TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Friday, September 23, 2016

Weekly SSRN Tax Article Review And Roundup

This week, Ari Glogower (Ohio State) reviews a new paper by Edward Kleinbard (USC), Capital Taxation in an Age of Inequality, the first installment of a two-part project proposing a new tax instrument, the Dual Business Enterprise Income Tax (BEIT).  Kleinbard’s current article explores the theory behind the Dual BEIT, while a subsequent follow up article will describe its technical operation.  

Glogower (2016)In brief, the Dual BEIT, which builds on Kleinbard’s prior proposals, operates as a single flat-rate tax on capital income, divided between an investor-level tax on normal returns, and a business-level tax on profits.  The investor-level tax is implemented through a tax on deemed normal returns to investments.  Businesses deduct a cost of capital allowance of the same normal return (regardless of whether the business is financed by debt or equity), resulting in a business-level tax on profits.

The article begins with a series of arguments justifying capital income taxation in general:  First, the classic optimal tax theory result that normal returns to saving should not be taxed has “no practical lessons to teach” in a world with inherited capital and gratuitous transfers.  Second, capital income taxation addresses increasing concerns with wealth and income concentration.  Third, taxing capital income taxes is necessary to raise revenue for public investment and social insurance programs.  Fourth, recent studies, including by the IMF and the OECD, suggest that reducing inequality may increase economic growth.

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September 23, 2016 in Legal Education, Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 16, 2016

Weekly SSRN Tax Article Review And Roundup

This week, Daniel Hemel (Chicago) discusses two articles recently posted to SSRN—one by Yair Listokin (Yale), the other by Thomas Brennan (Harvard) and Alvin Warren (Harvard)—which offer illuminating (and divergent) perspectives on the role of realization and deferral in a low interest rate environment.

HemelListokin’s contribution, How To Think About Income Tax When Interest Rates Are Zero, 151 Tax Notes 959 (May 16, 2016), begins with the observation that “[t]he significance of many of income tax law’s core concepts depends on the interest rate.” One example is the realization requirement: Listokin writes that “[w]ith interest rates at zero, the government is indifferent as to whether a taxpayer realizes income now or in the future—as long as the taxpayer’s tax rate is constant across years.” As a result, Listokin says, the tax curriculum and tax law scholarship should focus less on doctrines like the realization requirement that affect the timing of tax payments, and more on doctrines like stepped-up basis that affect the rate at which (and amount on which) tax is paid.

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September 16, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 9, 2016

Weekly SSRN Tax Article Review And Roundup

This week, David Gamage (UC-Berkeley) reviews a new paper by Dave Owen (UC-Hastings), Water and Taxes, 50 UC Davis L. Rev. ___ (2016):

Gamage (2016)The article begins by reviewing the basics of both water law and tax law, to explain that there are currently only modest interactions.  Water rights are indeed taxed, especially by state and local property tax regimes.  Yet the article explains that the ways in which water rights are currently taxed do not serve to meaningfully address concerns about inadequate water conservation.  The article thus proposes more robustly taxing water rights as a means for achieving better water conservation.

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September 9, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 2, 2016

Weekly SSRN Tax Article Review And Roundup

This week, Ari Glogower (Ohio State) reviews a new paper by Daniel Hemel (Chicago) and Kyle Rozema (Northwestern), Inequality and the Mortgage Interest Deduction, forthcoming in the Tax Law Review:

Glogower (2016)Hemel and Rozema ask a question that we thought was well settled: What are the distributional consequences of repealing the mortgage interest deduction (“MID”)? Their conclusion (spoiler alert): It depends.

The article is important in two respects. First, it introduces a more sophisticated analysis of the distributional consequences from repealing (or limiting) the MID and other tax preferences. Through this exercise, the article also adds empirical perspective to the choices for measuring progressivity in tax reforms.

Building on David Kamin’s work on progressivity in tax reforms, the article begins with a result we’ll call the “Tax Burden Paradox”: Repealing a tax preference that provides a larger benefit to high-income taxpayers in dollar terms may in fact decrease those taxpayers’ share of society’s total tax burden.  Consider the article’s example of a two-household society, one rich with pretax income of $100, and one poor with pretax income of $50, and progressive rates that tax the first $50 of income at 20%, and additional income at 40%.  The rich and poor households pay $12 and $9, respectively, in mortgage interest. With the MID, the rich household pays $25.20 in taxes, or 75.4% of the society’s total $33.40 tax burden. If the MID is repealed, the rich household pays $30 in taxes, for a reduced 75% share of the society’s total $40 tax burden.

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September 2, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, August 26, 2016

Weekly SSRN Tax Roundup 2.0

SSRN LogoNote from Paul Caron:  As I explained on August 1, due to my growing other commitments, I have taken steps to reduce the amount of time I devote to TaxProf Blog. Six weeks ago, I stopped doing the weekly tax, legal education, SSRN, and student tax note roundups. I previously announced that Scott Fruehwald of our sister Legal Skills Prof Blog has agreed to take over the weekly legal education roundup. Today, I am pleased to announce that David Gamage (UC-Berkeley), Ari Glogower (Ohio State), and Daniel Hemel (Chicago) have agreed to share responsibility for the weekly SSRN tax roundup:

In addition to a list of newly posted papers, we’ll also include a write-up about at least one of the week’s additions. A quick administrative note: The best way to make sure we see your paper is to use the JEL code K34 (Tax Law) when you upload to SSRN. (If your reaction is “what’s a JEL code?”, check out  Lea-Rachel Kosnik’s overview. And for a fascinating read on the tangled history of JEL codes, see Beatrice Cherrier’s article.)

If you would like to take over the weekly tax roundup as a service to the tax community, either alone or as part of a group of co-editors, please let me know.

This week, Daniel Hemel highlights a new paper by David Hasen (Colorado), Accretion-Based Progressive Wealth Taxation, which is forthcoming in the Florida Tax Review:

HemelDavid Hasen's excellent article emphasizes the distinction between an “excise tax,” which “applies to or is triggered by a transfer or other event,” and an “accretion tax,” which “appl[ies] to the ‘same’ item over time.” Examples of “excise taxes” include consumption taxes, realization-based income taxes, and estate and gift taxes. Examples of “accretion taxes” include real property taxes, mark-to-market income taxes, and periodic wealth taxes. Hasen argues that “a federal accretion-type, progressive wealth tax would appropriately supplement either an income tax or a consumption tax and would do so more effectively than our existing excise wealth tax regime, the federal estate and gift tax.” In the following post, I'll walk through (parts of) Hasen's argument and then explain why I'm not entirely persuaded that an accretion-type wealth tax is the way to go.

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August 26, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, July 15, 2016

Weekly SSRN Tax Roundup

Friday, July 8, 2016

Weekly SSRN Tax Roundup

Friday, July 1, 2016

Weekly SSRN Tax Roundup

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July 1, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, June 24, 2016

Weekly SSRN Tax Roundup

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June 24, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, June 17, 2016

Weekly SSRN Tax Roundup

Friday, June 10, 2016

Weekly SSRN Tax Roundup

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June 10, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, June 3, 2016

Weekly SSRN Tax Roundup

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June 3, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, May 27, 2016

Weekly SSRN Tax Roundup

Friday, May 13, 2016

Weekly SSRN Tax Roundup

Friday, May 6, 2016

Weekly SSRN Tax Roundup

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May 6, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, April 29, 2016

Weekly SSRN Tax Roundup

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April 29, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, April 22, 2016

Weekly SSRN Tax Roundup

Friday, April 15, 2016

Weekly SSRN Tax Roundup

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April 15, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, April 8, 2016

Weekly SSRN Tax Roundup

Friday, March 25, 2016

Weekly SSRN Tax Roundup

Friday, March 18, 2016

Weekly SSRN Tax Roundup

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March 18, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, March 11, 2016

Weekly SSRN Tax Roundup

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March 11, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, March 4, 2016

Weekly SSRN Tax Roundup

Friday, February 26, 2016

Weekly SSRN Tax Roundup

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February 26, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, February 19, 2016

Weekly SSRN Tax Roundup

Friday, February 12, 2016

Weekly SSRN Tax Roundup

Friday, February 5, 2016

Weekly SSRN Tax Roundup

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February 5, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, January 29, 2016

Weekly SSRN Tax Roundup

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January 29, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, January 22, 2016

Weekly SSRN Tax Roundup

Friday, January 15, 2016

Weekly SSRN Tax Roundup

Friday, January 8, 2016

Weekly SSRN Tax Roundup

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January 8, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Saturday, December 26, 2015

Weekly SSRN Tax Roundup

Friday, December 18, 2015

Weekly SSRN Tax Roundup

Friday, December 11, 2015

Weekly SSRN Tax Roundup

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December 11, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, December 4, 2015

Weekly SSRN Tax Roundup

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December 4, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Weekly Student Tax Note Roundup

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December 4, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, November 13, 2015

Weekly SSRN Tax Roundup

Friday, November 6, 2015

Weekly SSRN Tax Roundup

Friday, October 30, 2015

Weekly SSRN Tax Roundup

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October 30, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, October 23, 2015

Weekly SSRN Tax Roundup

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October 23, 2015 in Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, October 16, 2015

Weekly SSRN Tax Roundup

Friday, October 9, 2015

Weekly SSRN Tax Roundup

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October 9, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, October 2, 2015

Weekly SSRN Tax Roundup

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October 2, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 25, 2015

Weekly SSRN Tax Roundup

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September 25, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 18, 2015

Weekly SSRN Tax Roundup

Friday, September 11, 2015

Weekly SSRN Tax Roundup

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September 11, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, September 4, 2015

Weekly SSRN Tax Roundup

Friday, August 28, 2015

Weekly SSRN Tax Roundup

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August 28, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Friday, August 21, 2015

Weekly SSRN Tax Roundup

Friday, August 14, 2015

Weekly SSRN Tax Roundup