Thursday, February 4, 2010
Steven Dean (Brooklyn) presents Compliance Spirals, Fiscal Arbitrage and Tax Deregulation at Indiana-Bloomington today as part of its Tax Policy Colloquium Series organized by Ajay K. Mehrotra. Here is the abstract:
Tax deregulation is a poorly understood but pervasive phenomenon. Traditionally, it has been conflated with the related, but distinct, notion of tax simplification. Rather than merely dismissing tax deregulation as a flawed offshoot of simplification—an example of Murphy and Nagel’s “‘everyday’ libertarianism”—this Article draws a principled distinction between tax deregulation and tax simplification. It identifies both useful and harmful characteristics of tax deregulation by drawing on two important bodies of scholarship. The responsive regulation framework shows how tax deregulation can promote compliance by facilitating self-regulation. The tax expenditure literature suggests caution is warranted when deregulation permits taxpayers latitude in crafting tax results.