Weekly SSRN Tax Article Review And Roundup: Elkins Reviews Speck's The Realization Rule As A Legal Standard

This week, David Elkins (Netanya, Google Scholar) reviews Sloan G. Speck (Colorado; Google Scholar), The Realization Rule as a Legal Standard, 16 Colum. J. Tax L. ___ (2024):

Moore v. United States, decided by the Supreme Court in June of this year, reignited discussion about the concept of realization in the income tax. While statutory law generally conforms to the principle of realization as a matter of policy, the question raised by Moore is whether Congress could tax unrealized gain if it so desired.

In this week’s feature article, Prof. Speck begins with an extensive review of the controversy regarding the Constitutional realization requirement. He opens with the Supreme Court’s famous holding from 1920 in Eisner v. Macomber that the 16th Amendment does not authorize Congress to impose tax on unrealized income (without an impractical apportioning among the states in accordance with population). He then describes how in a 1941 article, Prof. Stanley Surrey contended that realization is not in fact a Constitutional requirement. 

Continue reading

Weekly Legal Education Roundup

• ABA Journal, Which Law Firms Scored Highest in Summer Associate Surveys? And Which Had Memorable Events?
• Paul Caron (Dean, Pepperdine), October 7, 2023 And 2024
• Bryan Garner (SMU) & Joseph Kimble (Distinguished Professor Emeritus, Cooley), Essentials for Drafting Clear Legal Rules (2024)
• George Mason University News, Statement Regarding Scalia Law School Finances
• Illinois Supreme Court Commission on Professionalism, Bullying in the Legal Profession: A Study of Illinois Lawyers’ Experiences and Recommendations for Change
• Brian Leiter (Chicago), Opposition to ABA's Proposal to Revamp its "Diversity and Inclusion" Standards in the Wake of SCOTUS Decision in SFFA
• MacArthur Foundation, Dorothy Roberts

Continue reading

Tax Policy In The Biden Administration

• American University, Evaluating the Harris and Trump Corporate Tax Proposals
• Bloomberg, Data Stands in Way of Using Generative AI on Global Minimum Tax
• Bloomberg, Trump Vows to Eliminate Income Taxes on Americans Living Abroad
• Bloomberg, UN Global Tax Talks Duplicating Work at OECD, EU Says
• Brookings, The Implications of Pledging to Exempt Certain Households From Tax Hikes

Continue reading

Zhang Presents Fiscal Citizenship And Taxpayer Privacy Today At Cumberland

Alex Zhang (Emory; Google Scholar) presents Fiscal Citizenship And Taxpayer Privacy, 125 Colum. L. Rev. __ (2025) at Cumberland today as part of its Tax Policy Speake Series hosted by Tracey Roberts:

Inequality has reached record levels, and the public shares a common belief that the ultra-rich—while accumulating enormous capital—have not borne their fair share of tax burdens. In response, commentators have called for transparency in the tax records of the wealthy and the powerful. The most dramatic illustration was the fight over former President Trump’s tax returns. It ended with the House Ways and Means Committee obtaining those returns—under the quiet blessing of the U.S. Supreme Court—and releasing them to the public. Even more consequential was the leak of ultra-wealthy taxpayers’ records to ProPublica in 2021. Those records revealed that the richest Americans exploited loopholes and tax doctrine to reduce, often to zero, their income-tax liabilities. The leak prompted lawsuits and congressional investigations over what some see as a major breach of the statutory guarantee of tax privacy. But secrecy has not always been the rule. At three critical junctures—the Civil War, the 1920s, and the 1930s—Congress made certain tax records available for public inspection, and newspapers published the incomes of the billionaires of the time. Today, Finland, Norway, and Sweden all allow a significant degree of disclosure of individual tax data.

This Article intervenes in the tax-confidentiality debate by building a novel analytical framework of fiscal citizenship.

Continue reading

18% Surge In LSAT Registrants Augurs Well For Robust Fall 2025 Law School Admissions Season

Reuters, High LSAT Demand Points to Competitive Law School Admission Cycle, More Interest in Legal Issues:

The current law school admission cycle kicked off with an 18% surge in people registering to take the LSAT entrance exam — a jump that likely favors schools competing for top talent and suggests increased interest from young people in careers focused on U.S. legal affairs.

Each LSAT administration in the latest cycle — which includes August, September, October and November—has posted increases in either test takers or those registered to take the test, compared with 2023, according to the Law School Admission Council, which develops the LSAT.

August examinees were up 35% while September was up 7%. Registrants for the just-concluded October exam increased 12% over 2023, while 29% more people have signed up to take the LSAT in November. Taken together, that amounts to nearly 22,000 more LSAT registrants than last year at this time. ...

Continue reading

Next Week’s Tax Workshop

Friday, October 18: Alex Zhang (Emory; Google Scholar) will present Fiscal Autonomy in Subnational Taxation as part of the Boston College Tax Policy Collaborative. If you would like to attend, please contact Diane Ring. 

For individual tax workshop posts, see here.

Editor's Note:  If you would like to receive a daily email with links to tax posts on TaxProf Blog, email me here.

Speck: The Realization Rule As A Legal Standard

Sloan G. Speck (Colorado; Google Scholar), The Realization Rule as a Legal Standard, 16 Colum. J. Tax. L. __ (2024):

The realization “rule” in tax law is better characterized as a legal standard. This characterization matters after the Supreme Court’s decision in Moore v. United States, which sets the stage for future courts to decide that the Constitution mandates realization—an identifiable event before accrued income is reportable by taxpayers. The stakes of a constitutional realization requirement are underappreciated. Because current statutory law embeds realization as a background principle, a constitutional realization requirement would operate as a taxpayer-initiated antiabuse doctrine—a sword that taxpayers could use selectively to invalidate parts of the Internal Revenue Code and Treasury Regulations. This novel legal tool has adverse implications for the U.S. tax system’s structure and complexity.

Continue reading

Leading Law Firms In The "New Normal": Recovering From Crises Through Leadership Development

Donald J. Polden (Santa Clara), Leading Law Firms in the "New Normal": Recovering from Crises through Leadership Development, 63 Santa Clara L. Rev. 223 (2023):

Beginning in 2008, the first of three major crises hit the nation and had global implications and effects, including significant ones for the legal profession. Those crises were the financial crisis of 2008, followed by the social justice movements reflecting outrage at several highly-publicized police killings of Black men and women, and, most recently, the 2020-2022 COVID-19 pandemic. The crises created significant challenges for lawyers and legal institutions but they also created opportunities for enhanced access to justice, more efficient law organization practices, and new workplace requirements. 

Continue reading

Lokken: Dividend Equivalents

Lawrence Lokken (Florida), Dividend Equivalents: 

Foreign investors are generally subject to a 30 percent tax on dividends received from U.S. companies. Through various derivative instruments and transactions, an investor can achieve the financial equivalent of an investment in a U.S. stock, without actually owning the stock. The U.S. Congress decided in 2010 that an investor receiving a "dividend equivalent" through such a derivative investment should be taxed on this receipt as though it actually were a dividend. Implementation of this decision has proven to be difficult. 

Continue reading

George Mason University Issues Statement On Scalia Law School Finances: ‘Most Law Schools Would Run Deficits If They Relied Only On JD Revenue’

Following up on my previous post, George Mason Law School: $13m Budget Deficit In FY25 ($38m Over 6 Years); Dean Charged With Balancing Budget And Maintaining #28 U.S. News Ranking:  George Mason University News, Statement Regarding Scalia Law School Finances:

Recent media reports about the Scalia Law School budget deficit do not take into account the full measure of what is required to operate a highly competitive, top-ranked law school under current conditions.

The tuition-discounting practice is common among top-ranked schools that compete for highly credentialed students. Most law schools, including the Scalia Law School, make up the difference with revenue from other programs (including LLM programs), private donations, and university support. More recently, George Mason University has been exploring additional financial support for the law school.

Public law schools discount JD tuition in order to provide greater access to legal education, especially to first-generation attorneys. For the past several years, the law school has offered generous financial aid to support increasingly selective, and smaller, cohorts of JD students.

The Scalia Law School budget is a reflection of the fact that, like for most public law schools, operating expenses cannot be covered with JD revenue alone. Most law schools would show similar deficits if they were to use only JD revenue.

Continue reading

State Conformity To GILTI Is A Good Idea (A Defense of Minnesota)

Peter D. Enrich (Northeastern), Michael Mazerov (Center on Budget and Policy Priorities), Darien Shanske (UC-Davis; Google Scholar) & Dan Bucks (Public Revenues Consulting), State Conformity to GILTI is a Good Idea (A Defense of Minnesota), 110 Tax Notes St. 287 (Oct. 23, 2023):

SALT in the Public Interest presents government and academic perspectives on state and local tax issues in a roundtable discussion format featuring former Multistate Tax Commission Executive Director Dan R. Bucks; Peter D. Enrich, professor emeritus at the Northeastern University School of Law; Michael Mazerov, senior fellow at the Center on Budget and Policy Priorities; and professor Darien Shanske of the University of California, Davis, School of Law (King Hall). Tax Notes State senior editor Doug Sheppard moderates the discussion.

Continue reading

Dorothy Roberts (Penn) Receives MacArthur Genius Grant

MacArthur Foundation, Dorothy Roberts (Penn; Google Scholar):

Dorothy Roberts is a legal scholar and public policy researcher exposing racial inequities embedded within health and social service systems. Roberts’s work encompasses reproductive health, bioethics, and child welfare. She sheds light on systemic inequities, amplifies the voices of those directly affected, and boldly calls for wholesale transformation of existing systems.

Roberts’s early work focused on Black women’s reproductive rights and their fight for reproductive justice. In Killing the Black Body: Race, Reproduction, and the Meaning of Liberty (1997), she analyzes historical and contemporary policies and practices that denied agency to Black women and sought to control their childbearing—from forced procreation during slavery, to coercive sterilization and welfare reform—and advocates for an expanded understanding of reproductive freedom. This work prompted Roberts to examine the treatment of children of color in the U.S. child welfare system. After nearly two decades of research and advocacy work alongside parents, social workers, family defense lawyers, and organizations, Roberts has concluded that the current child welfare system is in fact a system of family policing with alarmingly unequal practices and outcomes.

Continue reading

Stewart Reviews Teo’s The United Nations In Global Tax Coordination

Miranda Stewart (Melbourne), The Voice of All Nations in Global Tax Coordination (JOTWELL) (reviewing Nikki J. Teo (Sydney), The United Nations in Global Tax Coordination (Cambridge University Press 2023)):

Sometimes a book arrives at just the right moment in history. That is the case for The United Nations in Global Tax Coordination by Dr. Nikki J. Teo, which tells the story of the United Nations (UN) Fiscal Commission, a short-lived attempt in the mid-20th century to create an international tax process that would reflect and support the interests of developing countries. The product of years of doctoral research, the book was published just before the UN General Assembly adopted Resolution 78/230 (22 December 2023) to establish a new UN process for international tax cooperation. It has deservedly won the 2024 IBFD Frans Vanistandael Award for a publication in international taxation.

The United Nations in Global Tax Coordination is a work of substance about tax cooperation at the UN and before it, the work of the Fiscal Committee of the League of Nations. Teo explores the growth and decline of the UN Fiscal Commission at a time that saw a growing divide between “developed” and “developing” countries. She draws on archives of the UN, the League, and British and US governments to tell an intriguing story of shifting geopolitical, economic, and business alliances during the second world war, and Cold War gameplaying. ...

Continue reading

More Commentary On The ABA's Proposed Changes To Law School Diversity Accreditation Standard

Following up on last week's post, Critics Say Cutting 'Race And Ethnicity' From ABA Law School Diversity Accreditation Standard Goes Too Far:  Brian Leiter (Chicago), Opposition to ABA's Proposal to Revamp its "Diversity and Inclusion" Standards in the Wake of SCOTUS Decision in SFFA:

A letter from 44 Deans can be seen here.  They argue that, "Nothing in the Court's ruling [in SFFA] precludes schools from continuing to pursue diversity as an objective. Rather, the Court limited the means that may be used. The Court did not prohibit schools -- or the American Bar Association -- from pursuing the goal of a diverse student body and a diverse faculty."  This is a plausible, but it seems to me optimistic, reading of the import of the SFFA decision.  Given the current composition of SCOTUS, I will be surprised if, when asked to clarify this import, this reading will be vindicated.

ABA Journal, Changes to ABA Accreditation Standard Addressing Race and Diversity Meet Pushback:

Contentious proposed changes to the ABA’s diversity and inclusion standard go too far and could reverse progress made toward making law schools diverse, according to several legal education groups that wrote to the council of the ABA Section of Legal Education and Admissions to the Bar.

In public comments that closed Sept. 30 on the council’s proposed changes of Standard 206, a group of 44 law school deans; the ABA Diversity, Equity, and Inclusion Center; the Law School Admission Council; the NAACP Legal Defense and Educational Fund and the Society of American Law Teachers protested the changes prompted by last year’s U.S. Supreme Court decision that ruled against affirmative action policies.

Continue reading

Sweeping Changes And An Uncertain Legacy: The Tax Cuts And Jobs Act Of 2017

William G. Gale (Brookings Institution; Google Scholar), Jeffrey L. Hoopes (North Carolina; Google Scholar) & Kyle Pomerleau (American Enterprise Institute), Sweeping Changes and an Uncertain Legacy: The Tax Cuts and Jobs Act of 2017, 38 J. Econ. Persps. 3 (2024):

The Tax Cuts and Jobs Act (TCJA) of 2017 introduced sweeping changes to individual and corporate taxation. We summarize the major provisions, trace the origins of the Act, and compare it to previous tax changes. We also examine the effects on the government budget, economic activity, and distribution of resources. Based on evidence through 2019, we find that the TCJA clearly raised federal debt and increased after-tax incomes, disproportionately increasing incomes for the most affluent. Its effects on GDP and median wages seem modest at best, although clear counterfactuals are difficult to identify. 

Continue reading

ABA Strikes ‘Minority’ And ‘Of Color’ From Clerkship Criteria Amid Lawsuit Threat

Reuters, ABA Strikes 'Minority' and 'Of Color' From Clerkship Criteria Amid Lawsuit Threat:

The American Bar Association has revised the criteria for its Judicial Clerkship Program opens new tab to eliminate references to minority students and “communities of color” after a conservative legal group alleged that the ABA was illegally discriminating by using racial quotas.

The program, founded 24 years ago to help boost the number of minority judicial clerks, previously required participating law schools to send between four and six students “from underrepresented communities of color,” while judges were asked to try to hire at least two “minority judicial law clerks” over five years. Now, law schools are “encouraged to select a diverse group of students,” and judges have no hiring parameters. 

The Wisconsin Institute for Law & Liberty filed a complaint against the ABA with the U.S. Department of Education in May and threatened further legal action, though it never filed a lawsuit. Skylar Croy, an attorney with the institute, said on Tuesday it’s not clear when the ABA modified the criteria for the Judicial Clerkship Program. ...

Continue reading

Cravath's Len Teti On ‘The Human Side Of Tax Law’

Law.com, Cravath's Len Teti on the Human Side of Tax Law:

Cravath Swaine & Moore partner Len Teti hosts the firm's "On Tax" podcast, which is now in its eighth season. The podcast seeks to share what the firm says is "the human side of tax law" and spotlights successful lawyers, professors and executives, many of whom have a tax background. The podcast goes over the career paths, experiences and perspectives of high-profile tax and business professionals in ways you wouldn't think a tax podcast would.

Over the eight seasons, Len has interviewed Cravath partners, law school professors and business leaders from IBM, Amazon, Goldman Sachs, JPMorgan, Citigroup, and Peloton, among others.

Continue reading

1 In 4 Lawyers Are Bullied In The Workplace

Bullying in the Legal Profession: A Study of Illinois Lawyers’ Experiences and Recommendations for Change (Illinois Supreme Court Commission on Professionalism 2024) (press release):

The Illinois Supreme Court Commission on Professionalism initiated what is believed to be the first study on the prevalence and experiences of bullying in Illinois’ legal profession with the goal of identifying best practices for preventing it.

Although bullying impacts lawyers from all backgrounds, bullying disproportionately impacts female attorneys, attorneys with disabilities, attorneys of color, younger attorneys, and LGBTQ+ attorneys.

Continue reading

Ring Presents The Conflictual Core Of Global Tax Corporation Today At UC-Irvine

Diane M. Ring (Boston College; Google Scholar) presents The Conflictual Core of Global Tax Corporation (with Shu-Yi Oei (Duke; Google Scholar)) (reviewed by Blaine Saito (Ohio State; Google Scholar) here) at UC-Irvine today as part of its Current Issues in Tax Law & Policy Colloquium Speaker Series hosted by Natascha Fastabend:

It is widely argued that the world is in a new and distinctive era of global tax cooperation, as evidenced by the launch of a sweeping multilateral tax reform project spearheaded by the OECD and G20 to confront tax base erosion and profit shifting ("BEPS"). This Article argues, however, that this cooperation-centric account is overstated and masks fundamental conflicts between developing and developed countries' interests, conflicts that have recently culminated in a vote to shift the location of the reform work to the United Nations. This Article also argues that these conflicts constitute more than a random mélange of objections from losing parties in negotiations but instead reflect a coherent and unified set of developing country-centered concerns that extend far beyond tax policymaking. This Article's highlights the conflictual elements inherent in the OECD/G20 BEPS project and presents an interpretative framework through which developing country-centered criticisms and their likely implications can be analyzed and understood. 

Continue reading

October 7, 2023 And 2024

Last year, I wrote:

I am the dean of a law school with four Jewish full-time faculty and perhaps the largest cohort of Jewish students among Los Angeles area law schools. One of those professors was in Israel for the High Holidays with his family on October 7 and taught his 1L contracts class remotely from Israel on October 9 in between visits to bomb shelters. On October 11, I attended a moving and overflowing community gathering hosted by our Jewish Law Students' Association and Associate Dean for Student Life and Spiritual Development. On October 18, for the first time in our six years hosting the weekly dinner and Bible study, my wife Courtney and I spoke to the gathered students, staff, and faculty. On October 23, another of our Jewish professors will open our monthly faculty meeting in prayer.

Now, two weeks after October 7, I feel compelled to share my thoughts, not in my capacity as dean, but as a human being and a Christian horrified by the savagery unleashed by Hamas on that day. My three dear friends on Pepperdine Caruso Law's senior leadership team also welcomed the opportunity to share their personal views as well.

Yesterday, October 7, 2024, my Courtney and I hopped on a bus in the law school parking lot with a group of students and faculty to visit the Nova Exhibition, which powerfully shows what happened at the Nova Music Festival in Israel on October 7, 2023:

At our law school dinner two weeks ago, Michael Avi Helfand, our Brenden Mann Foundation Chair in Law and Religion, shared what it has been like for Jewish students and professors at our Christian law school over the past year:

Deshpande Presents The Social Safety Net On Human Capital Investment Today At NYU

Manasi Deshpande (Chicago) presents The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment (with Rebecca Dizon-Ross (Chicago; Google Scholar)) at NYU today as part of its Tax Policy and Public Finance Colloquium hosted by Daniel Shaviro:

Most parents whose children receive Supplemental Security Income (SSI) benefits overestimate the likelihood that their child will receive SSI benefits in adulthood; further, reducing parents’ expectations that children will receive benefits in adulthood does not increase investments in children’s human capital.

Research has shown that social safety net programs improve children’s short- and long-term outcomes by providing financial resources to families in need. However, what if parents anticipate that their children will retain government benefits into adulthood? Will those parents decrease their investment in their children’s education and other development opportunities?

A simple economic model suggests some answers to these questions, revealing that the anticipation of benefits in adulthood decreases human capital investment on two counts: (a) income effects—parents invest less in human capital because they do not expect their child to “need” money from working in the future; and (b) substitution effects—parents invest less in human capital because, due to the phase-out rules for transfer programs, a child’s adult benefits will be reduced if they work as an adult.

Continue reading

NBC News: Notre Dame Law School’s Growing Influence On The Supreme Court

NBC News, Notre Dame Law School’s Growing Influence on the Supreme Court:

Tucked within a Gothic-style building on campus in this small town is a Catholic institution increasingly exerting conservative influence on the Supreme Court: the University of Notre Dame Law School.

The school counts among its former faculty Justice Amy Coney Barrett, who swapped the faux-medieval halls of one institution for the neoclassical marble columns of another in helping form the 6-3 conservative majority on the court.

In a trend that started before Barrett’s appointment but has accelerated since, the school is now having success placing both students and professors in prestigious Supreme Court clerkships. ...

Continue reading

McCaffery & Jones: The Curiouser And Curiouser Case Of Carried Interests

Edward J. McCaffery (USC; Google Scholar) & Darryll K. Jones (Florida A&M), The Curiouser and Curiouser Case of Carried Interests, 66 Ariz. L. Rev. 357 (2024): 

In late July 2022, as the Inflation Reduction Act was being finalized, a provision limiting the carried interest preference, which allows billionaire hedge fund managers to qualify for the long-term capital gains rate on their highly lucrative “carry,” was scrapped. This continued a string of defeats for sensible policy reform dating back at least as far as Victor Fleischer’s congressional testimony in 2007 and his seminal Two and Twenty law review article. The usual special interest view of politics took the blame for the inertia.

Continue reading

NYU Dean: Medical School Accreditation Is Outdated (What About Law School Accreditation?)

Wall Street Journal Op-Ed:  Med-School Accreditation Is Outdated, by Robert I. Grossman (CEO, NYU Langone Health; Dean, NYU Grossman School of Medicine; Steven B. Abramson (Executive Vice President, NYU Langone Health; Vice-Dean, NYU Grossman School of Medicine):

Medical education in the U.S. has evolved over the past century, but the way we evaluate and accredit medical schools has failed to keep pace.

Before World War II, medical schools operated by their own standards, with no unified framework to ensure consistent, efficient and high-quality education. In 1942 the American Medical Association and the Association of American Medical Colleges, which had separately accredited medical schools, met to address this problem and formed the Liaison Committee on Medical Education. Since 1965 the U.S. government has recognized the LCME as the accreditation agency for medical schools, giving the group significant power to shape how we teach physicians.

When it was established, the LCME based many of its standards on the landmark Flexner Report, an assessment of medical education written in 1910. Today, the LCME’s system for evaluating medical schools and academic medical centers is outdated, expensive and misguided.

Continue reading

Joondeph: State Taxes And 'Pike Balancing'

Bradley W. Joondeph (Santa Clara; Google Scholar), State Taxes and 'Pike Balancing,' 99 Ind. L.J. 893 (2024):

For many decades, the Supreme Court has applied different doctrinal frameworks in evaluating whether state laws violate the dormant Commerce Clause depending on whether the law at issue was a regulation or a tax. For state regulations, the Court’s test has included asking whether the regulation imposes costs on interstate commerce that are “clearly excessive” relative to its local benefits. But the Court has never applied this so-called “Pike balancing test” to state taxes. In its most recent state tax decision, however—South Dakota v. Wayfair, Inc.—the Court indicated Pike offers a basis for challenging state tax schemes under the Commerce Clause. Wayfair has thus created a puzzle: How should undue burden analysis apply to state taxes?

Continue reading

Legal Ed News Roundup

• ABA Journal, California Plan To Move Bar Exam To Kaplan Sent Back To State Supreme Court
• Nicholas Allard (Jacksonville), Setting Jacksonville University College of Law Apart From Its Peers
• Baylor Lariat, Baylor Law School Launches Family Law Clinic
• CBC News, Make a Deal Today or We Cancel Semester for Law Students, McGill Tells Law Professors' Union
• CBS News, University Of Pennsylvania Law School Suspends Professor Over Comments On Race
• Cornell Chronicle, Cornell Law School Announces Partnership with Service to School VetLink Program
• Daily Report, Georgia July Bar Exam Results: Highest Overall Passing Rate in 10 Years
• Daily Report, 'Market-Responsive Curriculum' Called a Priority for Next Georgia State Law Dean

Continue reading

WaPo: Meet The Black-Belt, Tattooed IRS Official Who Saved 23 Children From Their Abusers

Washington Post, Meet the Black-Belt, Tattooed IRS Official Who Saved 23 Children From Their Abusers:

At an early-morning Brazilian jujitsu class in Hamburg, N.Y., sweat flies as men pair off and pounce on each other, grappling and grunting on the mats. The fighters are so entangled that it’s hard to tell which hand or foot belongs to which body. Jarod Koopman, the black-belt instructor, pins a student named Mike to the floor and with a shift of his hip renders him immobile. Mike weighs 280 pounds; Jarod, 180. Brazilian jujitsu was created to do this: enable a smaller person to bring down a much bigger one.

Koopman teaches this class about three times a week, then changes out of his heavy cotton gi into the business shirt and pressed slacks of a professional accountant. When he sits down at his computer, what he will do at work is much the same as what he does at the dojo. This work has, among other things, led to the rescue of 23 children from rape and assault, the seizure of a quarter-million child abuse videos and the arrest of 370 alleged pedophiles. It has resulted in the largest-ever seizure of cryptocurrency headed to Hamas, al-Qaeda and the Islamic State. When Changpeng Zhao, chief of the world’s biggest cryptocurrency exchange, Binance, reported to prison in June, it was because Koopman’s small cybercrime team had uncovered evidence of the firm’s money laundering for terrorists and sanctions-busting for Iran, Syria and Russia. In the past 10 years, this work has returned more than $12 billion to victims of crime and to the U.S. Treasury.

Continue reading

NY Times Op-Ed: Amy Wax Is Outrageous, Demeaning, Dangerous. She Shouldn’t Be Punished.

New York Times Op-Ed:  She Is Outrageous, Demeaning, Dangerous. She Shouldn’t Be Punished., by  John McWhorter (Columbia; Google Scholar):

For years now, Amy Wax, a University of Pennsylvania law professor, has attracted attention for her statements about race and gender. ...

For me, watching Wax go farther and farther down this path has become almost a spectator sport, though a glum one.

In response to complaints from students and faculty members, in 2018 the University of Pennsylvania said she would no longer teach required first-year classes. Last week it increased the penalty, suspending her for a year, removing her from her endowed position and ending her summer pay permanently.

Wax’s contributions to public discourse have been stunningly numb to compassion, courtesy and sometimes even to coherence, often recalling those of a certain former president. But though her statements (some of which she has attempted to distance herself from) are egregious and then some, so is her punishment. ...

Continue reading

Lesson From The Tax Court: To Get Deductions For Criminal Activity, Make It Your Business

I was going to blog today on a great case involving application of the Cohan rule to help a taxpayer establish their basis in property when they had lost their records.  Pak v. Commissioner, T.C. Memo. 2024-86.  I decided not to because Les Book did such a nice job blogging about it here on Procedurally Taxing that I did not feel I would add much value.  However, one result of reducing these Lessons to once-a-month is that I easily found another case to teach a good Lesson.

Today’s lesson is about deductions for criminal activities.  It’s also a lesson about what I call the rule of ‘62’s.  Section 162 allows a deduction for “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.”  In contrast, §262 expressly disallows the deduction of “personal, living, or family expenses.”

The key idea behind these two statutes is to distinguish personal from business expenses.  Congress seeks to tax only net income of money made in a trade or business.  Since it takes money to make money, §162 generally permits taxpayers to deduct the money it takes from the money they make.  In contrast, expenses that are not connected to a trade or business activity (or other profit-seeking activity under §212) are not deductible; Congress seeks in such cases to tax the gross receipts of the taxpayer.

But what if the taxpayer’s trade or business is illegal?  Is their income still gross income?  Are their expenses still deductible?  There is a long and rich history regarding these questions, much of it arising from the activities of Chicago mobsters in the 1920’s, who were not always punctilious about their taxes.  The bottom line is that yes, illegal income is gross income and, yes, expenses to produce that income are likewise deductible under §162(a).  In contrast, expenses that are themselves illegal are not deductible, again regardless of the legality of the taxpayer’s trade or business.  §162(c).

Thus income earned by criminals is treated similarly to income earned by law-abiding taxpayers.  That means criminals still have to deal with the rule of ‘62’s.  That is, they must connect their expenses with some activity that amounts to a trade or business.  §162. The expenses cannot be just personal.  §262.  That is the lesson we learn in Jonathan Chang and Wei-Lin Chang v. Commissioner, T.C. Summ. Op. 2024-18 (Sept. 16, 2024) (Judge Panuthos), where the taxpayer sought to deduct the legal expenses he incurred in a criminal trial for wire fraud and money laundering.  The IRS said his criminal activity was not connected to any business, but was merely personal enrichment.  The Tax Court disagreed and allowed a deduction of over $360,000.

\Details below the fold.

Continue reading

Summer Associate Satisfaction Surveys

ABA Journal, Which Law Firms Scored Highest in Summer Associate Surveys? And Which Had Memorable Events?:

The law firm with a No. 1 ranking by summer associates is either Dentons or Paul Hastings, according to surveys by Law.com and Law360 Pulse.

There was just one overlap in the top 10 rankings: Morgan, Lewis & Bockius was ranked third in both surveys. In fairness, however, the two rankings measured different criteria.

Law.com, Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters':

In a recent American Lawyer survey of 3,077 summer associates at 71 law firms, ... summers indicated that they were less concerned about getting job offers and less worried about job security altogether. Indeed, more summers said they planned to be at the same firm in five years compared to last year's class.

Law 360, The 2024 Summer Associates Survey: Part 2:

Continue reading

TaxProf Blog Weekend Roundup

Saturday:

• This Week's Ten Most Popular TaxProf Blog Posts
• Bar Exam Pass Rates Are Up In 70% Of States
• Narotzki Posts Two Tax Papers On SSRN

Sunday:

• Some Of Christianity’s Biggest Intellectual Skeptics Are Becoming Vocal Converts
• NY Times: The Impact Of A Masculine Religious Revival On The Church And Society
• The Bible: A Global History
• Pepperdine Caruso Law School Hosts Discussion On Abortion And Religious Freedom
• The Top Five New Tax Papers

Some Of Christianity’s Biggest Intellectual Skeptics Are Becoming Vocal Converts

Christianity Today:  Some of Christianity’s Biggest Skeptics Are Becoming Vocal Converts, by Nathan Guy (Harding):

[A] new religious movement seems to be underway, perhaps just as offbeat as the Jesus People of the 1970s. I am talking about the growing number of “intellectual Christians”—people whose turn to faith is tethered far more to cognitive knowledge than to subjective experience. The general cultural trend on the ground is still shifting away from Christianity—most easily recognized by the exponential rise of the “nones.” But a curious trend is taking place among the elite, as a growing number of high-profile thought leaders and public figures are repudiating their antireligious paradigms in favor of the Christian framework.

Continue reading

NY Times: The Impact Of A Masculine Religious Revival On The Church And Society

Following up on last week's post, New York Times, In A First Among Christians, Young Men Are More Religious Than Young Women:  New York Times Op-Ed:  The Possible Meanings of a Masculine Religious Revival, by Ross Douthat:

For some time now, going back to the immediate aftermath of the pandemic, if not earlier, I’ve been hearing anecdotes about young men showing up at churches in unexpected numbers. Unexpected because a gender gap in religion, where women are more likely to identify with and practice Christianity, has been a consistent feature of the American religious landscape going back generations.

But maybe not any longer, or at least not for America’s younger generations. My newsroom colleague Ruth Graham has a report this week that cites data from the American Enterprise Institute showing that more Gen Z women than Gen Z men describe themselves as religiously unaffiliated — a reversal of the pattern for every older age group. And she gives life to that data point with vignettes from the religious culture of Waco, Texas, where both church and campus life (at the Baptist-founded Baylor University) offer examples of greater male investment paired with female disaffection.

Since this is a newish trend, it’s amenable to all manner of speculative interpretations, but two competing ones stand out. A masculinization of American Christianity could be seen as yet another force driving the polarization of the sexes — the diverging ideological and educational paths of men and women that are probably linked to the declining rate at which they’re pairing off. Or it could be seen as a potential answer to that polarization, a positive sign for male-female relations in the long run. ...

Continue reading

The Bible: A Global History

Wall Street Journal:  ‘The Bible’: A Book on a Mission, by Barton Swaim (reviewing Bruce Gordon (Yale Divinity School), The Bible: A Global History (2024)):

“One hundred years from my day,” Voltaire is supposed to have remarked, “there will not be a Bible on earth except one that is looked upon by an antiquarian curiosity-seeker.” Things haven’t worked out that way. The Bible is the foundational Scripture of a religion claiming a third of the planet’s population. Millions of copies are printed and sold every year, in hundreds of languages. Millions more are downloaded as apps and audiobooks. The Bible is printed and read illegally in some places, mocked and vilified in others, argued over everywhere. Its texts are studied, memorized, preached, interpreted and reinterpreted in churches, seminaries, small groups and prisons in every part of the world.

In “The Bible: A Global History,” Bruce Gordon chronicles the Christian Bible’s progression from a collection of ancient Hebrew and Greek texts—our word “Bible” is derived from the Greek biblia, “books”—to its present status as, in the author’s appropriately ambiguous phrase, “the most influential book in the world.”

Mr. Gordon, a professor of ecclesiastical history at Yale, is an accomplished historian of the Protestant Reformation; his 2009 biography of John Calvin is the finest modern life of the reformer. “The Bible,” in many ways a history of Christianity itself, is a marvelous work of scholarship and storytelling. Mr. Gordon chronicles the Christian canon’s beginnings and the early efforts to collect manuscripts into codices. He describes the Bible’s profound influence on the largely illiterate population of medieval Europe and its transformation into a source of individual spirituality in the Reformation and after. He relates the cultures of Bible-reading that sprang up in Europe and the New World and finally the Bible’s spread to India, Africa, South America and East Asia by the work of numberless translators, zealots, preachers and missionaries. ...

Continue reading

Pepperdine Caruso Law School Hosts Discussion On Abortion And Religious Freedom

Pepperdine Graphic, Law School Hosts Discussion on Abortion and Religious Freedom:

The Nootbaar and Ken Starr Institutes organized and held a lively discussion on abortion restrictions and reproductive rights, particularly on how several ongoing cases across the country relate to constitutional law and religious freedom at the Pepperdine Caruso School of Law with around 50 attendees. ...

Jessie Hill, ... professor of law and associate dean for Research and Faculty Development at Case Western Reserve University, discusses abortion rights and religious freedom. Pepperdine professor Michael Helfand, ..., the Brenden Mann Foundation Chair in Law and Religion, moderated the discussion at the Caruso School of Law. ...

“We generally associate abortion with the liberal left and religion with the conservative right. Now we have a marriage of political ideas,” Hill said, while pointing to partisan policy and politics as a core reason. ...

Continue reading

The Top Five New Tax Papers

This week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list, with some reshuffling of the order within the Top 5.

1. [904 Downloads]  Federal Tax Procedure (2024 Practitioner Ed.), by John Townsend (Houston; Google Scholar)
2. [738 Downloads]  What is Tax Fairness?, by Rita de la Feria (Leeds; Google Scholar)
3. [438 Downloads]  Reforming the Taxation of Life Insurance, by Ari Glogower (Northwestern; Google Scholar) & Andrew Granato (Yale; Google Scholar)
4. [433 Downloads]  Tax Regulations After Loper Bright, by Andy Grewal (Iowa; Google Scholar)
5. [413 Downloads]  Non-(Fully) Harmonised Excise Taxes and Irrebuttable Presumptions, by Rita de la Feria (Leeds; Google Scholar)

Editor's Note:  If you would like to receive a daily email with links to tax posts on TaxProf Blog, email me here.

This Week's Ten Most Popular TaxProf Blog Posts

Legal Education: 

1. Jewish News of Northern California, Protesters Force UC-Berkeley FedSoc Event On Judicial Reform in Israel To Shift Online; Dean Chemerinsky To Pursue Disciplinary Action Against Disruptive Students
2. ABA, Guidance Memo On Standard 208: Academic Freedom And Freedom Of Expression
3. Law360, King & Spalding Fights Bias Suit By Straight, White Female Over Summer Associate Diversity Fellowship Program
4. Daily Business Review, 2025 Hourly Billing Rates For Elite Law Firms: $3,000 For Senior Partners, $1,000 For First Year Associates
5. Derek Muller (Notre Dame) & Mike Spivey, Projected 2025-26 U.S. News Law School Rankings: 1-11
6. Chronicle of Higher Education Op-Ed (Alan Levinovitz), Are Colleges (And Law Schools) Getting Disability Accommodations All Wrong?
7. Paul Caron (Dean, Pepperdine), The Great Unfinished Pepperdine Caruso Law Symphony
8. Reuters, Critics Say Cutting 'Race And Ethnicity' From ABA Law School Diversity Accreditation Standard Goes Too Far
9. Sam Williams (Idaho), Dissecting The Frog: How A Meme Explains The Westlaw/Lexis And Generational Divide
10. David Lat (Original Jurisdiction), Ambitious Law Students Must Choose To Be On ‘Team Blue’ Or ‘Team Red’

Tax:

1. SSRN, The Top Five New Tax Papers
2. University Of Florida Tax Incubator, Complexities, Discontinuities, And Unintended Consequences Of U.S. International Tax Rules
3. Brian Leiter (Chicago), The 10 Most-Cited Tax Faculty
4. Wall Street Journal Tax Report, A Tax-Shelter Crackdown Uncovers A Dentist’s ‘Smile High Trust’
5. Tax Prof Jobs
   • LSU
   • Queen's
6. Daniel Schaffa (Richmond), Reimagining The Deduction For Employee Compensation
7. Jack Wroldsen (Cal Poly), Section 1031 Offramps: Incentives For Small Investors To Sell Single-Family Rental Homes
8. Blaine Saito (Ohio State), Review Of Winning By Losing: The Strategy Of Adverse Letter Ruling By Noah Marks (Duke)
9. Kristelia García (Georgetown), Taxing Collusion
10. SSRN, Tax Professor Rankings

Faith

1. Paul Caron (Dean, Pepperdine), The Great Unfinished Pepperdine Caruso Law Symphony
2. Fox News Op-Ed (Mike Kerrigan), What Bluegrass-Loving Friars Taught Me About A Life Of Faith: Put First Things First
3. Madeleine Kearns (The Free Press), The Young Catholic Women Bringing Back Veils
4. Christianity Today, Taste And See If The Show Is Good: How A Christian Can Revel In Breaking Bad And Better Call Saul
5. New York Times, In A First Among Christians, Young Men Are More Religious Than Young Women

Bar Exam Pass Rates Are Up In 70% Of States

Reuters, Bar Exam Pass Rates Are Up In Most States as More Scores Roll In:

The July 2024 bar exam is shaping up to be a strong one for test takers, with pass rates largely trending up — signaling good news for both law graduates and legal employers.

More than half of U.S. states had reported exam results as of Friday morning and 18 of the 26 posted higher overall pass rates than in July 2023. Ten states saw improvements of five percentage points or more. Two states had the same pass rate as last year, while 6 were down — mostly by small margins.

Continue reading

Narotzki Posts Two Tax Papers On SSRN

Doron Narotzki (Akron; Google Scholar), Chevron Unraveled, Tax Law Unleashed, 86 Ohio St. L.J. Online ___ (2025):

The article explores the profound implications of the repeal of Chevron deference on tax law. The Chevron doctrine, which historically allowed courts to defer to federal agencies' interpretations of ambiguous statutes, has been a cornerstone of administrative law. The article examines how the recent shift away from Chevron deference, highlighted by the Supreme Court's decision in Loper Bright Enterprises v. Raimondo, may affects various industries, including cannabis, cryptocurrency, renewable energy, and telecommunications, and potentially may lead to significant changes in tax policy and enforcement across these sectors. The article delves into specific examples of how this legal transformation might reshape tax practices, offering insights into the evolving balance of power between the judiciary and federal agencies in the post-Chevron landscape.

Doron Narotzki (Akron; Google Scholar), When Debt Gets a Makeover, Taxes Follow, 21 U.C. L. Bus. J. __(2024): 

Continue reading

Weekly SSRN Tax Article Review And Roundup: Speck Reviews Osofsky's Wellness And The Tax Law

This week, Sloan Speck (Colorado; Google Scholar) reviews a new work by Leigh Osofsky (North Carolina; Google Scholar), Wellness and The Tax Law, 59 Ga. L. Rev. __ (2025).

There is little doubt that the U.S. tax system’s patchwork treatment of medical care yields significant inequities, many of which reproduce broader problems with non-tax public health policy in the United States. In Wellness and the Tax Law, Leigh Osofsky explores these inequities as they arise in the context of individuals’ spending on wellness practices that foster physical and mental well-being. Medical research shows that these wellness practices are significantly correlated with preventing, mitigating, and treating identifiable health problems, with potential savings at both the individual and societal levels. Concomitantly, tax law has deployed the concept of “medical care” in more contexts, and with less consistency. Within this dynamic context, Osofsky revisits the structure and justifications for tax benefits for health-oriented spending.

Continue reading

Weekly Legal Education Roundup

• AALS, Statements Of Good Practices For Faculty Recruitment, Hiring, Retention, And Resignation
• Chronicle of Higher Education Op-Ed (Alan Levinovitz), Are Colleges Getting Disability Accommodations All Wrong?
• Paul Caron (Dean, Pepperdine), The Great Unfinished Pepperdine Caruso Law Symphony
• Daily Business Review, Senior Partners Approach $3,000 an Hour, As More Billing Rate Hikes Expected in 2025
• Florida Bar, July 2024 Florida Bar Exam Results: For The First Time In Ten Years, Florida International Is Not #1
• Jewish News of Northern California, Architect of Israeli Judicial Coup Hounded Off Stage by Unusual Mix of Protesters at Berkeley
• David Lat (Original Jurisdiction), Asked And Answered: Should I Join FedSoc?

Continue reading

Tax Policy In The Biden Administration

• Bloomberg, The Big Tax Hike Coming in Just Over a Year
• Bloomberg, Corporate Alternative Minimum Tax Rules Multiply Compliance Tasks
• Bloomberg, Countries Raise Corporate Tax Rates After Years of Decline
• Business Insider, How Rich Americans Use Life Insurance to Save on Taxes and Protect Their Kids' Inheritance With This Neat Trick
• Common Dreams, Dems Name and Shame Companies Paying Executives More Than They Pay in Federal Taxes

Continue reading

Tobin Presents Have Your Cake And Eat It Too, An Apportioned Wealth Tax Today At Boston College

Donald Tobin (Maryland; Google Scholar) presents Have your Cake and Eat it Too, An Apportioned Wealth Tax at Boston College today as part of its Tax Policy Collaborative hosted by Diane Ring:

As economic inequality in the United States becomes more extreme, there are increased calls for raising taxes on the wealthiest Americans. Some proposals seek to tax the wealthy by taxing the increase in the value of capital assets or by taxing wealth. While Congress’s taxing power is extremely broad, opponents of these tax proposals argue that these proposals are unconstitutional and are not within Congress’ taxing power. These arguments rest on the notion that Congress’ taxing power is constrained by provisions in the Constitution requiring the apportionment of direct taxes. Opponents argue that a tax on the increase in the value of capital assets or on wealth is a direct tax and that classification of a tax as a direct tax either dooms its constitutionality (if it is not apportioned) or practicality (if it is).

Continue reading

Speck: Zoom As An In-Person Learning Platform

Sloan Speck (Colorado; Google Scholar), Zoom as an In-Person Learning Platform, 99 N.D. L. Rev. 627 (2024):

During the COVID-19 pandemic, an unprecedented shift to remote learning spurred many legal educators to reassess their pedagogical norms and practices. These reassessments were enabled, in part, by the widespread adoption and acceptance of videoconferencing software, most notably Zoom, that accelerated from March of 2020. Zoom's catalytic effect on pedagogy belies the fact that no single aspect of Zoom, by itself, is particularly pathbreaking. What is revolutionary, however, is how Zoom bundles diverse functionalities into a coherent package.

By recasting Zoom as a bundle of classroom functionalities—as an in-person learning platform—this Article presents a novel use case for Zoom in legal education, distinct from the software's role in remote synchronous instruction.

Continue reading

Next Week’s Tax Workshops

Tuesday, October 8: Diane M. Ring (Boston College; Google Scholar) will present The Conflictual Core of Global Tax Corporation (with Shu-Yi Oei (Duke; Google Scholar)) as part of the UC-Irvine Current Issues in Tax Law & Policy Colloquium Speaker Series. If you would like to attend, please RSVP here. 

Tuesday, October 8: Manasi Deshpande (Chicago) will present The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment (with Rebecca Dizon-Ross (Chicago; Google Scholar)) as part of the NYU Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Daniel Shaviro. 

Continue reading

Schaffa: Reimagining The Deduction For Employee Compensation

Daniel Schaffa (Richmond; Google Scholar), Reimagining the Deduction for Employee Compensation, 57 U. Mich. J.L. Reform 417 (2024): 

U.S. businesses pay trillions of dollars in employee compensation, a substantial fraction of which is deductible for tax purposes. This deduction reduces the taxable income of businesses, ultimately lowering business tax burdens by hundreds of billions of dollars. With a few exceptions, the tax code confers the same deduction to a business for every dollar of employee compensation, regardless of whether that compensation goes to an employee earning millions or an employee earning minimum wage. This is consistent with a pure Haig-Simons income tax, under which any business expense incurred ought to be deductible dollar-for-dollar. But many, if not most, tax policy objectives are inconsistent with a pure income tax, and the U.S. tax code is accordingly replete with substantial deviations from a pure income tax.

Continue reading

2025 Hourly Billing Rates For Elite Law Firms: $3,000 For Senior Partners, $1,000 For First Year Associates

Daily Business Review, Senior Partners Approach $3,000 an Hour, As More Billing Rate Hikes Expected in 2025:

Some Am Law 50 firms will increase billing rates substantially in 2025, with expectations that some senior partners will approach $3,000 an hour and more associates will bill over $1,000 an hour. ...

According to data from Valeo Partners, which analyzes public disclosure documents to discern upcoming rate changes, senior partners at "a few firms" will have standard rates approaching $3,000, and a few might exceed that marker. ...

For associates, rate increases will be more notable among third-years. Currently, 16 of the Am Law 50 firms have third-year associates with rates over $1,000, but Valeo projects around half of the Am Law 50 to have rates of over $1,000 amongst this group by 2025.

Billing rates for first-year associates are approaching $1,000 at a handful of firms, with Paul, Weiss, Rifkind, Wharton & Garrison charging a minimum of $895 for associates in 2024, bankruptcy records show. Sullivan & Cromwell charges nearly as much—$850 hourly—for first-years.

Continue reading

Section 1031 Offramps: Incentives For Small Investors To Sell Single-Family Rental Homes

Jack Wroldsen (Cal Poly), 1031 Offramps: Incentives for Small Investors to Sell Single-Family Rental Homes, 27 N.Y.U. J. Legis. & Pub. Pol'y ___ (2025): 

It has never been so expensive to purchase a single-family home. Multiple interrelated causes headline the affordability crisis, such as historically low interest rates that suddenly spiked higher, ongoing population growth, a decade of historic underbuilding of starter homes after the Great Recession, and Wall Street's unprecedented new business model of purchasing single-family rental homes (SFRs) in concentrated areas across the country.

Yet, while those contributing causes fluctuate over time, a more structural and long-lasting factor has remained unexamined in the current crisis: the lock-in effect that arises from Section 1031 of the Internal Revenue Code. The 1031 lock-in powerfully impacts the single-family home market because, on the one hand, Section 1031 incentivizes investors to buy SFRs, and, on the other hand, it strongly disincentivizes investors from selling SFRs before death.

Continue reading

Critics Say Cutting 'Race And Ethnicity' From ABA Law School Diversity Accreditation Standard Goes Too Far

Reuters, Cutting 'Race and Ethnicity' From ABA's Law School Diversity Rules Goes Too Far, Critics Say:

Eliminating the terms “race and ethnicity” from the American Bar Association’s law school accreditation rules will hobble longstanding efforts to bring in diverse students and faculty, critics warned in public comments on the proposal.

Among the groups opposing a proposed revision of what is currently called the ABA's “diversity and inclusion” standard are legal education heavyweights including the Law School Admission Council; the Society of American Law Teachers; the NAACP Legal Defense and Educational Fund; and a coalition of 44 law school deans.

The ABA, which sets accreditation standards for 197 law schools in the U.S., currently requires law schools to provide “full opportunities” for “racial and ethnic minorities” and have a diverse student body “with respect to gender, race, and ethnicity.”

The proposed new standard—renamed the “access to legal education and the profession” standard—eliminates references to race, ethnicity and gender and instead requires law schools to provide access to “persons including those with identities that historically have been disadvantaged or excluded from the legal profession.” ...

Continue reading

Chodorow: Saban, Pope, And The Benefits Theory Of Taxation

Adam Chodorow (Arizona State; Google Scholar), Saban, Pope, and the Benefits Theory of Taxation: 

As a condition for receiving federal highway funding, Congress requires states to spend the revenues they raise from road users on the roads. Congress justified this condition, in part, because wanted federal money to supplement—not replace—state money and, in part, on fairness grounds, essentially endorsing the benefits theory of taxation, under which taxes can be justified based on the benefits taxpayers receive. To safeguard these federal funds and prevent legislatures from using road use revenues for other purposes, most states added anti-diversion provisions to their constitutions. A majority specifically identified the taxes their anti-diversion provisions would cover. However, a few—including Ohio and Arizona—adopted broad language providing that revenues from “fees, excises, or license taxes relating to registration, operation, or use of vehicles on the public highways or streets” be spent on the roads.

Continue reading