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Monday, September 22, 2014

Oei Presents Human Equity? Regulating the New Income Share Agreements Today at Loyola-L.A.

OeiShu-Yi Oei (Tulane) presents Human Equity? Regulating the New Income Share Agreements (with Diane M. Ring (Boston College)) at Loyola-L.A. today as part of its Tax Policy Colloquium Series:

A controversial new financing phenomenon has recently emerged. New “income share agreements” (“ISAs”) enable an individual to raise funds by pledging a percentage of her future earnings to investors for a certain number of years. These contracts, which are offered by entities such as Fantex, Upstart, Pave, and Lumni, raise important questions for the legal system: Are they a form of modern-day indentured servitude or an innovative breakthrough in human financing? How should they be treated under the law?

This Article constitutes the first real attempt in the legal literature to comprehensively address the public policy and legal issues raised by ISAs and to articulate an analytical approach to evaluating and regulating them.

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September 22, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Zwick Presents The Effect of Temporary Tax Incentives on Equipment Investment Today at UC-Berkeley

ZwickEric Zwick (Chicago) presents Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus (with James Mahon (Harvard)) at UC-Berkeley today as part of the Robert D. Burch Center for Tax Policy and Public Finance Seminar:

We estimate the effect of temporary tax incentives on equipment investment using shifts in accelerated depreciation. Analyzing data for over 120,000 firms, we present three findings. First, bonus depreciation raised investment 17.3 percent on average between 2001 and 2004 and 29.5 percent between 2008 and 2010. Second, financially constrained firms respond more than unconstrained firms. Third, firms respond strongly when the policy generates immediate cash flows but not when benefits only come in the future. Implied discount rates are too high to match a frictionless model and cannot be explained entirely by costly finance, unless firms neglect future financial constraints.

September 22, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Johnson Presents Recent Developments Involving Circular 230 and Tax Practitioner Regulation Today at FBA Tax Section Monthly Roundtable

Johnson (Steve)Steve R. Johnson (Florida State) presents Recent Developments Involving Circular 230 and Tax Practitioner Regulation at the Federal Bar Association Tax Section's Federal Tax Practice & Procedure Monthly Roundtable:

The past six months have produced a flood of judicial and agency action involving regulation of tax practitioners by the Service. The courts have suggested substantial limitations upon the Service’s regulatory authority in two recent decisions, and several other cases are pending in which practitioners are challenging other aspects of the Service’s authority. At the same time, the Service has initiated several regulatory efforts to govern practitioners. Professor Johnson, a nationally recognized scholar on tax litigation and procedure, including legislative and administrative law topics in tax, will apprise us of all these developments.

September 22, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Sunday, September 21, 2014

Top 5 Tax Paper Downloads

SSRN LogoThere is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads on SSRN, with a new paper debuting on the list at #5.  The #1 paper is now #20 in all-time downloads among 10,321 tax papers:

  1. [2997 Downloads]  'Competitiveness' Has Nothing to Do with it, by Edward D. Kleinbard (USC)
  2. [332 Downloads]  2013 Developments in Connecticut Estate and Probate Law, by Jeffrey A. Cooper (Quinnipiac) & John R. Ivimey (Reid and Riege, Hartford)
  3. [230 Downloads]  Public Pressure and Corporate Tax Behavior, by Scott Dyreng (Duke), Jeffrey Hoopes (Ohio State) & Jaron Wilde (Iowa)
  4. [170 Downloads]  The OECD'S Flawed and Dated Approach to Computer Servers Creating Permanent Establishments, by Monica Gianni (Florida)
  5. [121 Downloads]  State Law Reporting and Disclosure Mandates Under ERISA, by Albert Feuer

September 21, 2014 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Saturday, September 20, 2014

Tax Papers at Canadian Law & Economics Association Annual Meeting

Toronto

The two-day Annual Meeting of the Canadian Law and Economics Association concludes today at the University of Toronto Faculty of Law. Here are the tax papers:

  • Mirit Eyal-Cohen (Alabama), Downscaling Regulatory Barriers
  • Wei Cui (British Columbia), Understanding Tax Litigation in China: A Systematic Content Analysis of Published Case Law
  • Richard Kaplan (Illinois), Change and Continuity in Fringe Benefit Taxation: Seeking Sense and Sensibility
  • Tak-kei Lai (Copenhagen Business School), Do Treasure Islands Create Firm Value?
  • Adam Michael Lavecchia (Toronto), Does Raising Contribution Limits Lead to More Saving? Evidence from the ‘Catch-up Limit’ Reform
  • Theodore Seto (Loyola-L.A.), Some Implications of Preference-Shifting for Optimal Tax Theory

September 20, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Friday, September 19, 2014

Weekly SSRN Tax Roundup

September 19, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (1)

Thursday, September 18, 2014

Gale & Samwick: The Effects of Income Tax Changes on Economic Growth

William G. Gale (Brookings) & Andrew A. Samwick (Dartmouth), Effects of Income Tax Changes on Economic Growth:

This paper examines how changes to the individual income tax affect long-term economic growth. The structure and financing of a tax change are critical to achieving economic growth. Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates. The net impact on growth is uncertain, but many estimates suggest it is either small or negative. Base-broadening measures can eliminate the effect of tax rate cuts on budget deficits, but at the same time they also reduce the impact on labor supply, saving, and investment and thus reduce the direct impact on growth. However, they also reallocate resources across sectors toward their highest-value economic use, resulting in increased efficiency and potentially raising the overall size of the economy. The results suggest that not all tax changes will have the same impact on growth. Reforms that improve incentives, reduce existing subsidies, avoid windfall gains, and avoid deficit financing will have more auspicious effects on the long-term size of the economy, but may also create trade-offs between equity and efficiency.

Figure 4

Al Jazeera:  Tax Cuts Can Do More Harm Than Good, by David Cay Johnston (Syracuse):

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September 18, 2014 in Scholarship, Tax | Permalink | Comments (0)

Thomas: The Psychic Cost of Tax Evasion

Kathleen DeLaney Thomas (North Carolina), The Psychic Cost of Tax Evasion, 56 B.C. L. Rev. ___ (2015):

Each year, the government loses hundreds of billions of dollars in tax revenue due to underreporting by individual taxpayers. According to standard deterrence theory, policymakers should be able to reduce tax evasion by increasing tax penalties, raising the audit rate, or some combination of the two. This Article refers to these strategies as increasing the “monetary cost” of tax evasion. To date, budgetary limitations and political hurdles have made these strategies difficult for the government to employ.

There is, however, another potential means by which the government can improve tax compliance, apart from raising the monetary cost of evasion. Empirical evidence shows that people experience some form of psychological discomfort when they are dishonest, which may deter them from cheating. This Article proposes employing subtle behavioral interventions that encourage more honest tax reporting by raising the level of psychological discomfort experienced from underreporting. I refer to this approach as increasing the “psychic cost” of tax evasion.

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September 18, 2014 in Scholarship, Tax | Permalink | Comments (1)

Freedman: Designing a General Anti-Abuse Rule: Striking a Balance

Judith Freedman (Oxford), Designing a General Anti-Abuse Rule: Striking a Balance:

This article argues that statutory general anti-avoidance or anti-abuse provisions (GAARs) are an essential part of a modern tax system, since specific legislation will not catch every abuse. Properly drafted GAARs with appropriate protections can give administrators and courts an important tool to use in cases of egregious abuse, but the use must be within a legitimate framework suitable for the jurisdiction in question. GAARs are not the appropriate mechanism for a fundamental rewriting of domestic or international tax law, but they are a valuable element of the statute book in the fight to combat artificial tax arrangements.

September 18, 2014 in Scholarship, Tax | Permalink | Comments (0)

Public Finance Textbooks and the Excess Burdens of Taxation

Public FinanceCecil Bohanon, John Borowitz & James McClure (all of Ball State), Saying Too Little, Too Late: Public Finance Textbooks and the Excess Burdens of Taxation, 11 J. Econ. Watch 277 (2014):

Taxation has several significant excess burdens, including enforcement costs, compliance costs, and deadweight losses. Most estimates find that raising a dollar of tax revenue costs much more than a dollar. Unfortunately, commonly used public finance textbooks do not integrate these costs into discussions of public goods or cost-benefit analyses. Not including these costs means that the optimal levels of public goods will be overestimated. Textbooks say too little, too late about the excess burdens of taxation. They could easily introduce excess burdens early, represent them in public goods diagrams, and integrate them throughout public finance instruction.

September 18, 2014 in Book Club, Scholarship, Tax | Permalink | Comments (1)

Wednesday, September 17, 2014

More on Faculty Development, Faculty Incentives, and Law School Innovation

Following up on my previous post,  Faculty Development, Faculty Incentives, and Law School Innovation:  American Bar Foundation, Analyzing Carnegie's Reach: The Contingent Nature of Innovation:

ABF 3Analyzing Carnegie’s Reach: The Contingent Nature of Innovation, a recent article published in the Journal of Legal Education [63 J. Legal Educ. 585 (2014)] by ABF Research Professor Stephen Daniels (with Martin Katz and William Sullivan), explores curricular innovation and institutional change in American law schools between 2001 and 2011. Since the economic downturn of 2008–09 and the related contraction of the legal market, lawyers, journalists, legal educators and pundits have written and debated about the state of legal education and the need for change. Given rising levels of student debt, and shrinking job prospects, is law school “worth it”? Are law students well prepared to enter the market? Are the schools too beholden to the ranking system of US News and World Report, and other similar outlets? There has been discussion of “failing law schools,” even an influential book by that title by Brian Tamanaha, of Washington University School of Law (University of Chicago Press, 2012), but far too little systematically collected and analyzed data on what efforts law schools have or have not made to change the status quo.

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September 17, 2014 in Legal Education, Scholarship | Permalink | Comments (0)

Aprill: Reconciling Nonprofit Self-Dealing Rules

Ellen P. Aprill (Loyola-L.A.), Reconciling Nonprofit Self-Dealing Rules, 48 Real Prop. Tr. & Est. L.J. 411 (2014):

Charities must serve public rather than private interests. Much of the enforcement effort in this area of the law tries to ensure that such organizations do not engage in impermissible self-dealing, that is, in providing unreasonable benefits to insiders. That is, limits on self-dealing are crucial to regulation of this section. Both state law and federal tax law include provisions designed to prevent such behavior. These laws, however, often exhibit inefficiencies and differences that impose unnecessary burden on organization seeking to comply with applicable law.

State law regulates both trusts and nonprofit corporations. If the organization is formed as a trust, the “no further inquiry rule” of common law applies. Under this rule, a trustee, whether of a charitable trust or a private trust, is per se liable so long as a beneficiary shows that the trustee had a personal interest in the transaction; harm to the trust is irrelevant. If the organization is formed as a corporation, nonprofit corporation statutes generally include requirements as to the procedures for board approval of self-dealing transactions, procedures that, in practice, are usually easy to meet.

Tax law supplies self-dealing rules for organizations exempt under section 501(c)(3) of the Internal Revenue Code. Under federal tax law, public charities must satisfy the so-called intermediate sanction rules, which impose excise taxes on transfers between the organization and an insider that confer an “excess benefit” on the insider. Private foundations, which are section 501(c)(3) organizations that, in general, receive their support from a single individual or corporate source or family group and make grants to other charitable organizations, face stricter rules than public charities regarding self-dealing. They face two-tier excise taxes that in practice prohibit transactions between the private foundation and certain specified insiders, even when the transaction would benefit the organization.

This article uses both the economic theory of deterrence and norms theory to argue for a change to both state law and federal tax law. Using the California nonprofit corporation statute and the availability of individual exemptions from the prohibited transactions rules of ERISA, it argues for advance approval procedures. Making state and federal self-dealing rules as similar as possible would best carry out the rules’ shared purpose. Reconciling these rules would aid nonprofit charitable organizations in adopting a set of operating procedures to ensure compliance with the various laws applicable to them. Similar rules would also render state and federal enforcement easier and more efficient.

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September 17, 2014 in Scholarship, Tax | Permalink | Comments (0)

Tuesday, September 16, 2014

Blank Presents Reconsidering Corporate Tax Privacy Today at UC-Irvine

BlankJoshua D. Blank (NYU) presents Reconsidering Corporate Tax Privacy, 11 N.Y.U. J. L. & Bus. ___ (2014), at UC-Irvine today as part of its Faculty Workshop Series:

For over a century, politicians, government officials and scholars in the United States have debated whether corporate tax returns, which are currently subject to broad tax privacy protections, should be publicly accessible. The ongoing global discussion of base erosion and profit shifting by multinational corporations has generated calls for greater “tax transparency.” Throughout this debate, participants have focused narrowly on potential reactions of a corporation’s managers, shareholders and consumers to a requirement that the corporation publish its own tax return information. There is, however, another perspective: how would the ability of a corporation’s stakeholders and agents to observe other corporations’ tax return information affect the corporation’s compliance with the tax law?

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September 16, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

SSRN Tax Professor Rankings

SSRN LogoSSRN has updated its monthly rankings of 944 American and international law school faculties and 3,000 law professors by (among other things) the number of paper downloads from the SSRN database.  Here is the new list (through September 1, 2014) of the Top 25 U.S. Tax Professors in two of the SSRN categories: all-time downloads and recent downloads (within the past 12 months):

 

 

All-Time

 

Recent

1

Reuven Avi-Yonah (Mich.)

40,041

Reuven Avi-Yonah (Mich.)

6669

2

Paul Caron (Pepperdine)

26,595

Ed Kleinbard (USC)

4504

3

Louis Kaplow (Harvard)

22,889

Richard Ainsworth (BU)

2695

4

D. Dharmapala (Chicago)

20,320

Paul Caron (Pepperdine) 

2627

5

Vic Fleischer (San Diego)

20,071

D. Dharmapala (Chicago)

2509

6

James Hines (Michigan)

19,825

Omri Marian (Florida)

1977

7

Ted Seto (Loyola-L.A.)

19,186

Robert Sitkoff (Harvard)

1949

8

Richard Kaplan (Illinois)

19.073

Richard Kaplan (Illinois)

1915

9

Katie Pratt (Loyola-L.A.)

16,168

Katie Pratt (Loyola-L.A.)

1801

10

Ed Kleinbard (USC)

15,859

Bridget Crawford (Pace)

1794

11

Dennis Ventry (UC-Davis)

15,397

Brad Borden (Brooklyn)

1588

12

Carter Bishop (Suffolk)

15,140

Jen Kowal (Loyola-L.A.)

1558

13

Jen Kowal (Loyola-L.A.)

14,418

Jeff Kwall (Loyola-Chicago)

1497

14

David Weisbach (Chicago)

14,359

Dick Harvey (Villanova)

1436

15

Chris Sanchirico (Penn)

14,253

Louis Kaplow (Harvard)

1434

16

Richard Ainsworth (BU)

14,065

James Hines (Michigan)

1407

17

Robert Sitkoff (Harvard)

13,974

Francine Lipman (UNLV)

1375

18

David Walker (BU)

13,935

Dan Shaviro (NYU)

1348

19

Francine Lipman (UNLV)

13,921

Ted Seto (Loyola-L.A.)

1335

20

Bridget Crawford (Pace)

13,883

David Gamage (UCBerkeley)

1313

21

Brad Borden (Brooklyn)

13,853

Vic Fleischer (San Diego)

1276

22

Herwig Schlunk (Vanderbilt)

12,507

Carter Bishop (Suffolk)

1251

23

Dan Shaviro (NYU)

12,101

David Weisbach (Chicago)

1186

24

Ed McCaffery (USC)

11,748

Gregg Polsky (North Carolina)

1167

25

Wendy Gerzog (Baltimore)

11,733

Chris Sanchirico (Penn)

1129

Note that this ranking includes full-time tax professors with at least one tax paper on SSRN, and all papers (including non-tax papers) by these tax professors are included in the SSRN data.

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September 16, 2014 in Scholarship, Tax, Tax Prof Rankings | Permalink | Comments (1)

Monday, September 15, 2014

Benzarti Presents How Taxing is Tax Filing? Today at UC-Berkeley

UC Berkeley Primary Logo Berkeley BlueYoussef Benzarti (UC-Berkeley, Department of Economics) presents How Taxing is Tax Filing? Leaving Money on the Table Because of Compliance Costs at UC-Berkeley today as part of the Robert D. Burch Center for Tax Policy and Public Finance Seminar:

I use a quasi-experimental design to estimate the burden of complying with the tax code. Employing a sample of US income tax returns, I observe the preferences of taxpayers over itemizing deductions or claiming the standard deduction. Treated taxpayers forgo $800 on average to avoid the cost of itemizing. A revealed preference argument implies that itemizing deductions is as painful as working more than 17 hours at one’s regular job. The amount of foregone benefits is larger for richer households, consistent with the fact that the value of time increases with income. I explore two explanations of the magnitude of the estimates. First, it could be due to an extreme aversion to filing taxes. Such aversion implies that itemizing deductions imposes an aggregate compliance cost of 0.24% of GDP and an extrapolation to filing federal taxes implies that the overall cost of compliance is 1.55% of GDP. Second, if taxpayers are time-inconsistent the revealed preference argument fails, introducing a wedge between foregone benefits and compliance costs. Being present-biased leads taxpayers to forego large benefits even when compliance costs are relatively small. I provide evidence of taxpayers being present-biased. Both explanations - whether driven by preferences or mistakes - suggest that the burden imposed on society by tax compliance is significantly larger than previously estimated. I discuss policy implications of the result.

September 15, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Shurtz Presents Long-Term Care and the Tax Code: A Feminist Perspective Today at Loyola-L.A.

ShurtzNancy Shurtz (Oregon) presents Long-Term Care and the Tax Code: A Feminist Perspective at Loyola-L.A. today as part of its Tax Policy Colloquium Series:

Long-term care is a feminist issue. Not only do women live longer but we suffer more from a multitude of degenerative physical and mental ailments that require supervised and concentrated care. We comprise 70% of the unpaid caregiver and over 90% of the paid caregiver. Because of low wages, interruptions in work for care of children and parents, lower pensions, women have fewer resources and thus may not adequately save or plan for expensive future long-term care expenses. Consequently, women are more likely to use social insurance (Medicare, Medicaid) and long term care insurance. From home care, adult care, continuing care to nursing home care, the tax code provides numerous but ineffective and inequitable subsidies. The tax system favors the purchase of long-term care insurance over savings, fails to value the unpaid caregiving services of family members, and inadequately supports the low-wage care worker. This paper suggests tax reform in addition to non tax reform. The Community Living Assistance Support and Services (CLASS) Act of the Affordable Care Act should be reinstated and funded and the Family Medical Leave Act should be modified and expanded. Eventually, the federal government will probably need to institute a Medicare tax on workers to fund the growing problem of financing and supporting elder care in America.

Vivian Wu (USC) is the commentator.

September 15, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Understanding Thomas Piketty and His Critics

PikettyThe Heritage Foundation: Understanding Thomas Piketty and His Critics, by Curtis S. Dubay & Salim Furth:

Thomas Piketty’s Capital in the Twenty-First Century is a treatise on how wealth inequality evolves in capitalistic economies. Piketty uses data stretching back to the 18th century to describe the historical evolution of wealth and inequality, proposes a model that matches the data, and uses that model to predict rising wealth inequality in the 21st century. He recommends punitive taxes on high incomes and wealth to prevent the scenario that he predicts. However, the best critiques of Piketty have shown that most of the links in his argument are broken. Piketty’s model does not match his data as well as he claims. His prediction of permanently rising wealth inequality rests on two implausible modeling assumptions. And his recommendation of punitive taxes is based on the glib assumption that capital accumulation is unimportant for wage growth, an assumption at odds with the data and even with his own model. As a result, almost nothing in Capital in the Twenty-First Century can be applied usefully to policymaking.

Heritage

September 15, 2014 in Book Club, Scholarship, Tax | Permalink | Comments (3)

Blanchard Takes Issue With Kleinbard's Call for Anti-Inversion Legislation

Tax Analysys Logo (2013) Kimberly S. Blanchard (Weil, Gotshal & Manges, New York), Blanchard Argues Against More Anti-Inversion Rules, 144 Tax Notes 1335 (Sept. 15, 2014):

I write to comment on Edward D. Kleinbard's recent article ['Competitiveness' Has Nothing to Do With It, 144 Tax Notes 1055 (Sept. 1, 2014)] on the subject of "inversions." Kleinbard is, as usual, erudite and funny, but all the erudition and humor in the universe cannot hide the hole in his argument.

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September 15, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Sunday, September 14, 2014

Top 5 Tax Paper Downloads

SSRN LogoThere is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads on SSRN, with a new paper debuting on the list at #5.  The #1 paper is now #20 in all-time downloads among 10,292 tax papers:

  1. [2901 Downloads]  'Competitiveness' Has Nothing to Do with it, by Edward D. Kleinbard (USC)
  2. [326 Downloads]  2013 Developments in Connecticut Estate and Probate Law, by Jeffrey A. Cooper (Quinnipiac) & John R. Ivimey (Reid and Riege, Hartford)
  3. [205 Downloads]  The Futility of Tax Protester Arguments, by Allen D. Madison (South Dakota)
  4. [200 Downloads]  Public Pressure and Corporate Tax Behavior, by Scott Dyreng (Duke), Jeffrey Hoopes (Ohio State) & Jaron Wilde (Iowa)
  5. [159 Downloads]  The OECD'S Flawed and Dated Approach to Computer Servers Creating Permanent Establishments, by Monica Gianni (Florida)

September 14, 2014 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Friday, September 12, 2014

Gamage Presents Analyzing the Optimal Choice of Tax Instruments Today at UCLA

Gamage (2014)David Gamage (UC-Berkeley) presents The Case for Levying (all of) Labor-Income Taxes, Value-Added Taxes, Capital-Income Taxes, and Wealth Taxes: Applying a Framework for Analyzing the Optimal Choice of Tax Instruments, 68 Tax L. Rev. ___ (2014), at UCLA today as part of its Faculty Workshop Series:

Economic analyses of taxation have largely focused on the problems of labor-to-leisure and saving-to-spending distortions. Based on these analyses, the prior literature has generally treated labor-income and consumption taxes as being essentially equivalent, and has also treated capital-income and wealth taxes as being essentially equivalent. Further, based on these analyses, the dominant view in the prior literature has been that neither capital income nor wealth should be taxed.

This Article expands on these prior analyses by incorporating a variety of tax-gaming responses and also administrative and compliance costs. By doing so, this Article argues that it is probably optimal for governments to levy some version of (all of) labor-income taxes, value-added taxes, capital-income taxes, and wealth taxes.

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September 12, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Weekly SSRN Tax Roundup

September 12, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Bird-Pollan: A Check-the-Box Style Regime for Same-Sex Couples’ Tax Filing Status

Jennifer Bird-Pollan (Kentucky), Electing Fairness: A Check-the-Box Style Regime for Same-Sex Couples’ Tax Filing Status, 6 Elon L. Rev. 251 (2014):

This Essay proposes a new regulatory regime in response to the Supreme Court decision in U.S. v. Windsor, overturning Section Three of DOMA. By analogy to the check-the-box regulations, allowing a regulatory election in the face of incongruities in state law, this proposal would allow taxpayers who live in states that do not recognize same-sex marriage to elect to be treated as married for federal tax purposes. While the IRS's issuance of Rev. Rul. 2013-17 allows taxpayers who travel to a so-called "recognizing state" to have a same-sex marriage ceremony performed to be treated as married for tax purposes, there is still a requirement that those taxpayers travel to a state that has same-sex marriage before they can claim the federal tax benefits. This will be especially burdensome to low-income taxpayers, for whom the costs may be prohibitive. These same low-income taxpayers would be especially helped by the tax benefits available in certain instances to taxpayers filing jointly. The Essay considers potential objections to the proposal, and ultimately finds that the proposed regulatory regime, while hopefully only necessary for the short time (as more states enact same-sex marriage laws) will cure an inequity in the tax law.

September 12, 2014 in Scholarship, Tax | Permalink | Comments (0)

Hungerford: Policy Responses to Corporate Inversions

Thomas L. Hungerford (Economic Policy Institute), Policy Responses to Corporate Inversions; Close the Barn Door Before the Horse Bolts:

This report examines some of the issues and policy options regarding corporate inversions. It explains what corporate inversions are, explores common tax features of proposed inversions, analyzes why many corporations are now pursuing inversions, and assesses various policy options to prevent inversions. The report’s main conclusions are:

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September 12, 2014 in Scholarship, Tax, Think Tank Reports | Permalink | Comments (0)

Thursday, September 11, 2014

Weisbach: The Use of Neutralities in International Tax Policy

David Weisbach (Chicago), The Use of Neutralities in International Tax Policy:

This paper analyzes the use of neutrality conditions, such as capital export neutrality, capital import neutrality, capital ownership neutrality, and market neutrality, in international tax policy. Neutralities are not appropriate tools for designing tax policy. They each identify a possible margin where taxation may distort business activities. Because these neutralities cannot be all satisfied simultaneously, however, they do not allow analysts to determine the appropriate trade-offs of these distortions, unlike deadweight loss measures used in other areas of tax policy. International tax policy should instead be tied directly to the reasons for taxing capital income, reasons which are derived from optimal tax or similar models.

September 11, 2014 in Scholarship, Tax | Permalink | Comments (0)

Remus Reviews Rostain & Regan's Confidence Games

ConfidenceDana A. Renus (North Carolina), Confidence Breach: A Breakdown in Professional Self-Regulation, 92 Tex. L. 1599 (2014) (reviewing Tanina Rostain (Georgetown) & Milton C. Regan, Jr. (Georgetown), Confidence Games: Lawyers, Accountants, and the Tax Shelter Crisis (MIT Press, 2014)):

At the turn of the twenty-first century, lawyers at several of the country’s most prestigious law and accounting firms participated in a fraudulent tax shelter scandal that cost the U.S. Treasury billions of dollars. It was not the first time lawyers had participated in a high-profile corporate scandal, nor would it be the last. What was unique was the extent and nature of the lawyers’ involvement. As Mitt Regan and Tanina Rostain explain in their new book, Confidence Games: Lawyers, Accountants, and the Tax Shelter Industry, “[lawyers’] fingerprints were everywhere: on the shelters they designed, the promotional materials they prepared, the client pitches they made, and the opinion letters they drafted and signed.” The resulting scandal, the authors argue, “likely represents the most serious episode of lawyer wrongdoing in the history of the American bar.”

In Confidence Games, Regan and Rostain set out to explain how and why such widespread and pervasive wrongdoing occurred. They challenge the narratives that laid blame on a finite number of bad actors and seek to offer a more comprehensive account of the actors and events that gave rise to the scandal. One of their core insights is that a complete understanding must account for institutional factors and not just individual actors. The authors focus on three factors in particular—a lax regulatory environment, a competitive global economy, and intense organizational pressures within law and accounting firms. In exploring these related causes, Regan and Rostain offer valuable insights on how the structures and cultures of the implicated law and accounting firms undermined and distorted lawyers’ professional judgment. They conclude Confidence Games with promising proposals for improving the regulation of tax practice.

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September 11, 2014 in Book Club, Scholarship, Tax | Permalink | Comments (0)

The Return of Class in American Tax Policy

Guy Charlton (City University of Hong Kong) & Peter Skilling (Auckland University of Technology), Legal and Policy Narratives and the Return of Class in American Tax Policy, 47 Creighton L. Rev. 219 (2014):

In the late 19th and early 20th centuries, tax politics were structured by a bitter class struggle. Much of this struggle revolved around the government's competence to ensure the appropriate liberty, equality of opportunity and fairness to individuals, and the use of governmental power to ameliorate social and economic problems. For much of the 20th century, however, income tax was framed in a “hegemonic logic” in which re-distributive concerns were subordinated to an assumption of the shared benefits of economic growth. This Article discusses the recent return of a class-based politics to income tax politics in the United States. Drawing on the problem definition and narrative analysis literature, it argues that despite the recent resurgence of class-based rhetoric and political action, it is unlikely that America will return to the redistributive zero-sum income tax policies advocated prior to the 1920s. The underlying premises of the historical American liberal state, as evidenced in early substantive due process decisions: liberty, equality, and a distrust of governmental authority, which suggest a continuous fear of governmental power being used to interfere with individual liberty, circumscribes the debate over tax policy and lessens its class basis.

September 11, 2014 in Scholarship, Tax | Permalink | Comments (0)

State Tax Haven Laws

Tax Analysys Logo (2013) Daniel M. Dixon, Michael A. Jacobs, Michael I. Lurie & Jack Trachtenberg (all of Reed Smith), To Blacklist or Not to Blacklist -- The Trend Toward State Tax Haven Laws, 73 State Tax Notes 635 (Sept. 8, 2014):

In this article, the authors discuss tax havens and how states are cracking down on multinational corporations that are perceived as abusing the tax laws of tax haven nations. The authors argue that both of the tax haven tests used by states -- the factor test and tax haven blacklist -- have constitutional issues.

September 11, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Collaboration Networks in Legal Scholarship

Following up on Paul H. Edelman (Vanderbilt) & Tracey E. George (Vanderbilt), Six Degrees of Cass Sunstein: Collaboration Networks in Legal Scholarship, 11 Green Bag 2d 19 (2007):  Ryan Whalen (Northwestern), Top Coauthors in Legal Academia:

The role that collaboration plays in creativity and the production of knowledge is an major focus of my recent research. As such, I’m generally interested in patterns of collaboration. ...  [T]he legal academy’s coauthorship rate appears to be much lower than most social sciences, and more comparable to those seen in the humanities.

The Thomson Reuters Web of Science indexes many legal journals, including about 100 student-edited Law Reviews. The indexing begins in 1956, and between then and now contains data on around 100,000 law review articles. I pulled metadata on all of these articles and used them to create a legal academic coauthorship network. The initial 100,000 papers listed 52,945 unique author names. I selected all the multi-authored pieces and constructed a network with links between any individuals listed as coauthors on these pieces. The result is a network with 11,474 authors, linked together quite sparsely with 12,546 coauthorship relations. ... The table below lists the top 30 collaborators and their number of coauthors. ...

These top 30 are the coauthoring superstars. The vast majority of authors didn’t coauthor at all (they’re excluded from the network) and those who did coauthor tended to only do so with one or two other authors. The diagram below shows this distribution. The x-axis here starts at 1 (because I excluded those with 0 coauthoring relationships) so you can see that over 6000 of our 11,474 authors only coauthored with one other author. The number of academic partnerships drops off quickly before reaching the maximum of 38.

coauthorship_dist

September 11, 2014 in Legal Education, Scholarship | Permalink | Comments (1)

Wednesday, September 10, 2014

Edwards Presents Does Earnings Lockout Make U.S. Multinationals Attractive to Acquirers? Today at Toronto

EdwardsAlex Edwards (University of Toronto, Rotman School of Management) presents Does Earnings Lockout Make U.S. Multinationals Attractive to Acquirers? at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

The ability for deferral of home country taxation on multinationals’ foreign earnings within the U.S. tax code creates an incentive for firms to avoid or delay repatriation of earnings to the U.S. Consistent with this notion, prior research has documented a substantial lockout effect resulting from the current U.S. worldwide tax and financial reporting systems. We hypothesize and find that U.S. domiciled M&A target firms with more locked-out earnings are more attractive M&A targets for foreign bidders and are more likely to be acquired by foreign bidders, compared to domestic bidders. The effect is economically significant; a standard deviation increase in our proxy for locked-out earnings is associated with a 14% relative increase in the likelihood that an acquirer is foreign. We also examine the impact of the home country tax system of the foreign acquirers. Because multinationals facing territorial tax systems are able to shift income to save taxes to a greater extent than firms domiciled in worldwide countries, the advantages for a foreign firm acquiring a U.S. target with locked-out earnings are potentially greater when the foreign firm operates under a territorial tax system. We find that foreign acquirers of U.S. target firms with locked-out earnings are more likely to be residents of countries that use territorial tax systems.

September 10, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Call for Tax Papers: Akron Law Review

AkronFrom Rich Lavoie:  The Akron Law Review is seeking tax articles for its annual tax issue (formerly the  stand-alone Akron Tax Journal).  For more information or to submit an article, contact Nathaniel Tucker.

September 10, 2014 in Scholarship, Tax | Permalink | Comments (0)

Tuesday, September 9, 2014

Zelinsky Presents The Proposed Minnesota Snowbird Tax Today at Minnesota

ZelinskyEdward Zelinsky (Cardozo) presents Apportioning State Personal Income Taxes to Eliminate the Double Taxation of Dual Residents: Thoughts Provoked by the Proposed Minnesota Snowbird Tax, 15 Fla. Tax Rev. 533 (2014), at Minnesota today as part of its Perspectives on Taxation Lecture Series hosted by Kristin Hickman:

In the last two budget cycles, Governor Mark Dayton has proposed what has become known as the “snowbird tax,” suggesting that Minnesota alter its rules governing state income taxation to allow the state to collect more taxes on income realized by individuals who divide their time between Minnesota and another state. Although the Minnesota legislature has not enacted Governor Dayton’s proposal, Professor Zelinsky will use the proposal as a springboard for arguing that states should revisit the laws governing state personal income tax apportionment. In doing so, Professor Zelinsky will contend that states should tax income with respect to which they have source jurisdiction irrespective of residence and income over which they have only residence-based jurisdiction proportionally, based on the part of the year a dual resident spends in each state.

September 9, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Clausing: Swift, Targeted Action Is Needed to Stem Tax Inversions

Kimberly A. Clausing (Reed College), Corporate Inversions:

Recently, there has been a spate of corporate inversions, where U.S. multinational corporations have combined with foreign companies, arranging their corporate structure to locate the residence of the resulting corporation in a foreign country with an attractive corporate tax climate. Several features of the U.S. tax system provide strong incentives for corporate inversion: a high statutory tax rate, a worldwide system of taxation, and limits on income shifting. Corporate inversions allow more flexible access to foreign cash stockpiles and easier shifting of income out of the U.S. tax base. The recent surge in inversions has likely resulted from the large accumulation of unrepatriated foreign cash together with pessimism about the prospect of policy changes that would reduce the U.S. tax burden associated with cash repatriations. If unfettered, corporate inversions are likely to undermine the U.S. tax base, so swift policy action is likely warranted. Inversions can be effectively addressed in a targeted fashion.

September 9, 2014 in Scholarship, Tax | Permalink | Comments (0)

Call for Papers: BC-ACTEC Symposium on The Centennial of the Estate Tax: Perspectives and Recommendations

BC ACTEC 2Boston College Law School and The American College of Trust and Estate Counsel have issued a Call for Papers  for a symposium on The Centennial of the Estate Tax: Perspectives and Recommendations, to be held at Boston College Law School on Friday, October 2, 2015:

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September 9, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

COD Income and Student Loan Debt Forgiveness

Tax Analysys Logo (2013)Kiran Sheffrin, Trapped by Forgiveness: Taxing COD Income, 144 Tax Notes 1191 (Sept. 8, 2014):

In this article, Sheffrin discusses the student loan debt crisis and problems with the current proposals for reform. She identifies two ways that the tax treatment of forgiven student loans can be used to achieve policy goals: partial recognition of cancellation of indebtedness income based on a household’s ability to pay, and spreading the payment of amounts owed over a fixed number of years.

September 9, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Monday, September 8, 2014

Hauer Presents The Virtues of Dual Tier Capital Taxation Today at UC-Berkeley

UC Berkeley Primary Logo Berkeley BlueAndreas Hauer (University of Munich) presents Reforming an Asymmetric Union: On the Virtues of Dual Tier Capital Taxation at UC-Berkeley today as part of the Robert D. Burch Center for Tax Policy and Public Finance Seminar:

The tax competition for mobile capital, in particular the reluctance of small countries to agree on measures of tax coordination, has ongoing political and economic fallouts within Europe. We analyse the e ects of introducing a two tier structure of capital taxation, where the asymmetric member states of a union choose a common, federal tax rate in the rst stage, and then non-cooperatively set local tax rates in the second stage. We show that this mechanism e ectively reduces competition for mobile capital between the members of the union. Moreover, it distributes the gains across the heterogeneous states in a way that yields a strict Pareto improvement over a one tier system of purely local tax choices. Finally, we present simulation results, and show that a dual structure of capital taxation has advantages even when side payments are feasible.

September 8, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Sunday, September 7, 2014

Top 5 Tax Paper Downloads

SSRN LogoThere is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads on SSRN, with a new paper debuting on the list at #5.  The #1 paper is now #22 in all-time downloads among 10,280 tax papers:

  1. [2822 Downloads]  'Competitiveness' Has Nothing to Do with it, by Edward D. Kleinbard (USC)
  2. [511 Downloads]  Guide to FATCA Compliance (Chapter 1, Background and Current Status of FATCA) (LexisNexis 2d ed. 2014), by William Byrnes (Thomas Jefferson), Denis Kleinfeld, & Alberto Gil Soriano
  3. [324 Downloads]  2013 Developments in Connecticut Estate and Probate Law, by Jeffrey A. Cooper (Quinnipiac) & John R. Ivimey (Reid and Riege, Hartford)
  4. [199 Downloads]  The Futility of Tax Protester Arguments, by Allen D. Madison (South Dakota)
  5. [180 Downloads]  Public Pressure and Corporate Tax Behavior, by Scott Dyreng (Duke), Jeffrey Hoopes (Ohio State) & Jaron Wilde (Iowa)

September 7, 2014 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Saturday, September 6, 2014

Hayashi Presents Phantom Income and the Simple Economics of Paying In Kind at Florida

HayashiAndrew Hayashi (Virginia) presented Phantom Income and the Simple Economics of Paying In Kind at Florida yesterday as part of its Graduate Tax Program Colloquium Series:

Modern tax instruments impose cash taxes on non-cash bases. Property taxes, income taxes, gift taxes and estate taxes all must be paid in cash, even though income, gifts and estates only sometimes take the form of cash, and property never does. If it is costly to convert the tax base into cash, taxpayers may suffer from liquidity problems that require them to make painful adjustments to their savings or consumption. Although concern about taxpayer liquidity has shaped tax law and looms large in current debates about wealth taxation, tax accounting, and mark-to-market reforms, the economic factors that influence the welfare costs of cash tax collection have not been explored in a rigorous way. In this paper I present an economic analysis of the liquidity problem, identifying the factors that determine the welfare costs of cash tax collection. I apply this analysis to the property tax and to the taxation of income that accrues before it is received, sometimes called “phantom income.”

September 6, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Friday, September 5, 2014

Weekly SSRN Tax Roundup

Weekly Roundup

September 5, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Cain: Taxation of Same-Sex Couples After United States v. Windsor

Patricia Cain (Santa Clara), Taxation of Same-Sex Couples After United States v. Windsor: Did the IRS Get It Right in Revenue Ruling 2013-17?, 6 Elon L. Rev. 269 (2014):

The tax world for same-sex couples changed dramatically on June 26, 2013, when the United States Supreme Court handed down its decision in United States v. Windsor. The Court ruled that section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. As a result the IRS would be required to recognize same-sex spouses as validly married for tax purposes. There were three major issues facing the IRS after Windsor: (1) Which marriages should be recognized for tax purposes? (2) How much retroactive effect should be given to the decision? (3) Should marriage equivalent statuses such as registered domestic partnerships and civil unions be treated the same as marriages? On August 29, 2013, the IRS issued Revenue Ruling 2013-17 which answered these three questions. This essay asks whether or not the IRS got it right in the ruling and concludes that for the most part it did. However, serious questions are raised by the fact that the IRS refuses to recognize registered partnerships and civil unions as marriages. The essay concludes that more thought should be given to this issue.

September 5, 2014 in Scholarship, Tax | Permalink | Comments (0)

Scholarly Incentives, Scholarship, Article Selection Bias, and Investment Strategies for Today's Law Schools

Dan Subotnik (Touro) & Laura Ross (Touro), Scholarly Incentives, Scholarship, Article Selection Bias, and Investment Strategies for Today's Law Schools, 30 Touro L. Rev. 615 (2014):

Anecdotal evidence supplied by authors suggested that article acceptance by law reviews was based to a significant extent on the affiliation and prestige of the author. The implication for readers was that most law professors could not expect a fair reading and that, indeed, those from 3rd and 4th tier schools had only the feeblest prospects of cracking the top tier. With many aspects of employment tied to law review placement --e.g. faculty recruitment and tenure -- law professors could understand the need to tamp down career expectations. And law students could begin to see the small benefit they got from law review production. 

Table 2

Table 3A

Table 4

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September 5, 2014 in Legal Education, Scholarship | Permalink | Comments (4)

Thursday, September 4, 2014

Morrow: Repealing the Mortgage Interest Deduction

Rebecca N. Morrow (Wake Forest), Billions of Tax Dollars Spent Inflating the Housing Bubble: How and Why the Mortgage Interest Deduction Failed, 17 Fordham J. L. & Fin. L. 751 (2012):

The mortgage interest deduction is an incredibly popular, politically well-supported and hugely expensive tax incentive. Yet economic studies consistently show that the mortgage interest deduction fails to advance its fundamental purpose. It does not increase the rate of homeownership. On the contrary, to the extent that it is effective in influencing human behavior, it does so by inflating home prices and encouraging borrowing against equity. These effects inflated home prices and excessive borrowing contributed to the economic crisis of 2008. In the years leading up to the crisis, Americans spent billions of tax dollars further inflating a dangerously unstable housing bubble. Even if we had the will to change this policy, we did not have the means. The mortgage interest deduction is insensitive to market conditions and resistant to change. These attributes make the mortgage interest deduction bad policy. Rather than perpetuating this costly deduction, Congress should phase it out in its entirety and replace it with targeted tax incentives designed to stimulate the housing market only when the market is weak. Future tax incentives should avoid the structural flaws that caused the mortgage interest deduction to fail by focusing on market responsiveness, timing and flexibility.

September 4, 2014 in Scholarship, Tax | Permalink | Comments (1)

Northwestern Symposium: 100 Years Under the Income Tax

Northwestern (2014)Symposium, 100 Years Under the Income Tax, 108 Nw. U. L. Rev. 767-1136 (2014):

September 4, 2014 in Scholarship, Tax | Permalink | Comments (0)

Wednesday, September 3, 2014

Yin: Stopping Corporate Inversions Sensibly and Legally

Tax Analysys Logo (2013)George K. Yin (Virginia), Stopping Corporate Inversions Sensibly and Legally, 144 Tax Notes 1087 (Sept. 1, 2014):

A recent article by Mindy Herzfeld, What Can Treasury Do About Inversions?, 144 Tax Notes 895 (Aug. 25, 2014), overlooks a simple and sensible alternative available to the Treasury Department that is not of questionable legality. Treasury could submit a proposal to Congress to redefine a corporation's "residence" for tax purposes -- which determines whether the entire panoply of U.S. tax rules applies to it -- based on the location of the enterprise's principal customer base.

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September 3, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Tuesday, September 2, 2014

Symposium: Teaching Trusts & Estates

T&ESymposium, Teaching Trusts and Estates, 58 St. Louis U. L.J. 643-846 (2014):

September 2, 2014 in Legal Education, Scholarship, Tax, Teaching | Permalink | Comments (1)

O'Reilly: Trends in Tax Legal Scholarship

Terrance O'Reilly (Willamette), Tax Legal Scholarship to 1970, 34 Va. Tax Rev. ___ (2014):

This article examines the evolution of method and styles in tax legal scholarship from 1913 through the 1960s. It focuses on legal scholarship published in law reviews. Section I provides some numerical measures of trends in early and mid-twentieth century tax legal scholarship. Section II is a brief survey of significant casebooks and treatises during the period examined. Section III looks at the development of tax legal scholarship through the 1960s, emphasizing trends in style and method.

Table 1

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September 2, 2014 in Scholarship, Tax | Permalink | Comments (1)

Kennedy: DOMA Implications for Employee Benefit Plans

Tax Analysys Logo (2013)Kathryn J. Kennedy (John Marshall), DOMA Implications for Employee Benefit Plans: Round 2, 144 Tax Notes 947 (Aug. 25, 2014):

This report updates Kennedy’s earlier Tax Notes article on employee benefits guidance issued by the IRS and the Department of Labor soon after the Supreme Court’s 2013 decisions in Hollingsworth v. Perry and United States v. Windsor on the constitutionality of the Defense of Marriage Act. The IRS has since issued additional helpful guidance, and there has been a groundswell of federal and state litigation contesting states’ same-sex marriage bans. In this report, Kennedy discusses the current state of affairs and highlights many of the questions not addressed by the IRS and Labor Department guidance. She argues that without additional regulatory guidance, which appears unlikely, those questions will have to be resolved through future litigation.

September 2, 2014 in Scholarship, Structuring a Tax Workshop Series, Tax Analysts | Permalink | Comments (0)

Sunday, August 31, 2014

Top 5 Tax Paper Downloads

SSRN LogoThere is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads on SSRN, with a new paper debuting on the list at #3.  The #1 paper is now #22 in all-time downloads among 10,264 tax papers:

  1. [2722 Downloads]  'Competitiveness' Has Nothing to Do with it, by Edward D. Kleinbard (USC)
  2. [467 Downloads]  Guide to FATCA Compliance (Chapter 1, Background and Current Status of FATCA) (LexisNexis 2d ed. 2014), by William Byrnes (Thomas Jefferson), Denis Kleinfeld, & Alberto Gil Soriano
  3. [311 Downloads]  2013 Developments in Connecticut Estate and Probate Law, by Jeffrey A. Cooper (Quinnipiac) & John R. Ivimey (Reid and Riege, Hartford)
  4. [181 Downloads]  The Futility of Tax Protester Arguments, by Allen D. Madison (South Dakota)
  5. [153 Downloads]  The Most Critical Issue Facing Tax Administration Today -- And What to Do About It, by George K. Yin (Virginia)

August 31, 2014 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Friday, August 29, 2014

Weekly SSRN Tax Roundup

August 29, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Mehrotra: The Intellectual Roots of An Economic Interpretation of the Constitution

Ajay K. Mehrotra (Indiana), Charles A. Beard & The Columbia School of Political Economy: Revisiting the Intellectual Roots of the Beardian Thesis, 29 Const. Comment. 475 (2014):

BeardA century after it was first published, Charles A. Beard’s An Economic Interpretation of the Constitution remains a significant and controversial part of constitutional scholarship and history. Just as Beard sought to historicize the Founders as they drafted and adopted the Constitution, this article attempts to historicize Beard as he researched and wrote his classic text on the Constitution. Because Beard was both a graduate student and professor at Columbia University before and while he researched and wrote his book, this article explores the particular influence that Columbia University’s institutional and intellectual climate may have had on Beard and the writing of An Economic Interpretation of the Constitution.

This article contends that Charles Beard was the product of a unique Columbia tradition of inductive, proto-institutionalist research in political economy – a tradition that at its core sought to meld serious political and historical scholarship with progressive social activism. Yet, in many ways, Columbia’s influence on Beard was more reinforcing than it was revolutionary. Columbia, in other words, facilitated an evolution rather than a dramatic transformation in Beard’s thinking. His time at Columbia provided him with new scholarly perspectives and research methods, but ultimately these new views heightened his innate tension between scholarly objectivity and political advocacy, between his belief in social scientific research and his desires for social democratic reform. In short, Beard’s time at Columbia, as both a student and junior scholar, refined his personal predilections and his early upbringing and education, rather than radically converting him into a new thinker and writer.

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August 29, 2014 in Book Club, Scholarship, Tax | Permalink | Comments (0)

Thursday, August 28, 2014

Marian: Home-Country Effects of Corporate Inversions

Omri Y. Marian (Florida), Home-Country Effects of Corporate Inversions, 90 Wash. L. Rev. ___ (2015):

This article develops a framework for the study of the unique effects of corporate inversions (meaning, a change in corporate-residence for tax purposes) in the jurisdictions from which corporations invert (“home jurisdictions”). Currently, empirical literature on corporate inversions overstates its policy implications. It is frequently argued that in response to an uncompetitive tax environment, corporations may relocate their headquarters for tax purposes, which, in turn, may result in the loss positive economic attributes in the home jurisdiction (such as capital expenditures, R&D activity, and high-quality jobs). The association of tax-residence relocation with the dislocation of meaningful economic attributes, however, is not empirically-supported and is theoretically-tenuous. The article uses case studies to fill this gap. Based on observed factors, the article develops grounded propositions that may describe the meaningful effects of inversions in home jurisdictions. Such propositions may guide future empirical research aimed at identifying the meaningful effects of inversions. The case studies suggest that whether tax-relocation is associated with the dislocation of meaningful economic attributes in home-jurisdictions is a highly contextualized question. It seems, however, that inversions are more likely to be associated with dislocation of meaningful attributes when non-tax factors support the decision to invert.

August 28, 2014 in Scholarship, Tax | Permalink | Comments (0)