TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Wednesday, March 29, 2017

AALS Call For Papers:  The Challenges And Opportunities Of Exotic Hybrids

AALS (2018)The AALS Section on Agency, Partnership, LLCs and Unincorporated Association, in conjunction with the AALS Sections on Taxation, Securities, and Business Associations, have issued a Call for Papers for a program on The Challenges and Opportunities of Exotic Hybrids—Series LLCs, Up-C’s and Master Limited Partnerships at the 2018 AALS Annual Meeting in San Diego:

Business entity structures continue to evolve as legal innovations mature into recognized business association forms. For example, variants on LLC and limited partnership forms can be used to maximize asset protection, leverage tax advantages, access capital markets, and achieve other business objectives. The program will introduce attendees to several “exotic” hybrid structures and discuss the challenges and opportunities associated with each. The program will be informative — inviting subject matter experts to educate audience members — and exploratory, critically examining the tax, governance, private ordering, securities, and policy implications of new entity structuring tools.

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March 29, 2017 in Conferences, Scholarship, Tax | Permalink | Comments (0)

SSRN Tax Professor Rankings

SSRN LogoSSRN has updated its monthly rankings of 750 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 March 1, 2017) 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.)

66,153

Reuven Avi-Yonah (Mich.)

12,003

2

Michael Simkovic (S. Hall)

35,620

Lily Batchelder (NYU)

8575

3

Paul Caron (Pepperdine)

32,790

Michael Simkovic (S. Hall)

4717

4

D. Dharmapala (Chicago)

30,008

D. Dharmapala (Chicago)

4135

5

Louis Kaplow (Harvard)

27,810

Michael Graetz (Columbia)

2928

6

Vic Fleischer (San Diego)

23,507

Ed Kleinbard (USC)

2813

7

James Hines (Michigan)

22,666

Richard Ainsworth (BU)

2711

8

Ed Kleinbard (USC)

22,244

Dan Shaviro (NYU)

2368

9

Richard Kaplan (Illinois)

21,776

William Byrnes (Texas A&M)

2353

10

Ted Seto (Loyola-L.A.)

21,706

Paul Caron (Pepperdine)

2305

11

Richard Ainsworth (BU)

20,033

Louis Kaplow (Harvard)

2292

12

Katie Pratt (Loyola-L.A.)

19,898

Robert Sitkoff (Harvard)

2076

13

Robert Sitkoff (Harvard)

18,633

David Weisbach (Chicago)

1949

14

David Weisbach (Chicago)

18,469

Steven Bank (UCLA)

1871

15

Brad Borden (Brooklyn)

17,978

David Gamage (Indiana)

1836

16

Carter Bishop (Suffolk)

17,918

Omri Marian (UC-Irvine)

1822

17

Chris Sanchirico (Penn)

17,387

Jeff Kwall (Loyola-Chicago)

1795

18

Jen Kowal (Loyola-L.A.)

17,255

Francine Lipman (UNLV)

1663

19

Francine Lipman (UNLV)

17,279

Yariv Brauner (Florida)

1624

20

Dan Shaviro (NYU)

16,833

Jordan Barry (San Diego)

1555

21

Bridget Crawford (Pace)

16,705

Brian Galle (Georgetown)

1540

22

Dennis Ventry (UC-Davis)

16,394

Christopher Hoyt (UMKC)

1502

23

David Walker (Boston Univ.)

15,568

Vic Fleischer (San Diego)

1465

24

Steven Bank (UCLA)

14,590

Brad Borden (Brooklyn)

1450

25

Gregg Polsky (Georgia)

13,712

Bridget Crawford (Pace)

1406

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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March 29, 2017 in Scholarship, Tax, Tax Prof Rankings | Permalink | Comments (0)

Newman:  Should Olympic Medals Be Taxed?

Olympic RingsJoel S. Newman (Wake Forest), Should Olympic Medals Be Taxed?:

Ronda Rousey won the Bronze Medal in judo at the Beijing Olympics in 2008. She was the first American woman to do so. The medal itself would have brought her a measly four bucks, if she had been crass enough to sell it. Her reward from the United States Olympic Committee for her unique accomplishment was, as she put it, “Ten grand and a handshake.” A few months after she came home from Beijing, she was living in her car.

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March 29, 2017 in Scholarship, Tax | Permalink | Comments (0)

Tuesday, March 28, 2017

Yale Presents Mutual Fund Tax Overhang Today At Georgetown

Yale (Ethan) (2017)Ethan Yale (Virginia) presents Mutual Fund Tax Overhang at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

The built-in-gain in a mutual fund’s portfolio is referred to as “tax overhang.” Tax is imposed on investors who buy shares in mutual funds with tax overhang even though the gain accrued before their investment. The consequence is accelerated tax, increasing the shareholders’ effective tax rate. This article (1) explains why this occurs and why it is a problem, (2) describes the magnitude of the problem, (3) describes and illustrates avoidance strategies funds use to avoid the bad effects of tax overhang, (4) argues that reform is warranted, and (5) describes and evaluates the options for reform.

March 28, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Mason Presents A U.S. Perspective On State Aid Today In Luxembourg

Mason (2016)Ruth Mason (Virginia) presents A U.S. Perspective on State Aid at the University of Luxembourg today:

Tax Rulings as State Aid FAQ, 154 Tax Notes 451 (Jan. 23, 2017):

In this report, the first in a series of reports on EU state aid, Mason provides background on state aid law as it applies to income taxes, including the legal standard, recovery mechanism, and case selection by the Commission.

State Aid Special Report — Part 2: Legitimate Expectations, 154 Tax Notes 615 (Jan. 30, 2017):

In this report, the second in a series of reports on EU state aid, Mason evaluates the claims Treasury’ made in its White Paper that recovery in the recent tax ruling cases would violate taxpayers’ legitimate expectations that those rulings did not constitute state aid.

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March 28, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Brooklyn Symposium:  Reconsidering The Tax Treaty

Brooklyn Logo (2016)Symposium, Reconsidering the Tax Treaty, 41 Brook. J. Int'l L. 967-1301 (2016):

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March 28, 2017 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Leff:  Tax Benefits Of Government-Owned Marijuana Stores

CannabisBenjamin M. Leff (American), Tax Benefits of Government-Owned Marijuana Stores, 50 U.C. Davis L. Rev. 659 (2016):

Over a year ago (March 7, 2015), a little store called the Cannabis Corner opened up in the small town of North Bonneville, Washington, about an hour by car from Portland, Oregon. The Cannabis Corner is the first marijuana store to be operated by a “public development authority,” an independent entity created by a state or local government. Public development authorities are generally exempt from federal income taxes under section 115 of the Internal Revenue Code. For a marijuana business, this exemption is especially valuable because section 280E of the Code currently prevents marijuana businesses from deducting many of the ordinary expenses other businesses regularly deduct, resulting in extremely high federal income taxes.

This Article is the first to address whether independent governmental affiliates that sell marijuana are exempt from federal income tax under section 115 of the Internal Revenue Code.

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March 28, 2017 in Scholarship, Tax | Permalink | Comments (0)

Monday, March 27, 2017

Viswanathan Presents Tax Compliance In A Decentralizing Economy Today At Pepperdine

Viswanathan (2017)Manoj Viswanathan (UC-Hastings) presents Tax Compliance in a Decentralizing Economy at Pepperdine today as part of our Tax Policy Workshop Series funded in part by a generous gift from Scott Racine:

Tax compliance in the United States has long relied on information from centralized intermediaries—the financial institutions, employers, and brokers that help ensure income is reported and taxes are paid. Yet while the IRS remains tied to these centralized entities, consumers and businesses are not. New technologies, such as the on-demand sharing platform economy (companies such as Airbnb, Uber, and Instacart) and the blockchain (the platform on which Bitcoin is based) are providing new, decentralized options for exchanging goods and services. Without legislative and agency intervention, these technologies pose a critical threat to the reporting system underlying domestic and international tax compliance.

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March 27, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

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

Burman (2016)Leonard E. Burman (Tax Policy Center) presents Is U.S. Corporate Income Double-Taxed? (with Kimberly Clausing (Reed College)) at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

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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March 27, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Buchanan Presents Social Security Is Fair To All Generations Today At UC-Irvine

BuchananNeil Buchanan (George Washington) presents Social Security is Fair to All Generations: Demystifying the Trust Fund, Solvency, and the Promise to Younger Americans at UC-Irvine today as part of its Tax Law and Policy Colloquium Series hosted by Omri Marian:

The birth of the Baby Boom generation created a profound policy challenge for the Social Security system: Should the system continue to be run as a pay-as-you-go system, or should the large new cohort of workers be forced to save for their own future retirements? Although the outward structure of the Social Security system was not changed, the Baby Boomers were, in fact, required to save for their own retirements. They did so by paying higher taxes than would otherwise have been necessary, thus contributing to total national saving in a way that allowed the economy to grow more quickly than it would have otherwise. In turn, Boomers bequeathed to their children the economic wherewithal to support their parents in retirement, even while the post-Boomers will enjoy higher living standards during both their working lives and in their retirements. It is possible, however, that this supposed generational sacrifice was illusory, that the Baby Boomers were otherwise impoverishing their children and grandchildren, even as they paid extra money into the Social Security system each year.

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March 27, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Schenk Delivers Pugh Lecture Today At San Diego On Horizontal Equity Redux

Schenk (2017)Deborah Schenk (NYU) delivers the annual Richard Crawford Pugh Lecture on Tax Law & Policy at San Diego today on Horizontal Equity Redux:

For many decades, tax policy scholars have defined “equity” in terms of “horizontal equity” and “vertical equity.” In recent years the concept of horizontal equity has come under attack on two grounds: first, that it has no content independent of vertical equity, and second, that its classic definition preferences pretax income without any justification. Yet, the concept has remarkable staying power. All major law casebooks reference horizontal equity, as do many scholarly articles. This lecture explores why that is so and offers both an explanation and a justification for its continued use as a principle of tax policy.

March 27, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Oh:  Are Progressive Tax Rates Progressive Policy?

Jason Oh (UCLA), Are Progressive Tax Rates Progressive Policy?, 92 NYU L. Rev. ___ (2017):

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 this 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.

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March 27, 2017 in Scholarship, Tax | Permalink | Comments (1)

Christians:  BEPS And The New International Tax Order

Allison Christians (McGill), BEPS and the New International Tax Order, 2017 BYU L. Rev. ___:

Nations across the world are currently engaged in a coordinated international effort, ostensibly to curb excessive tax avoidance by the world’s biggest multinational companies. This Article contends, however, that the most likely impact will be to entrench a monopoly held by a small number of rich countries over the policymaking processes that created the tax avoidance problem to begin with. To examine this contention and probe possible solutions to it, the Article examines the legal and institutional components of the coordination project, referred to as Base Erosion and Profit Shifting (BEPS), by situating them historically and analyzing their multi-functionality as both norm diffusion and institutional reinforcement mechanisms.

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March 27, 2017 in Scholarship, Tax | Permalink | Comments (0)

Sunday, March 26, 2017

The 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, with a new paper debuting on the list at #5. The #1 paper is now #103 in all-time downloads among 12,615 tax papers:

  1. [1,664 Downloads]  The Known Unknowns of the Business Tax Reforms Proposed in the House Republican Blueprint, by Michael J. Graetz (Columbia)
  2. [563 Downloads]  How Donald Trump can Keep His Campaign Promises, Grow the Economy, Cut Tax Rates, Repatriate Offshore Earnings, Reduce Income Inequality, Keep Jobs in the United States, and Reduce the Deficit, by David S. Miller (Proskauer, New York)
  3. [439 Downloads]  Accounting for Behavioral Considerations in Business Tax Reform: The Case of Expensing, by Lily L. Batchelder (NYU)
  4. [368 Downloads]  Predicting Stock Market Prices with Physical Laws, by Jack Manhire (Texas A&M)
  5. [258 Downloads]  House Plan's Bad Math: Over-Estimates of Revenue from a Border Adjustment, by David Kamin (NYU) & Brad Setser (Council on Foreign Relations)

March 26, 2017 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Saturday, March 25, 2017

Hickman Presents Restoring The Lost Anti-Injunction Act At British Columbia

Hickman (2017)Kristin Hickman (Minnesota) presented Restoring the Lost Anti-Injunction Act, 103 Va. L. Rev. __ (2017) (with Gerald Kerska (J.D. 2017, Minnesota)), yesterday at University of British Columbia Allard School of Law as part of its Tax Law and Policy Workshop Speaker 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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March 25, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1416:  The Root Problem Is The Law, Not The IRS

Hackney (2017)Philip Hackney (LSU) delivered the Norman A. Sugarman Memorial Lecture in Nonprofit Law at Case Western yesterday on Improving IRS Charity Oversight: Responsible Congressional Delegation, Responsive IRS Rulemaking:

Whether you think it fair or unfair, there is a large segment of American society who believes the IRS targeted conservative groups trying to obtain tax-exempt status from at least 2011-2013, leading to explosive accusations on the professional integrity and political bias of the agency.

In this lecture, Professor Hackney, James E. & Betty M. Phillips Associate Professor of Law, LSU Law Center, will clarify how this charge is unfair or at the least deeply misguided, explaining that root problem is not the alleged political litmus test by the IRS in considering tax exempt status in the charitable sector, but rather the law — both in its construction and implementation.

Congress has provided vague legal standards for the IRS to implement in the tax exempt arena, resulting in costly enforcement attempts that have undermined the public’s confidence that the laws are being enforced in a fair and impartial manner. To solve this issue, Congress should enact standards in this arena, but that the Treasury Department and the IRS ought to implement rules.

This lecture will consider the political, legal, and technical challenges to adopting such a rule-based regime for charity oversight.

See Philip Hackney, Charitable Organization Oversight: Rules v. Standards, 13 Pitt. Tax Rev. 83 (2015).

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March 25, 2017 in IRS News, IRS Scandal, Scholarship, Tax | Permalink | Comments (5)

Friday, March 24, 2017

Weekly SSRN Tax Article Review And Roundup

This week, Daniel Hemel (Chicago) reviews a new paper by Wei Cui (University of British Columbia), Taxation Without Information: The Institutional Foundations of Modern Tax Collection.

HemelWei Cui’s new paper, Taxation Without Information: The Institutional Foundations of Modern Tax Collection, challenges the now-conventional wisdom that effective tax collection depends upon third party reporting. Cui suggests that effective tax collection in fact depends upon the existence of business firms for whom compliance with the law—tax as well as non-tax—is the norm. Cui argues that this insight should lead us to rethink our assumptions not only about modern tax collection, but also about modern business firms: “we should stop thinking of business firms as ‘fiscal intermediaries,’” Cui writes, and instead “conceive of firms as sites of social cooperation under the rule of law” (p. 3).

Cui’s paper is ambitious, important, and—I think—largely right. He has persuaded me that third party reporting is not nearly as integral to tax collection as I previously believed. If there is a weak point in his argument, it is this: the evidence he produces in support of his “social cooperation” theory is equally consistent with the claim that business firms facilitate legal compliance precisely because they fail to engender close cooperation among their members.

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March 24, 2017 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Tulane Hosts 7th Annual Tax Roundtable

Tulane (2015)7th Annual Tulane Tax Roundtable:

Lily Batchelder (NYU)
Accounting for Behavioral Considerations in Business Tax Reform: The Case of Expensing
Discussant:  Steve Sheffrin (Tulane)

Daniel Hemel (Chicago)
The Federalist Safeguards of Progressive Taxation
Discussant:  Lily Faulhaber (Georgetown)

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March 24, 2017 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Thursday, March 23, 2017

Robinson Presents State Income Tax Law In The Shadow Of The Internal Revenue Code Today At Indiana

Robinson (2017)Mildred Robinson (Virginia) presents Irreconcilable Differences?: State Income Tax Law in the Shadow of the Internal Revenue Code at Indiana-Bloomington today as part of its Tax Policy Colloquium Series hosted by Leandra Lederman:

[T]his paper will proceed in four parts. Part I provides a brief history of states’ experience with taxing incomes beginning prior to the enactment of the 16th amendment to the United States constitution and ending with the present. I will touch upon early individual state efforts to tax personal incomes. A salient part of this discussion will highlight the political factors likely to have contributed to states’ decisions to conform to (and not piggy-back onto) the federal internal revenue code. This part will also highlight the ways in which state codes began to depart from the federal code with emphasis on those differences contributing even early on to the regressive effect captured by data currently analyzed by the Institute on Taxation and Economic Policy.

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

Rossi:  Carbon Taxation By Regulation

Jim Rossi (Vanderbilt), Carbon Taxation by Regulation, 102 Minn. L. Rev. ___ (2018):

This Article argues that, even though a carbon tax remains politically elusive, “carbon taxation by regulation” has begun to flourish as a way of financing carbon reduction. For more than a century, energy rate setting has been used to promote public good and redistributive goals, akin to general financial taxation. Various non-tax subsidies in customer energy rates have enormous untapped potential for promoting low-carbon sources of energy, while also balancing broader economic and social welfare goals.

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

Gamage & Shanske:  Why A State-Level Carbon Tax Can Include Border Adjustments

David Gamage (Indiana) and Darien Shanske (UC-Davis), Why a State-Level Carbon Tax Can Include Border Adjustments, 83 State Tax Notes 583 (Feb. 13, 2017):

This essay argues that U.S. state governments can permissibly levy state-level carbon taxes with border tax adjustments.

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

Wednesday, March 22, 2017

Ring Presents Leak-Driven Law Today At Boston College

Ring (2017)Diane Ring (Boston College) presents Leak-Driven Law, 65 UCLA L. Rev. __ (forthcoming 2018) (with Shu-Yi Oei (Tulane; moving to Boston College)) at Boston College today as part of its Tax Policy Workshop Series:

Over the past decade, a number of well-publicized data leaks have revealed the secret offshore holdings of high-net-worth individuals and multinational taxpayers, 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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March 22, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Shanske Presents Equitable Apportionment And The State Corporate Income Tax Today At Duke

Shanske (2017)Darien Shanske (UC-Davis) presents Equitable Apportionment and the State Corporate Income Tax: Past, Present and Possible Future at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

What a tough break for formulary apportionment. We are at a moment when there is apparently a real interest in reforming the federal corporate income tax in a way that, at least in theory, would broaden the base of the tax and encourage exporters. Shifting to the use of formulary apportionment with a single sales factor (SSF) could theoretically achieve these goals and there is at least one well-developed reform proposal to that end on the table. Moreover, over 40 states impose a corporate income tax and they have used formulas for a very long time, and so there is a track record and case law to work with. But this is not — yet — formulary apportionment’s moment.

This is the moment for the Destination-Based Cash Flow Tax (DBCFT), which relies on border tax adjustments (BTAs).

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March 22, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Avi-Yonah Posts Two Tax Papers on SSRN

Reuven S. Avi-Yonah (Michigan) & Haiyan Xu (Michigan), A Global Treaty Override? The New OECD Multilateral Tax Instrument and Its Limits:

The new OECD Multilateral Instrument to amend tax treaties (MLI) is an important innovation in international law. Hitherto, international economic law was built primarily on bilateral treaties (e.g., tax treaties and BITs) or multilateral treaties (the WTO agreements). The problem is that in some areas, like tax and investment, multilateral treaties proved hard to negotiate, but only a multilateral treaty can be amended simultaneously by all its signatories.

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March 22, 2017 in Scholarship, Tax | Permalink | Comments (0)

Schmalbeck, Soled & Thomas:  The Case For A Carryover Tax Basis Regime

Richard Schmalbeck (Duke), Jay A. Soled (Rutgers) & Kathleen DeLaney Thomas (North Carolina), Advocating A Carryover Tax Basis Regime (At Least for Now), 92 Notre Dame L. Rev. ___ (2017):

For close to a century, an important (but unfortunate) feature of the Internal Revenue Code has been a rule that the tax basis of any asset is made equal to its fair market value at death. Notwithstanding the substantial revenue losses associated with this rule, Congress has retained it for reasons of administrative convenience.

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March 22, 2017 in Scholarship, Tax | Permalink | Comments (6)

Byrnes & Munro:  Background And Current Status Of FATCA

LexisWilliam Byrnes (Texas A&M) & Robert J. Munro (Texas A&M), Background and Current Status of FATCA, in LexisNexis Guide to FATCA & CRS Compliance (5th ed., 2017):

The Foreign Account Tax Compliance Act, referred to as FATCA, does not operate in a global tax vacuum. It is nearly impossible to comprehend fully its impact unless its highly technical procedural provisions are viewed in context. This introductory chapter will provide certain background information necessary to understand FATCA, its offspring like the OECD's CRS, and the impact of these initiatives.

FATCA's ostensible purpose was to act as an additional tax revenue source to offset additional spending in the HIRE Act of 2010. FATCA was passed on the unsubstantiated basis that “each year, the United States loses an estimated $100 billion in tax revenue due to offshore tax abuses.” However, the total amount of the offset revenue from FATCA was only projected to $8.714 billion for the ten year period of 2010 to 2020. This chapter explores the revenue raised until 2017 and the offsetting compliance costs.

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March 22, 2017 in Book Club, Scholarship, Tax | Permalink | Comments (0)

Tuesday, March 21, 2017

Hemel Presents The Federalist Safeguards of Progressive Taxation Today At Georgetown

HemelDaniel Hemel (Chicago) presents The Federalist Safeguards of Progressive Taxation at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg.

This essay considers the distributional consequences of the Supreme Court’s federalism jurisprudence over the past quarter century, focusing specifically on the anticommandeering, anti-coercion, and state sovereign immunity doctrines. The first of these doctrines prevents Congress from compelling the states to administer federal programs; the second prevents Congress from achieving the same result through offers that for practical purposes the states cannot refuse; the third prohibits Congress from abrogating state sovereign immunity outside a limited class of cases. These doctrines vest the states with valuable entitlements and allow the states to sell those entitlements 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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March 21, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Bird-Pollan:  Utilitarianism And Wealth Transfer Taxation

Jennifer Bird-Pollan (Kentucky), Utilitarianism and Wealth Transfer Taxation, 69 Ark. L. Rev. 695 (2016):

This article is the third in a series examining the continued relevance and philosophical legitimacy of the United States wealth transfer tax system from within a particular philosophical perspective [Death, Taxes, and Property (Rights): Nozick, Libertarianism, and the Estate Tax, 66 Maine L. Rev. 1 (2013); Unseating Privilege: Rawls, Equality of Opportunity, and Wealth Transfer Taxation, 59 Wayne L. Rev. 713 (2014);]. The article examines the utilitarianism of John Stuart Mill and his philosophical progeny and distinguishes the philosophical approach of utilitarianism from contemporary welfare economics, primarily on the basis of the concept of “utility” in each approach.

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March 21, 2017 in Scholarship, Tax | Permalink | Comments (0)

The Best And Worst States For Business: 90% Of The Top 10 Voted For Trump; 80% Of The Bottom 10 Voted For Clinton

Robert W. McGee (Fayetteville State University), The First McGee Annual Report on the Best and Worst States for Business:

This study is the first annual McGee Report on the best and worst states for business. The fifty states are ranked based on the extent to which they facilitate business creation and expansion. This study incorporated the data collected from five other studies, which included the examination of hundreds of variables. Utah was found to be the most business friendly state; California was least business friendly. States that voted Republican in the 2016 presidential election tended to be more business friendly than states that voted Democratic.

Top 10

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March 21, 2017 in Scholarship, Tax | Permalink | Comments (30)

Kleinbard Presents The Economic And Social Consequences Of Tax Reform At Loyola

Kleinbard (2015)Edward Kleinbard (USC) presented The Economic and Social Consequences of Tax Reform last night at Loyola Marymount University College of Business Administration's Center for Accounting Ethics, Governance, and the Public Interest's Distinguished Speaker Series (flyer):

Wide-ranging tax reform is a tax priority for Congressional Republican leaders and President Trump. Professor Kleinbard will discuss the implications of proposed tax changes for the economy, social programs, and inequality.

March 21, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Monday, March 20, 2017

Hemel Presents The Federalist Safeguards of Progressive Taxation Today At NYU

HemelDaniel Hemel (Chicago) presents The Federalist Safeguards of Progressive Taxation at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Rosanne Altshuler:

This essay considers the distributional consequences of the Supreme Court’s federalism jurisprudence over the past quarter century, focusing specifically on the anticommandeering, anti-coercion, and state sovereign immunity doctrines. The first of these doctrines prevents Congress from compelling the states to administer federal programs; the second prevents Congress from achieving the same result through offers that for practical purposes the states cannot refuse; the third prohibits Congress from abrogating state sovereign immunity outside a limited class of cases. These doctrines vest the states with valuable entitlements and allow the states to sell those entitlements 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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March 20, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Kamin & Setser:  The House Plan's Bad Math — Over-Estimates Of Revenue From A Border Adjustment

David Kamin (NYU) & Brad Setser (Council on Foreign Relations), House Plan's Bad Math: Over-Estimates of Revenue from a Border Adjustment:

One of the largest revenue raisers in the House Republicans’ framework for business tax reform is a “border adjustment.” However, projections of revenue from the border adjustment overstate revenue in two ways.

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

Sunday, March 19, 2017

The Top 5 Tax Paper Downloads

SSRN LogoThis week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list. The #1 paper is now #112 in all-time downloads among 12,595 tax papers:

  1. [1,590 Downloads]  The Known Unknowns of the Business Tax Reforms Proposed in the House Republican Blueprint, by Michael J. Graetz (Columbia)
  2. [525 Downloads]  How Donald Trump can Keep His Campaign Promises, Grow the Economy, Cut Tax Rates, Repatriate Offshore Earnings, Reduce Income Inequality, Keep Jobs in the United States, and Reduce the Deficit, by David S. Miller (Proskauer, New York)
  3. [424 Downloads]  Accounting for Behavioral Considerations in Business Tax Reform: The Case of Expensing, by Lily L. Batchelder (NYU)
  4. [346 Downloads]  Predicting Stock Market Prices with Physical Laws, by Jack Manhire (Texas A&M)
  5. [253 Downloads]  Important Developments in Federal Income Taxation, by Edward A. Morse (Creighton)

March 19, 2017 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Friday, March 17, 2017

Weekly SSRN Tax Article Review And Roundup

This week, David Gamage (Indiana) reviews a new draft article by John R. Brooks (Georgetown), The Definitions of Income, 71 Tax L. Rev. __ (forthcoming).

Gamage (2017)The question of “what is income” is often the starting point for law school tax courses. This question has also been the subject of a number of great debates in tax legal scholarship over the past century. Assessing some of these debates, Brooks argues that “income is not a pure, external concept, but actually a constructed concept that necessarily embodies policy, and therefore political, goals.” As Brooks explains, this conclusion echoes and builds on the arguments of prior giants of tax legal scholarship—especially Boris Bittker.

Brooks’s article makes valuable contributions in summarizing and assessing the intellectual history of debates over the “what is income” question.

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March 17, 2017 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Thursday, March 16, 2017

Positive Legal Education: Flourishing Law Students And Thriving Law Schools

Debra S. Austin (Denver), Positive Legal Education: Flourishing Law Students and Thriving Law Schools:

There is a wellbeing crisis in the legal field and legal education may be the catalyst. Law students are the most dissatisfied, demoralized, and depressed of graduate student populations. The Socratic method is infamous for inducing anxiety in law students and law school grades are often determined by a single final exam at the end of a grueling semester. Law students cite competition, grades, and workload as major stressors, and if legal educators ignore their harmful impact, it will likely suppress learning and fuel illness.

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March 16, 2017 in Legal Education, Scholarship | Permalink | Comments (7)

Wednesday, March 15, 2017

Smart Presents Why The Dividend Tax Credit? Today At Toronto

Smart 2Michael Smart (Toronto) presents Why the Dividend Tax Credit? at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

In this paper, I discuss the tax treatment of personal dividend income in Canada. Incorporating the changing parameters of the dividend gross-up-and-credit system since 1972, including provincial credits, I estimate the effective tax rate on eligible and ordinary dividend income of taxable investors, and compare it to that applying to other income sources. The effective tax rate on dividend income has decreased substantially and, since the 2006 enhancement of the dividend tax credit, dividend taxes in Canada have been fully integrated or overintegrated for taxable investors. Based on a new methodology, I estimate the fiscal cost of the system to federal and provincial governments. The cost of the DTC has increased markedly since the 2006 reform and is large. About 70 per cent of the tax benefit accrues to taxpayers in the top 10 per cent of the income distribution and, for shareholders in this group, the impact on overall progressivity of the tax system is substantial.

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March 15, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

How Federal Tax Law Rewards Segregation

Michelle D. Layser (Georgetown), How Federal Tax Law Rewards Segregation, 93 Ind. L.J. ___ (2018):

Residual, de facto segregation is among the most enduring barriers to equal opportunity in America. Nearly five decades after the Fair Housing Act of 1968, Blacks and Latinos still tend to live in neighborhoods where the majority of residents are people of color. Such racial segregation is often accompanied by economic segregation. Meanwhile, sociologists, housing law scholars, and poverty law experts have stressed the importance of residential location to the impact of poverty and the potential for upward economic mobility. But an unlikely source of federal housing law—the tax code—may interfere with efforts to promote more integrated communities.

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March 15, 2017 in Scholarship, Tax | Permalink | Comments (1)

Tuesday, March 14, 2017

Kamin Presents Getting Americans To Save: In Defense Of (Reformed) Tax Incentives Today At Tulane

KaminDavid Kamin (NYU) presents Getting Americans to Save: In Defense of (Reformed) Tax Incentives, 70 Tax L. Rev. ___ (2017), at Tulane today as part of its Workshop on Regulation and Coordination Series:

According to the most recent literature, one of the primary systems for getting Americans to save more — a system of tax-preferred retirement accounts — is fundamentally broken and should be abandoned. This system of 401(k)s, Individual Retirement Accounts (IRAs), and other tax-preferred accounts cost the government about $80 billion per year, and influential new research by Raj Chetty, John Friedman, and co-authors — among others — suggests that tax incentives like these are unable to substantially increase private saving. However, this case against tax incentives is overstated.

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March 14, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (2)

Gamage & Shanske:  Tax Cannibalization And Fiscal Federalism

David Gamage (Indiana) & Darien Shanske (UC-Davis), Tax Cannibalization and Fiscal Federalism in the United States, 111 Nw. U. L. Rev. 295 (2017):

The current structure of U.S. federal tax law incentivizes state governments to adopt tax policies that inflict costs on the federal government, at the expense of national welfare. We label this the “tax cannibalization problem.”

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

Brooks:  The Definitions Of Income

John R. Brooks (Georgetown), The Definitions of Income, 71 Tax L. Rev. ___ (2017):

What is income? It’s a seemingly simple question that’s surprisingly hard to answer. Income is the basis for assigning tax burdens, for distributing transfers, and for broader normative issues of inequality and justice. Yet we lack a shared conception of income, and a pure, rigorous definition of income is impossible. In this Article I review the intellectual history of the income concept among tax and fiscal theorists to show the difficulty of the problem, and also to show that some important debates about what’s proper under an income tax can be explained instead as arguments over competing income definitions that necessarily incorporate policy choices. These insights are applied to more modern questions, like the role of tax expenditure analysis and optimal income tax theory. I also perform — for the first time in the literature — a close examination and comparison of 12 different income definitions used by the federal government for different purposes. This examination illustrates that there is wide range of income concepts actively in use, but that the measure of income for tax purposes has a prominent and growing role.

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

Public Company Proximity To IRS Office Increases Audit Risk And Tax Avoidance

JournalThomas R. Kubicka (Kansas), G. Brandon Lockhart (Clemson), Lillian F. Mills (Texas & John R. Robinson (Texas A&M), IRS and Corporate Taxpayer Effects of Geographic Proximity, 60 J. Accounting & Econ. ___ (2017):

We investigate whether geographic proximity between corporate headquarters and IRS regional offices affects corporate tax avoidance and the likelihood and productivity of IRS examinations. Using geographic distance to represent information asymmetry, we find that corporations avoid more tax when located closer to the IRS unless they are close to an IRS industry specialist. This finding is consistent with taxpayers believing proximity provides them with an information advantage over the IRS.

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March 14, 2017 in Scholarship, Tax | Permalink | Comments (1)

Monday, March 13, 2017

Shanske Presents Equitable Apportionment And The State Corporate Income Tax Today At UC-Irvine

Shanske (2017)Darien Shanske (UC-Davis) presents em>Equitable Apportionment and the State Corporate Income Tax: Past, Present and Possible Future at UC-Irvine today as part of its Tax Law and Policy Colloquium Series hosted by Omri Marian:

What a tough break for formulary apportionment. We are at a moment when there is apparently a real interest in reforming the federal corporate income tax in a way that, at least in theory, would broaden the base of the tax and encourage exporters. Shifting to the use of formulary apportionment with a single sales factor (SSF) could theoretically achieve these goals and there is at least one well-developed reform proposal to that end on the table. Moreover, over 40 states impose a corporate income tax and they have used formulas for a very long time, and so there is a track record and case law to work with. But this is not — yet — formulary apportionment’s moment.

This is the moment for the Destination-Based Cash Flow Tax (DBCFT), which relies on border tax adjustments (BTAs).

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

Second International Conference On Taxpayer Rights Kicks Off Today In Vienna

Sunday, March 12, 2017

The 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, with a new paper debuting on the list at #5:

  1. [1,526 Downloads]  The Known Unknowns of the Business Tax Reforms Proposed in the House Republican Blueprint, by Michael J. Graetz (Columbia)
  2. [450 Downloads]  How Donald Trump can Keep His Campaign Promises, Grow the Economy, Cut Tax Rates, Repatriate Offshore Earnings, Reduce Income Inequality, Keep Jobs in the United States, and Reduce the Deficit, by David S. Miller (Proskauer, New York)
  3. [407 Downloads]  Accounting for Behavioral Considerations in Business Tax Reform: The Case of Expensing, by Lily L. Batchelder (NYU)
  4. [325 Downloads]  Predicting Stock Market Prices with Physical Laws, by Jack Manhire (Texas A&M)
  5. [234 Downloads]  Important Developments in Federal Income Taxation, by Edward A. Morse (Creighton)

March 12, 2017 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Bainbridge:  The Law And Economics Of Jesus’ Parable Of The Talents

Bainbridge 2Stephen M. Bainbridge (UCLA), The Law and Economics of the Parable of the Talents (slides):

On its surface, Jesus’ Parable of the Talents is a simple story with four key plot elements: (1) A master is leaving on a long trip and entrusts substantial assets to three servants to manage during his absence. (2) Two of the servants invested the assets profitably, earning substantial returns, but a third servant — frightened of his master’s reputation as a hard taskmaster — put the money away for safekeeping and failed even to earn interest on it. (3) The master returns and demands an accounting from the servants. (4) The two servants who invested wisely were rewarded, but the servant who failed to do so is punished.

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March 12, 2017 in Legal Education, Scholarship | Permalink | Comments (0)

Saturday, March 11, 2017

Mehrotra Posts Tax Papers On SSRN

SSRN LogoAjay K. Mehrotra (American Bar Foundation; Northwestern) has posted three tax papers on SSRN:

  • A Bridge Between: Law and the New Intellectual Histories of Capitalism, 64 Buff. L. Rev. 1 (2016):  "The American historical profession has in recent years witnessed a significant revival of two subfields that were once thought to be nearly dead. Both intellectual history and what is often referred to today as the history of capitalism are flourishing. In some cases, the two fields have converged. What role has law and legal history played in this revival and convergence? How have formal and informal laws, legal institutions, and legal actors and processes informed our conceptual understanding of the origins and development of modern American capitalism? This essay explores these historiographical and programmatic questions as part of a symposium directed at “Opportunities for Law’s Intellectual History.” This brief essay explores the role of law and legal history as a bridge between the two revived subfields. It does so in three parts. Part I briefly chronicles the recent revival of the two subfields. Part II explores why law, in its broadest sense, may be particularly well suited to help integrate the convergence between intellectual history and the new histories of capitalism. Why, that is, law has been and may continue to be a bridge between the two subfields. Part III uses the history of American tax law and policy as one example to show how law is vital to our understanding of the new intellectual histories of capitalism. The essay concludes with a modest set of observations on where the new literature on law and the intellectual histories of capitalism may be headed."

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March 11, 2017 in Scholarship, Tax | Permalink | Comments (0)

Friday, March 10, 2017

Weekly SSRN Tax Article Review And Roundup

This week, Ari Glogower (Ohio State) reviews a new article by J. Clifton Fleming, Jr. (BYU), Robert J. Peroni (Texas) and Stephen E. Shay (Harvard), Defending Worldwide Taxation With a Shareholder-Based Definition of Corporate Residence 2016 BYU L. Rev. 1681 (2017).

Glogower (2016)Fleming, Peroni, and Shay’s new work proposes a shareholder-based test for determining corporate residence.  Under this test, a foreign corporation would be treated as a U.S. tax resident for a taxable year if 50% or more of its shares were beneficially owned by U.S. residents at the end of the preceding year.  The corporation will be treated as presumptively satisfying this test if its shares are traded on a U.S. market or are marketed to U.S. investors.  The presumption can be rebutted by either the corporation or the IRS, with evidence that the U.S. beneficial ownership of the shares is in fact below the 50% threshold.  Finally, corporations organized under U.S. law would remain domestic residents, as under current law, regardless of the shareholder composition.

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March 10, 2017 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Thursday, March 9, 2017

Shay Presents 'A Better Way' Business Tax Reform Today At Duke

Shay (2014)Stephen E. Shay (Harvard) presents “A Better Way” Business Tax Reform: From Theory to Practical Complications (with J. Clifton Fleming, Jr. (BYU) & Robert J. Peroni (Texas)) at Duke today as part of its Tax Policy Workshop Series hosted by Lawrence Zelenak:

This article critically reviews the House GOP proposal to replace the income tax on corporate and individual business income with a hybrid consumption tax in the form of a subtraction method VAT. The proposal would constitute a radical change to the U.S. federal, state and local tax system, which would, as discussed below, (a) be highly regressive and worsen inequality; (b) be vulnerable to attack under international trade law by U.S. trading competitors (with unprecedented potential penalties), (c) be less advantageous for small and medium businesses than for large businesses, and (d) open substantial opportunities for avoidance.

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March 9, 2017 in Colloquia, Scholarship, Tax | Permalink | Comments (2)

Lipman Presents (Anti)Poverty Measures Exposed Today At UC-Davis

Lipman (2017)Francine J. Lipman (UNLV) presents (Anti)Poverty Measures Exposed at UC-Davis today as part of its Faculty Intellectual Enrichment Series:

Few economic indicators have the salience and far-reaching financial impact than the poverty rate, yet policymakers, researchers, and advocates struggle to understand its mechanics. This Article will build a bridge from in depth personal portraits of families living in poverty to the resource allocations that failed them by exposing the mechanics underlying the Census Bureau's official (OPM) and supplemental poverty measures (SPM). Too often when we address the problem of poverty the focus is on the plight of the poor, and not on ineffective antipoverty programs. The purpose of poverty measures should be to measure and expose the effectiveness or failure of antipoverty programs.

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

Fleischer:  Subsidizing Charity Liberally

Miranda Perry Fleischer (San Diego), Subsidizing Charity Liberally:

Our Constitution enshrines two bedrock principles of Western liberal democracies: limited government and equal opportunity. This Chapter explores the extent to which the charitable tax subsidies reflect these principles, as expressed in the two theories of distributive justice respectively associated with them, libertarianism and resource egalitarianism. This analysis shows that the subsidies’ current structure is much broader than necessary to reflect libertarian ideals, even under the more permissive classical liberal theories.

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