) presented Psychological Barriers to an Efficient Carbon Tax at George Mason yesterday as part of its Public Choice Seminar Series hosted by the Center for Study of Public Choice:

The Paris Agreement on climate change and the federal government’s recent efforts to regulate carbon emissions suggest that the United States is starting to take global warming seriously. According to economists, a carbon tax would be the most effective and economically efficient way to address the problem. The American public, however, strongly opposes taxing carbon. The public’s opposition is not rooted in climate change denialism. In fact, the public supports government action on global warming, but it eschews taxation in favor of “green” subsidies and command-and-control regulations that would make global warming mitigation incredibly expensive and perhaps even infeasible.

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November 10, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Wednesday, November 9, 2016

Polsky Presents The Up-C Revolution Today At Pennsylvania

Polsky (2015)Gregg D. Polsky (Georgia) presents The Up-C Revolution (with Adam H. Rosenzweig (Washington University)) at Pennsylvania today as part of its Tax Policy Workshop Series hosted by Chris Sanchirico and Reed Shuldiner:

Over the past few years, a revolutionary new tax structure, known as the Up-C, has become increasingly popular, particularly in instances where an LLC is being taken public. In such an Up-C IPO, a newly formed C corporation is placed on top of the existing LLC, which continues to operate the business. Shares of the C corporation are sold to new investors, and the proceeds are used by the C corporation to buy an interest in the LLC. Meanwhile, the legacy owners of the LLC (typically, founders and private investment funds) retain their interests in the LLC, while receiving exchange rights that allow them to swap their LLC interests for equivalent-value shares of the C corporation. In addition, the legacy owners often receive the benefit of tax receivables agreements (TRAs), which provide that the owners will receive a specified percentage (usually 85 percent) of the tax benefits to the C corporation resulting from future exchanges. In combination, these features seem to provide a near-nirvana of tax efficiency. It is therefore unsurprising that the popularity of Up-Cs is growing at an exponential rate.

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November 9, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, November 7, 2016

Kuziemko Presents Redistribution In An Age Of Rising Inequality Today At NYU

KuziemkoIlyana Kuziemko (Princeton) presents Support for Redistribution in an Age of Rising Inequality: New Stylized Facts and Some Tentative Explanations (with Vivekinan Ashok (Yale) & Ebonya Washington (Yale)) today at the NYU High-End Inequality Colloquium Series (more here) hosted by Robert Frank (Cornell) and Dan Shaviro (NYU):

Despite the large increases in economic inequality since 1970, American survey respondents exhibit no increase in support for redistribution, in contrast to the predictions from standard theories of redistributive preferences. We replicate these results but further demonstrate substantial heterogeneity by demographic groups. In particular, the two groups who have most moved against income redistribution are the elderly and African-Americans. We find little evidence that these subgroup trends are explained by relative economic gains or growing cultural conservatism, two common explanations. We further show that the elderly trend is uniquely American, at least relative to other developed countries with comparable survey data. While we are unable to provide definitive evidence on the cause of these two groups' declining redistributive support, we offer additional correlations which may offer fruitful directions for future research on the topic.

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November 7, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (1)