Paul L. Caron
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Sunday, May 5, 2024

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.

  1. SSRN Logo (2018) [873 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [541 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [473 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [400 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [314 Downloads]  Money Moves: Taxing the Wealthy at the State Level, by Brian Galle (Georgetown; Google Scholar), David Gamage (Missouri-Columbia; Google Scholar) & Darien Shanske (UC-Davis; Google Scholar)

May 5, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Friday, May 3, 2024

Weekly SSRN Tax Article Review And Roundup: Eyal-Cohen Reviews Efficiency vs. Welfare In Benefit-Cost Analysis — The Case Of Government Funding By Liscow & Sunstein

This week, Mirit Eyal-Cohen (Alabama; Google Scholar) reviews Zachary D. Liscow (Yale; Google Scholar) & Cass R. Sunstein (Harvard; Google Scholar), Efficiency vs. Welfare in Benefit-Cost Analysis: The Case of Government Funding, 15 J. Benefit-Cost Analysis ___ (2024).

Eyal-Cohen

Benefit-Cost Analysis (“BCA”) is a methodical approach to assessing the economic advantages and disadvantages of different options that fulfill transactions, activities, or functional needs for businesses or individuals. Whether we are aware of it or not, we widely employ this method in everyday life as a tool for making decisions when assessing the viability of a project and comparing its strengths and weaknesses. Whether it is investing in higher education, buying a new appliance, or implementing a new business strategy, BCA enables us to evaluate the financial and practical consequences of our choices and efficiently optimize the allocation of our resources.

This Article critically examines the use of BCA in government funding decisions, particularly focusing on how its application has evolved to incorporate concerns for social welfare and equity.

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May 3, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Kuehn: The Fallacy Of 'We Can't Afford More Clinical Legal Education For Our Students'

Robert R. Kuehn (Washington University; Google Scholar), The Fallacy of 'We Can't Afford More Clinical Legal Education for Our Students', 32 Clin. Legal Educ. Ass’n Newsl. ___ (2024):

CLEAPrevious proposals by the ABA and state bar authorities to require more experiential training for law students have met with objections from some legal educators that mandating more experiential coursework, especially law clinics, would impose large costs on schools that would have to be passed on to students. Yet analysis of data from the 2022-23 academic year demonstrates that law schools can provide all their students with enhanced clinical training, including a mandated law clinic experience, without having to increase the tuition students pay.

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May 3, 2024 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Akron Hosts International Tax Symposium

Akron hosted an International Tax Symposium yesterday: 

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May 3, 2024 in Conferences, Scholarship, Tax, Tax Conferences, Tax Daily | Permalink

Thursday, May 2, 2024

Zhang: Fiscal Citizenship And Taxpayer Privacy

Alex Zhang (Emory; Google Scholar), Fiscal Citizenship and Taxpayer Privacy, 125 Colum. L. Rev. __ (2025):

Columbia Law ReviewInequality 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. 

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May 2, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Lipman: Not Taxing Puerto Rico—Whitewashing Impoverishment In United States v. Vaello Madero

Francine J. Lipman (UNLV; Google Scholar), Not Taxing Puerto Rico: Whitewashing Impoverishment in United States v. Vaello Madero, 77 Tax Law. 357 (2024): 

Tax lawyerPuerto Rico is a lush archipelago located between the Caribbean Sea and the North Atlantic Ocean. More than three million U.S. citizens with diverse racial and ethnic histories and cultures live on the islands. But life for Puerto Ricans has been challenging with high rates of impoverishment, disability, unemployment, and devastating natural disasters. In addition to these challenges, Puerto Rico has a complicated relationship with the United States. Indeed, residents, 99 percent of whom identify as Hispanic, are treated “separately and unequally” in many aspects by the federal government compared to their state counterparts. One significant difference is the federal tax treatment of Puerto Rican residents.

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May 2, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Mayer: Charity Law And Blockchain Technology

Lloyd Hitoshi Mayer (Notre Dame; Google Scholar), Charity Law & Blockchain Technology: Using Old Wineskins for New Wine?, 77 Tax Law. __ (2024):

Tax lawyerWhenever something new emerges, the question of how existing law applies arises. Sometimes it is both easy to answer that question and the answer is consistent with the policy goals of existing law. But sometimes the answer to that question is uncertain, does not fit well with those policy goals, or reflects a mixture of these two issues.

This question is particularly vexing today with respect to new assets facilitated by blockchain technology. These new assets include cryptocurrencies, non-fungible tokens (NFTs), and ownership interests in decentralized autonomous organizations (DAOs). Commentators have written about how certain laws, particularly securities law, apply to these new assets. However, there is one legal area that commentators have yet to fully address: charity law, especially the federal tax laws relating to charities. Charities and donors are increasingly involved in transactions involving these new assets, with little guidance about how this law applies to those transactions.

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May 2, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Determinants Of Success On The Bar Exam: One Law School's Experience 2010-2023

Morris Ratner (UC Law SF), Stephen Goggin (San Diego State; Google Scholar), Stefano Moscato (UC Law SF), Margaret Greer (UC Law SF) & Elizabeth McGriff (UC Law SF), Determinants of Success on the Bar Exam: One Law School's Experience 2010-2023, 73 J. Legal Educ. ___ (2024):

Journal of legal educationFrom 2010-2013, the UC Law SF first-time bar pass rate floated with the average first-time pass rate of graduates of ABA-accredited law schools in California. But suddenly, in the space of three years (2014-2016), the law school’s bar pass rate dropped to a much greater degree than changes in student metrics or statewide variations in pass rates could explain, to a historical low on the July 2016 administration of the California Bar Exam of just 51%. In response, the law school thoroughly revamped its approach to teaching academic and bar success skills. Within three years, the UC Law SF bar pass rate increased by about 30%. This Article uses statistical analysis to assess which of the law school’s academic reforms adopted after 2016 contributed to the law school’s bar pass turnaround.

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May 2, 2024 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Wednesday, May 1, 2024

Pepperdine Tax Policy Workshop Series (Spring 2024)

Thanks to Deanna Newton, the faculty who came to Malibu, and our students who made the Spring 2024 Pepperdine Tax Policy Workshop Series such a rousing success:

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May 1, 2024 in Colloquia, Pepperdine Tax, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Morse: The Truth About Safe Harbors

Susan C. Morse (Texas; Google Scholar), The Truth About Safe Harbors, 92 Tenn. L. Rev. __ (2025):

Tennessee law reviewSafe harbors are everywhere in law. Safe harbors have a modest, gentle appearance. They provide by rule that particular facts comply with the law and will result in no penalty. They are otherwise silent.

This modest appearance conceals the possible deceptive qualities of safe harbors. As this Article explains, the implementation of safe harbors often harms those outside safe harbor boundaries, by treating their behavior as illegal even though the safe harbor does not say so. This collateral harm is especially likely when intermediaries implement safe harbors, because of monitoring costs, risk and uncertainty aversion, and multiple stakeholders.

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May 1, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Tuesday, April 30, 2024

Thimmesch Reviews Layser's State Tax Incentive Reform

Adam Thimmesch (Nebraska; Google Scholar), Opportunity and Obstacle: State Tax Incentives and the Fight Against Poverty (JOTWELL) (reviewing Michelle D. Layser  (San Diego; Google Scholar), Removing Barriers to State Tax Incentive Reform, 171 U. Pa. L. Rev. 5 (2023)):

Jotwell Tax (2023)The stark contrast between the United States’ widespread prosperity and the deep-seated poverty afflicting many of its people and communities underscores the nation’s complex economic landscape. Equally complex are the political and legal landscapes surrounding our nation’s anti-poverty efforts. States currently have much of the responsibility for administering federal anti-poverty programming and for directly serving the people and places suffering from economic hardship. Simultaneously, however, states are restricted in their abilities to pursue social welfare goals because of the mobility of capital and labor within the United States. States have responded to these challenges by turning to investment-based tax credits to drive development, but that approach has been disfavored by many progressives and often fails to deliver help to the in-state people and places in need.

Michelle D. Layser offers a unique assessment of this difficult situation in her recent article, Removing Barriers to State Tax Incentive Reform.

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April 30, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

17 Ways To Regulate BigTech With Tax

Allison Christians (McGill; Google Scholar) & Tarcísio Diniz Magalhães (Antwerp; Google Scholar), 17 Ways to Regulate BigTech with Tax, 77 Tax Law. __ (2024):

Tax lawyerBigTech’s outsize power and influence have prompted policymakers and experts in the United States and around the world to turn to taxation both for the sake of raising revenue and as a regulatory tool. There are currently at least seventeen distinct tax reform ideas circulating across the international community, some unilateral and others multilateral, all of which seek to rein in BigTech in some way. This Article examines these seventeen tax reform ideas, analyzes their pros and cons from a regulatory and distributive perspective, and compares their respective rationales and relative viability. 

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April 30, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

SSRN Tax Professor Rankings

SSRN Logo (2018)SSRN has updated its monthly ranking 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 April 1, 2024) 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 (Michigan)  231,437 1 Jonathan Choi (USC) 25,741
2 Daniel Hemel (NYU) 133,685 2 Amy Monahan (Minnesota) 13,674
3 Dan Shaviro (NYU) 128,562 3 Reuven Avi-Yonah (Michigan) 12,326
4 David Gamage (Missouri-Columbia) 128,506 4 Kristin Hickman (Minnesota) 7,978
5 Lily Batchelder (NYU) 128,118 5 David Gamage (Missouri-Columbia) 4,730
6 Darien Shanske (UC-Davis) 120,186 6 Bridget Crawford (Pace) 4,406
7 David Kamin (NYU) 114,951 7 Daniel Hemel (NYU) 4,322
8 Cliff Fleming (BYU)    108,935 8 Zachary Liscow (Yale) 4,021
9 Manoj Viswanathan (UC-SF) 105,169 9 Kim Clausing (UCLA)     4,014
10 Ari Glogower (Northwestern) 104,769 10 Kyle Rozema (Northwestern) 3,840
11 Rebecca Kysar (Fordham) 104,249 11 Louis Kaplow (Harvard) 3,679
12 D. Dharmapala (UC-Berkeley) 53,457 12 D. Dharmapala (UC-Berkeley) 3,648
13 Michael Simkovic (USC) 49,904 13 Brad Borden (Brooklyn) 3,338
14 Louis Kaplow (Harvard) 43,215 14 Darien Shanske (UC-Davis) 3,265
15 Paul Caron (Pepperdine) 42,169 15 Robert Sitkoff (Harvard) 3,108
16 Richard Ainsworth (Boston Univ) 39,926 16 Ruth Mason (Virginia) 2,956
17 Bridget Crawford (Pace) 39,815 17 Jordan Barry (USC) 2,755
18 Jonathan Choi (USC) 36,694 18 David Weisbach (Chicago) 2,636
19 Robert Sitkoff (Harvard) 34,756 19 Richard Ainsworth (Boston University) 2,624
20 Brad Borden (Brooklyn) 33,327 20 John R. Brooks (Fordham) 2,577
21 Ruth Mason (Virginia) 32,172 21 Brian Galle (Georgetown) 2,428
22 Amy Monahan (Minnesota) 31,363 22 Steve Black (Texas Tech) 2,427
23 Vic Fleischer (UC-Irvine) 30,944 23 Michael Simkovic (USC) 2,384
24 Ed Kleinbard (USC) 30,205 24 Young Ran (Christine) Kim (Cardozo) 2,247
25 Kim Clausing (UCLA) 29,644 25 Dan Shaviro (NYU) 2,223

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April 30, 2024 in Legal Education, Scholarship, Tax, Tax Daily, Tax Prof Rankings | Permalink

Monday, April 29, 2024

Advani Presents How Responsive Are Top Earners To Tax Rates? Today At Oxford

Arun Advani (Warwick; Google Scholar) presents Top Flight: How Responsive Are Top Earners to Tax Rates? (with Cesar Poux (London School of Economics) & Andy Summers (London School of Economics)) at Oxford today as part of its Oxford Centre for Business Taxation Seminars:

Arun AdvaniUsing administrative data on the universe of UK taxpayers, we leverage major top tax rate reforms in the UK and France to evaluate how much top earners respond to tax increases by migrating. We document four main facts. First, looking across foreigners we find a migration semi-elasticity with respect to the net-of-average-tax rate of -0.2, somewhat lower than has been found for specific groups studied previously. Second, migration responses are driven by those with the highest predicted baseline emigration probability, highlighting the importance of accounting for heterogeneity. Third, there is little migration response from natives. Finally, we estimate the long term impact of tax changes on the stock of migrants among UK top earners taking a structural approach, and find that even our modest migration elasticity implies substantial stock changes in the long run.

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April 29, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Sunday, April 28, 2024

The Top Five New Tax Papers

There 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. SSRN Logo (2018) [866 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [527 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [448 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [385 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [298 Downloads]  Money Moves: Taxing the Wealthy at the State Level, by Brian Galle (Georgetown; Google Scholar), David Gamage (Missouri-Columbia; Google Scholar) & Darien Shanske (UC-Davis; Google Scholar)

April 28, 2024 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, April 27, 2024

The Tax Ramifications Of Name, Image, And Likeness Deals For Student-Athletes

Haley A. Ritter (Orrick, Herrington & Sutcliffe, Irvine, CA), Stars on the Field, Benchwarmers on the Tax Return: Student-Athletes and the Tax Ramifications of Name, Image, and Likeness Deals, 26 Chap. L. Rev. 401 (2022)

Chapman law reviewWith NCAA v. Alston, new state legislation, new NCAA guidance, and potentially new federal legislation, the landscape of financial planning and taxes for student-athletes is turning into a new game entirely. These positive changes have added new burdens to student-athletes’ tax responsibilities, including higher tax payments, more complex calculations, and more record keeping requirements. 

As independent contractors, student-athletes need to pay twice as many employment taxes as employees and will need to pay quarterly estimated payments. They will benefit from being able to deduct certain expenses as ordinary and necessary business expenses; however, this will require thorough record keeping and a determination of the student-athletes’ tax home. Student-athletes could create an LLC to minimize taxes, but this creates more responsibilities for a student-athlete. 

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April 27, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Friday, April 26, 2024

Weekly SSRN Tax Article Review And Roundup: Elkins Reviews The Policy And Politics Of Alternative Minimum Taxes By Gamage & Glogower

This week, David Elkins (Netanya, Google Scholar) reviews David Gamage (Missouri-Columbia; Google Scholar) & Ari Glogower (Northwestern; Google Scholar), The Policy and Politics of Alternative Minimum Taxes, 78 Nat’l Tax J. _ (2024).

Elkins (2018)

The first Alternative Minimum Tax (AMT) was enacted in 1978 following reports that wealthy taxpayers were able to avoid paying any income tax by exploiting numerous preferences available to them. Whatever the policy justifications for each particular preference, there was a widespread sentiment that wealthy taxpayers should nevertheless pay some income tax. Congress therefore provided that the minimum tax that one must pay is a certain percentage of one’s “alternative minimum taxable income,” which is equal to what one’s taxable income would have been were it not for a number of specified tax preferences. Such AMTs, in which Congress restricts with one hand the use of preferences that it grants with the other, are frequently met with derision among tax scholars. If the preferences are appropriate, in the sense that society is better off (by whatever measure one chooses to determine societal well-being) with them than without them, then there is nothing wrong with taxpayers actually benefiting from such preferences. 

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April 26, 2024 in David Elkins, Scholarship, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup | Permalink

Next Week’s Tax Workshop

Next Week's Tax Workshops - twitterMonday, April 29: Arun Advani (Warwick; Google Scholar) will present Top Flight: How Responsive Are Top Earners to Tax Rates? (with Cesar Poux (LSE) & Andy Summers (LSE)) as part of the Oxford Centre for Business Taxation Seminars. If you would like to attend, please RSVP here

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April 26, 2024 in Colloquia, Legal Education, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Layser: Privacy And Tax Information Collection: A Response To Blank And Glogower

Michelle D. Layser (San Diego; Google Scholar), Privacy and Tax Information Collection: A Response to Blank and Glogower:

In a recent article published in the Iowa Law Review [The Tax Information Gap at the Top, 108 Iowa L. Rev. 1597 (2023)], Professors Joshua Blank and Ari Glogower proposed a new “actor-based” information reporting regime that would be more comprehensive, more difficult to avoid, and more equitable than the current approach. However, their proposal would create new privacy risks that are not implicated by the current regime. Privacy values are an important tax policy objective that must be analyzed along with the values of efficiency, equity, and administrability. Accordingly, this Essay draws on theory about tax privacy to analyze the privacy implications of actor-based reporting.

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April 26, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Thursday, April 25, 2024

America's Failure To Rescue Parents: A Narrative Of Inequitable Tax "Reform"

Shannon Weeks McCormack (University of Washington), America's Failure to Rescue Parents: A Narrative of Inequitable Tax "Reform", 76 U.C. L.J. ___ (2025):

Uc law journalOther developed nations provide a slew of direct benefits to parents, such as paid parental leave and affordable childcare. America instead takes a circuitous route, heavily relying on the Internal Revenue Code (the “Code”) to provide tax breaks to certain parents. In addition to being indirect and comparatively stingy, these “parental tax benefits” are not awarded equitably. Instead, they favor non poor one breadwinner families, ignore the plight of non poor working parents incurring substantial childcare and other work-related costs, exhibit an outright hostility towards poor parents and raise a host of other distributional concerns. This preferentialism is sticky––when Congress alters parental tax benefits, it rarely deviates from these patterns.

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April 25, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Avi-Yonah & Shanan: Rethinking Taxing Excess Profits

Reuven S. Avi-Yonah (Michigan; Google Scholar) & Tamir Shanan (Haim Striks Faculty of Law, College of Management, Israel; Google Scholar), Rethinking Taxing Excess Profits, 77 Tax Law. 269 (2024):

Tax lawyerThis article discusses the application of excess profit taxes (EPTs, also referred to as windfall taxes) that have gained renewed interest and popularity over the past several years. The revival of these windfall taxes gained renewed interest following the COVID-19 outbreak, which led to a sharp price increase in corporate revenues of medical equipment and within pharmaceutical industries. However, the revival of such taxes was also used following the recent rise in energy prices mainly in Europe, leading to a sharp increase in corporate revenues of energy corporations and the recent surge in borrowing interest rates that was not accompanied by a corresponding increase in lenders’ interest rates which, in turn, led to a sharp increase in the corporate revenues of the banking sector.

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April 25, 2024 in ABA Tax Section, Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Raskolnikov: Taxing The Ten Percent

Alex Raskolnikov (Columbia), Taxing the Ten Percent, 62 Hous. L. Rev. __ (2025):

Houston law reviewThe United States government is rapidly approaching the point when it will have no choice but to raise taxes. But whose taxes should go up, and why? The argument for higher taxes on the top one percent is well known. The case for higher taxes on the next nine percent is not. This Article makes that case.

Americans with incomes in the top ten percent but not the top one percent are not rich, but they are not middle class either—they are affluent. 

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April 25, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Wednesday, April 24, 2024

Gamage & Glogower: The Policy And Politics Of Alternative Minimum Taxes

David Gamage (Missouri-Columbia; Google Scholar) & Ari Glogower (Northwestern; Google Scholar), The Policy and Politics of Alternative Minimum Taxes, 78 Nat’l Tax J. __ (2024):

National tax journalThis essay contributes to a literature offering qualified justifications for Alternative Minimum Tax (AMT) structures. We conclude that there is a narrow case for justifying AMTs even from the social planner perspective and that the proposed Billionaire’s Minimum Income Tax satisfies that narrow case. Next, incorporating governance collective action problems and electoral political constraints, we conclude that these considerations support a broader case for justifying AMTs that potentially also supports both preference-disallowance AMTs and the new corporate alternative minimum tax enacted in 2022.

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April 24, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Sachs: Abortion, Tax, And Wayfair

Stephen E. Sachs (Harvard; Google Scholar), Abortion and the Wayfair Case:

WayfairYesterday in my conflict of laws class I taught South Dakota v. Wayfair, the 2018 case which lets states force out-of-state sellers to collect and remit use taxes. This morning I wondered why it hasn't been invoked more in the debates over interstate restrictions on abortion. ...

Wayfair might scramble current debates over abortion pills like mifepristone. Suppose an out-of-state entity—a pharmacy, an abortion-rights nonprofit, etc.—ships abortion pills to a user in a state where abortion is illegal. Right now the Supreme Court is considering a case asking whether this use of the mails is illegal under the Comstock Act (though it might well be resolved on standing grounds instead). And a state that made such shipments illegal might have trouble enforcing its laws across state lines; one state's "penal judgments" typically aren't enforced by another, as a longstanding exception to judgment recognition.

So what if the state follows the Al Capone strategy and uses tax law instead?

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April 24, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Tuesday, April 23, 2024

Sarin Presents Broken Budgeting Today At Georgetown

Natasha Sarin (Yale; Google Scholar) presents Broken Budgeting (with Safia Sayed (J.D. 2025, Yale)) at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Emily Satterthwaite and Dayanand Manoli: 

Natasha-sarinAs peacetime deficits rose over the course of the last half century, policymakers searched for tools to assess how close—or far off—new budget, tax, and spending proposals would bring them to fiscal sustainability. This search led to the birth of modern scorekeeping, a complex and highly technical exercise undertaken by neutral government analysts known as scorekeepers. Because its origins are tied to rising deficits, scorekeepers are governed by rules that focus their attention on myopic cost/benefit analysis, rather than long-term policy evaluation. Over the years, many have criticized the process and questioned the accuracy of scores in particular arenas.

This Article offers a more provocative and fulsome take. While ostensibly neutral, the primacy of scorekeeping and scorekeepers has created impediments to legislating a progressive vision of government. Progressive policymaking has at its core government interventions that give society the ability to reap benefits down the line—like investments in children, or in combatting climate change—benefits that accrue in the long-term and are difficult to quantify. Presently, scorekeepers register these types of interventions as costs to the fisc rather than profitable investments, and that hinders their adoption. This is not the fault of scorekeepers, who have limited scope to act outside their mandate. But it is a critique of that mandate, which creates a process that is far from neutral: instead, one that skews policy outcomes against progressive reforms that invest in future generations and in redressing inequality.

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April 23, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Pittsburgh Tax Review Call For Papers: Combatting Poverty Through Federal Tax Policy

Pittsburgh Tax Review Call for Papers: Combatting Poverty Through Federal Tax Policy

Pittsburgh tax reviewAccording to the U.S. Census, in 2022 there were over 37 million people in the United States in poverty. Though, at one time, perhaps the tax code had little to do with relieving poverty, at least since 1975, with the enactment of the Earned Income Tax Credit, Congress has increasingly used tax law as a means of relieving poverty. In light of the important role that tax law and policy now plays in addressing poverty as well as income and wealth inequality in the United States, the Pittsburgh Tax Review invites contributions to a curated issue on the theme of “Combatting Poverty Through Federal Tax Policy.” Contributions will be published in the Fall 2024 issue of the journal’s twenty-second volume.

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April 23, 2024 in Conferences, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship | Permalink

Monday, April 22, 2024

Graetz Presents The Power to Destroy: How The Antitax Movement Hijacked America Today At Pepperdine

Michael J. Graetz (Columbia), presents The Power to Destroy: How the Antitax Movement Hijacked America (Princeton University Press 2024) (reviewed by Martin Sullivan here) at Pepperdine today as part of the Tax Policy Workshop Series hosted by Deanna Newton:

The power to destroy

The postwar United States enjoyed large, widely distributed economic rewards—and most Americans accepted that taxes were a reasonable price to pay for living in a society of shared prosperity. Then in 1978 California enacted Proposition 13, a property tax cap that Ronald Reagan hailed as a “second American Revolution,” setting off an antitax, antigovernment wave that has transformed American politics and economic policy. In The Power to Destroy, Michael Graetz tells the story of the antitax movement and how it holds America hostage—undermining the nation’s ability to meet basic needs and fix critical problems.

In 1819, Chief Justice John Marshall declared that the power to tax entails “the power to destroy.” But The Power to Destroy argues that tax opponents now wield this destructive power. Attacking the IRS, protecting tax loopholes, and pushing tax cuts from Reagan to Donald Trump, the antitax movement is threatening the nation’s social safety net, increasing inequality, ballooning the national debt, and sapping America’s financial strength. The book chronicles how the movement originated as a fringe enterprise promoted by zealous outsiders using false economic claims and thinly veiled racist rhetoric, and how—abetted by conservative media and Grover Norquist’s “taxpayer protection pledge”—it evolved into a mainstream political force.

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April 22, 2024 in Colloquia, Pepperdine Tax, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Avi-Yonah & Salama: Taxation Of Autonomous Artificial Intelligence

Reuven S. Avi-Yonah (Michigan; Google Scholar) & Lucas Salama (Michigan), Taxation of Autonomous Artificial Intelligence: Socially Sustainable Expansion of Automation and Impacts on International Tax:

This paper investigates if artificial intelligence should be taxed independently from its controllers or owners and how this could be structured and used to benefit tax administration while being a positive influence for private sector stakeholders. The main question that will be investigated is whether the reasons for taxing such entities outweigh the respective negative consequences. We propose that autonomous A.I. has started a transformation in the way legal systems around the world assign rights and obligations, and creating a tax on the profits generated by autonomous systems is not only coherent with the current business entity model of taxation, it is also an effective way to address the international tax challenges arising from A.I. operating in multiple jurisdictions and in providing a reliable structure for regulation, and potentially creating a way to safeguard socially responsible expansion in the use of automation.

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April 22, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Sunday, April 21, 2024

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.

  1. SSRN Logo (2018) [858 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [505 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [434 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [369 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [278 Downloads]  Designing a Powerful General Anti-Avoidance Rule: Reflections on the New Zealand Experience, by Craig Elliffe (Auckland; Google Scholar)

April 21, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Friday, April 19, 2024

Weekly SSRN Tax Article Review And Roundup: Speck Reviews Elkins's Rules, Standards, And The Value Of Certainty In Tax Law

This week, Sloan Speck (Colorado; Google Scholar) reviews David Elkins (Netanya; Google Scholar), Rules, Standards, and the Value of Certainty in Tax Law.

Sloan-speck

In Rules, Standards, and the Value of Certainty in Tax Law, David Elkins brings a fresh and engaging perspective to well-traveled debates about the choice between rules and standards in taxation. Elkins juxtaposes the doctrinal significance of standard-based antiabuse doctrines in U.S. tax law with the IRS’s relatively low audit rates for self-reported tax returns. This wedge, Elkins argues, has a lottery-like effect. The “inherent indeterminacy” of standard-based antiabuse doctrines allows taxpayers to “safely ignore them when taking positions” (18). If those positions are questioned by the IRS, the after-the-fact assertion of antiabuse doctrines effectively applies an alternative body of law to the unlucky (or unfortunate) taxpayers selected for audit, which presents moral, equity, and efficiency concerns. As a result, Elkins concludes that, “in general, standards have no role to play in the tax system, even simply as a complement to a rules-based structure” (id.). Elkins’s thesis challenges a long arc in tax law and scholarship that sees a meaningful—and perhaps essential—role for antiabuse doctrines in tax law.

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April 19, 2024 in Scholarship, Sloan Speck, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup | Permalink

Raskolnikov Presents Equality Plus Equity: Law And Redistribution In A Capitalist Democracy Today At Cornell

Alex Raskolnikov (Columbia) presents Equality Plus Equity: Law and Redistribution in a Capitalist Democracy at Cornell today as part of its Faculty Workshop Series:

Alex raskolnikovIf the law of capitalism is rigged in favor of the wealthy, why is the rigging so shoddy? If majority rule offers an easy path to soaking the rich, why are the rich still not soaked? Clearly, there are real constraints on the distributional effects of legal rules in modern Western societies. These constraints are binding, long-standing, and consequential—but what are they, exactly, and why do they exist?

This paper offers an answer. Formal equality—same rules for the rich and the poor, the strong and the weak—is essential to a modern capitalist democracy. Political theories ranging from libertarianism to liberalism and Marxism all hold this view. A widely shared commitment to the rule of law reflects it as well. Even theories that reject formal equality reveal its strong influence. But the commitment to formal equality cannot be absolute. A legal system that fully reflects formal equality would allow deprivation. Not only is deprivation inequitable, it undermines, even destroys, the fundamental values underlying every political theory just mentioned. 

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April 19, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Next Week’s Tax Workshops

Next Week's Tax Workshops - twitterMonday, April 22: Michael J. Graetz (Columbia) will present The Power to Destroy: How The Antitax Movement Hijacked America (Princeton University Press 2024) (reviewed by Martin A. Sullivan here) as part of the Pepperdine Tax Policy Workshop Series. If you would like to attend, please contact Deanna Newton

Tuesday, April 23: Natasha Sarin (Yale; Google Scholar) will present Broken Budgeting (with Safia Sayed (J.D. 2025, Yale)) as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Emily Satterthwaite and Dayanand Manoli

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April 19, 2024 in Colloquia, Legal Education, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Thursday, April 18, 2024

The Tax Lawyer Publishes New Issue

The Tax Lawyer has published Vol. 77, No. 2 (Winter 2024):

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April 18, 2024 in ABA Tax Section, Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

UC-Irvine Hosts Symposium Today On Moore And The Future Of The Realization Doctrine

UC-Irvine hosts a symposium today on The Moore Case and the Future of the Realization Doctrine today (program): 

UCI Law (2022)The Graduate Tax Program at the University of California, Irvine School of Law will host its sixth annual UCI Law|Taylor Nelson Amitrano LLP Tax Symposium on April 18, 2024. Sponsored by the Law Offices of Taylor Nelson Amitrano LLP, the theme of this year’s symposium is The Moore Case and the Future of the Realization Doctrine.

This virtual event will feature keynote speaker, David Kamin. Kamin’s scholarship focuses on tax and budget policy, and he served in the White House under President Biden and President Obama. 

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April 18, 2024 in Conferences, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship | Permalink

Roosevelt Institute Hosts Tax Policy As Competition Policy Today

Tax policy as competition policyThe Roosevelt Institute hosts Tax Policy as Competition Policy: Reimagining How the US Tax Code Can Foster a More Equitable and Participatory Economy today at 12:00 PM EST (RSVP): 

Excessive market power by dominant corporations is widely decried across the political divide. Federal and state antitrust agencies have begun to reclaim their rightful roles in checking the power of a few firms to control so much of the economy. Historically, tax policy complemented these antitrust enforcers by leveling the economic playing field. Yet today, taxation remains overlooked both as a driver of current levels of market concentration and as a tool to remedy the problem.

Roosevelt’s Taxing Monopolies series explores how a rewriting of the tax code can work alongside other antimonopoly tools to curb the excessive economic and political power of large corporations and their owners.

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April 18, 2024 in Conferences, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship | Permalink

Wednesday, April 17, 2024

Symposium: The Federal Income Tax—Racially Blind But Not Racially Neutral

National Tax Association 117th Annual Conference Call for Papers: April 19th Deadline

117th_2024_CFP_1375_341-1024x254National Tax Association 117th Annual Conference Call for Papers

The 117th Annual Conference on Taxation will cover a broad range of topics in tax policy and public finance. We welcome submissions from the fields of accounting, economics, law, and public policy and administration, as well as research from other fields or by practitioners that relates to these topics.

We especially welcome submissions that can speak to current challenges facing policymakers such as the effect of digitalization/e-commerce/remote work on public finances, minimum taxes and international tax law, the child tax credit and other family policies, and global challenges to government finances.

You are invited to submit the following: individual papers to be integrated into sessions, proposals for complete sessions of papers, and proposals for panel discussions (roundtable format, just speakers, no papers). Please note that full session proposals are mere suggestions of groupings. The conference committee reserves the right to consider and accept individual papers from a complete session rather than accepting the complete session, break apart complete sessions or otherwise change the full session.

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April 17, 2024 in Conferences, Legal Education, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship | Permalink

Moore v. United States And The Original Public Meaning Of 'Taxes On Incomes'

Jonathan Grossberg (Thomson Reuters), Kerry Inger (Auburn; Google Scholar) & Carneil Wilson (Dentons Sirote, Birmingham, AL), Moore v. United States and The Original Public Meaning of "Taxes on Incomes", 43 ABA Tax Times __ (2024):

Aba-tax-timesThe concept of a “tax on income” at the time of the adoption of the Sixteenth Amendment is best understood not from a selective dictionary definition that ignores the lack of reference to realization even when that term (or related terms) is defined in the same dictionary nor from a careful selection of phrases from a treatise but rather from a full public understanding of the term as used by those who professionally studied or practiced taxation. In particular, the misguided reliance on Macomber as establishing a universal realization requirement for all taxable income fails to read either the case or related cases accurately. 

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April 17, 2024 in ABA Tax Section, Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

The Experiences Of Non-Traditional Law Deans And The Law Schools That Hire Them

Timothy Fisher (Dean, Connecticut (2013-2020); Google Scholar), Lessons Learned: The Experiences of Non-Traditional Law Deans and the Law Schools That Hire Them:, 72 J. Legal Educ. ___ (2024):

Journal of Legal Education (2024)Ten years ago, the United States legal academy confronted a surprising drop in student enrollment and corresponding financial pressures. Over the ensuing years most law schools recovered, albeit with significant trimming, and for the most part rebalanced their faculty and student body in a sustainable fashion. On today’s horizon, however, is a greater and more sustained threat. A shrunken student population pipeline has hit colleges and will soon reach law schools. Inflationary pressures on wages have risen, while students’ and parents’ tolerance for tuition increases may have peaked. These financial pressures will be greatest on “access” law schools – those with the fewest financial resources and whose students are likewise the least well off financially.

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April 17, 2024 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Tuesday, April 16, 2024

Maynard Presents Penalizing Precarity Today At Georgetown

Goldburn P. Maynard, Jr. (Indiana-Kelley; Google Scholar) presents Penalizing Precarity, 123 Mich. L. Rev __ (2024) (with Clinton Wallace (South Carolina; Google Scholar)), at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Emily Satterthwaite and Dayanand Manoli: 

Goldburn maynardRetirement policy in America is oriented around 401(k) accounts and other employer-sponsored savings plans, which will receive a whopping $1.5 trillion in tax subsidies over the next decade. This Article uncovers a harmful flaw in a common feature of these plans. The problem arises from a gap in the rules governing withdrawals made prior to reaching retirement age. Employees are generally required to seek approval from their plan administrator to receive a “hardship distribution,” which they are granted if they face an “immediate and heavy financial need,” like eviction or an unexpected medical expense. But even with this approval, these distributions are frequently subject to an “early withdrawal penalty,” a separate regime that is not coordinated with the hardship distribution rules.

This Article shows that the gap between the two sets of rules is little known to workers, employers and even policymakers. We document instances of taxpayers surviving financial calamity thanks to a hardship distribution only to learn that they now face a tax penalty—resulting in another cash crunch. 

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April 16, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Jensen: The Commerce Clause Doesn’t Override Rules Governing The Taxing Power

Erik M. Jensen (Case Western), The Commerce Clause Doesn’t Override Rules Governing the Taxing Power, 182 Tax Notes Fed. 1603 (Feb. 26, 2024):

Tax Notes Federal (2022)In this article, Jensen challenges the argument that limitations on the taxing power in the Constitution can be ignored if a specific tax can be considered a regulation of commerce, and he examines the implications for Moore. ...

Libin Zhang has taken the position that the government missed the opportunity in Moore to argue — in briefs and during the December 5, 2023, oral argument — that the Supreme Court should uphold the mandatory repatriation tax (MRT) as a valid exercise of congressional power under the foreign commerce clause [Moore Implications From Forgetting the Foreign Commerce Clause, 182 Tax Notes Fed. 1031 (Feb. 5, 2024)].

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April 16, 2024 in Scholarship, Tax, Tax Analysts, Tax Daily, Tax Scholarship | Permalink

Monday, April 15, 2024

Festschrift To Honor Ellen Aprill

Festschrift to Honor Ellen Aprill, 56 Loy. L.A. L. Rev. 1135-1354 (2023):

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April 15, 2024 in Legal Education, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship | Permalink

Sunday, April 14, 2024

The Top Five New Tax Papers

There is quite a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads, with new papers debuting on the list at #1 and #4.

  1. SSRN Logo (2018) [821 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [493 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [403 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [327 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [277 Downloads]  Designing a Powerful General Anti-Avoidance Rule: Reflections on the New Zealand Experience, by Craig Elliffe (Auckland; Google Scholar)

April 14, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, April 13, 2024

March's Tax Reflections With Reuven Avi-Yonah

Reuven S. Avi-Yonah (Michigan; Google Scholar):

Tax Notes Federal (2022)Why the United States Needs a GAAR, 182 Tax Notes Fed. 1809 (Mar. 4, 2024):

Avi-Yonah advocates for Congress to adopt a general antiabuse rule to combat loopholes formed by the voluminous tax code.

Should Digital Services Taxes Be Creditable?, 182 Tax Notes Fed. 2031 (Mar. 11, 2024):

Avi-Yonah argues that because digital services taxes are used to offset the taxation impediment that “digital giants” cannot be taxed under permanent establishment rules, they should qualify as an in-lieu-of tax and therefore be creditable.

Answering the Right Question in Rawat, 182 Tax Notes Fed. 2207 (Mar. 18, 2024):

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April 13, 2024 in Scholarship, Tax, Tax Analysts, Tax Daily, Tax Scholarship | Permalink

Friday, April 12, 2024

Weekly SSRN Tax Article Review And Roundup: Saito Reviews Kern’s Progressive Taxation For The World

This week, Blaine Saito (Ohio State; Google Scholar) reviews a new work by Adam Kern (NYU), Progressive Taxation for the World, 74 Tax L. Rev. __ (2024): 

Blaine saito

A growing set of voices in tax scholarship are seeking to reemphasize notions of justice. But one of the areas where many of these discussions have traditionally faltered is in the area of international taxation. Many commentators argue that justice really can only happen within a given state and society, not across the world. In his piece, Progressive Taxation for the World, Adam Kern seeks to rebut these ideas, showing that when countries act in the international tax arena to grab more taxing rights for themselves, the justice claims of the poorest countries are actually heightened. He also urges for notions of international taxation where needs of people are given a greater place than economic contributions of a given jurisdiction. The piece forces us to grapple with why we continue then to ignore such claims in our thinking and policymaking.

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April 12, 2024 in Blaine Saito, Scholarship, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Newton Presents Inclusive Prosperity Today At San Diego

Deanna S. Newton (Pepperdine) presents Inclusive Prosperity at San Diego today as part of its Tax Law Speaker Series hosted by Michelle Layser:

Deanna NewtonGentrification affects almost every American city to varying degrees, involving different parties with different interests. While positive changes are associated with gentrification, low-income individuals are often displaced from their communities due to increased rent costs and property values. Throughout our nation’s history, the federal government has offered tax incentives to those who invest in low-income areas that have historically suffered disinvestment. These tax incentives encourage investment by providing tax benefits and minimal investment constraints. However, because investors are not required to tailor their investments to meet the needs of communities, the unintended consequence of these programs is that residents do not typically benefit and are instead displaced from their communities. There is little in the current literature that proposes how economic development tax incentives should be practically designed to ensure community members are not displaced.

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April 12, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Next Week’s Tax Workshops

Next Week's Tax Workshops - twitterTuesday, April 16: Goldburn P. Maynard, Jr. (Indiana-Kelley; Google Scholar) will present Penalizing Precarity, 123 Mich. L. Rev __ (2024) (with Clinton Wallace (South Carolina; Google Scholar)) as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Emily Satterthwaite and Dayanand Manoli

Friday, April 19: Alex Raskolnikov (Columbia) will present Equality Plus Equity: Law and Redistribution in a Capitalist Democracy as part of the Cornell Faculty Workshop.

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April 12, 2024 in Colloquia, Legal Education, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Cauble Presents Informal Tax Guidance’s Impact Today At Indiana

Emily Cauble (Wisconsin; Google Scholar) presents Informal Tax Guidance’s Impact at Indiana-Maurer today as part of its Tax Policy Colloquium hosted by Leandra Lederman:

Emily caubleThis Article presents the results of a new survey of 2191 U.S. adults designed to gain insight into the impact that statements in informal IRS guidance have on non-expert taxpayers. The results of the survey demonstrate that such statements (taken from actual guidance) are susceptible to interpretations that are inconsistent with actual tax law.

These results underscore the need for reforms that would mitigate the harms that follow when users interpret guidance inconsistently with tax law. In addition, while some of the participants’ misconceptions were predictable, others differed from what legal experts might anticipate. This finding suggests a potential role for studying how non-experts actually interpret guidance – to supplement analysis of technical measures of its readability and reliance on expert review.

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April 12, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Thursday, April 11, 2024

Mehrotra Presents The Rise And Fall Of The 1970s National VAT Today At Duke

Ajay K. Mehrotra (Northwestern; Google Scholar) presents Nixon’s VAT: Lawyers, Economists, and the Rise and Fall of the 1970s National Value-Added Tax to Fund Education at Duke today as part of its Tax Policy Seminar hosted by Larry Zelenak:

Ajay mehrotraNearly all developed countries and many in the developing world have some type of a broad-based, national consumption tax, frequently in the form of a value-added tax (VAT). These levies generate tremendous revenues that often underwrite expansive social-welfare spending, such as national healthcare, free education, and ample retirement savings – spending that mainly addresses economic inequality by promoting redistribution.

The United States is a glaring exception. While there are numerous U.S. subnational consumption taxes, in the form of state and local sales taxes, the federal government has consistently rejected broad-based national consumption taxes. Likewise, the United States has comparative low levels of direct social-welfare spending. This paper – which is part of a larger project exploring the question “why no VAT in the U.S.?” – examines the rise and fall of the 1970s national VAT aimed at funding education.

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April 11, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Wells: The Foreign Tax Credit Redux

Bret Wells (Houston; Google Scholar), The Foreign Tax Credit Redux, 26 Chap. L. Rev. 159 (2022):

Chapman law reviewIn the preamble to its 2022 final regulations, the Treasury Department provided multiple justifications for its amendments based on the historic policy goals of Section 901 and the manner that judicial case law has construed this provision. Yet, in fact, the amendments made by the 2022 final regulations deviate away from the historic policy goals of the U.S. foreign tax credit without any Congressional authorization for doing so. Moreover, these 2022 final regulations represent a strong repudiation of the Supreme Court’s own articulation of the Biddle doctrine in the PPL decision by attempting to formulate an interpretation of the Biddle doctrine that is inconsistent with the Supreme Court’s own interpretation of its own doctrine. The U.S. Treasury Department has forged a diametrically opposite policy approach in this era compared to the one that Congress chose to pursue in the circa 1918-1921 era when it enacted Section 901’s predecessor. 

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April 11, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink