Paul L. Caron
Dean




Wednesday, October 20, 2021

Gamage Presents Political Optionality And Current-Assessment Tax Reform Today At UC-Irvine

David Gamage (Indiana; Google Scholar) presents Tax Now or Tax Never: Political Optionality and the Case for Current-Assessment Tax Reform (with John Brooks (Georgetown; Google Scholar)) at UC-Irvine today as part of its Tax Policy Colloquium:

Gamage-davidThe U.S. income tax is broken. Due to the realization doctrine and taxpayers’ consequent ability to defer taxation of gains, taxpayers can easily minimize or avoid the taxation of investment income, a failure that is magnified many times over when considering the ultra-wealthy. As a result, this small group of taxpayers commands an enormous share of national wealth yet pays paltry taxes relative to the economic income their wealth produces—a predicament that this Article condemns as being economically, politically, and socially harmful.

The conventional view among tax law experts has assumed that the problems created by the realization doctrine can be fixed on the back end by adjusting the rules that govern taxation at the time of realization. Specifically, most tax scholars have favored reform proposals that would retain the realization doctrine, while aiming to impose taxes in a way that would erase or reduce the financial benefits of deferral. Examples include retrospective capital gains tax reforms, progressive consumption tax reforms, and more incremental reforms such as ending stepped-up basis.

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October 20, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Monday, October 18, 2021

Maag Presents The Next Stage Of The Child Tax Credit Today At Loyola-L.A.

Elaine Maag (Tax Policy Center) presents Issues In Child Benefit Administration In The United States: Imagining the Next Stage of the Child Tax Credit (with Samuel Hammond (Niskanen Center)) at Loyola-L.A. today as part of its Tax Policy Colloquium:

Maag-elaineThe American Rescue Plan Act of 2021 (ARP) expanded the Child Tax Credit (CTC) for one year and delivered it as a monthly benefit to the vast majority of recipients. Whether the credit will retain its current form, revert to its previous form, or take on a new form altogether is unclear. Even if the credit is extended, it is unlikely to be extended permanently and there remains the possibility that if will continue to evolve as discussions around providing a robust child benefit continue. A robust child benefit could provide a minimum source of support to all or most families with children which would mean that fewer children would grow up in poverty and would be harmed by temporary income drops. We compare how a tax credit such as the Child Tax Credit (CTC) administered by the Internal Revenue Service (IRS) or a universal child allowance administered by the Social Security Administration (SSA) could be structured to best meet the needs of families with children. Tax credits, in general, have been the more popular tool of choice for both Democrats and Republicans to redistribute income in recent years (Faricy 2015)–including the temporary expansion of the Child Tax Credit (CTC).

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October 18, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Friday, October 15, 2021

Next Week’s Tax Workshops

Monday, October 18: Elaine Maag (Tax Policy Center) presents Issues In Child Benefit Administration In The United States: Imagining The Next Stage of The Child Tax Credit (with Samuel Hammond (Niskanen Center)) as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here.

Tuesday, October 19: Stephanie Hoffer (Indiana-Indianapolis; Google Scholar) presents Tax Legislation in Crises as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle.

Wednesday, October 20: David Gamage (Indiana; Google Scholar) presents Tax Now or Tax Never: Political Optionality and the Case for Current-Assessment Tax Reform (with John Brooks (Georgetown; Google Scholar)) as part of the UC-Irvine Tax Policy Colloquium. If you would like to attend, please email taxpolicy@law.uci.edu

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October 15, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Thursday, October 14, 2021

Hines Presents Evaluating Tax Harmonization Today At Georgetown

James Hines (Michigan; Google Scholar) presents Evaluating Tax Harmonization at Georgetown today as part of the OMG Transatlantic Tax Talks Series (OMG = Oxford-Michigan-MIT-Munich-Georgetown):

James-HinesTax harmonization can address downward rate pressure due to tax competition, but does so by imposing a common rate that may not suit all governments.  A second-order Taylor approximation yields the simple rule that tax rate harmonization advances collective government objectives only if tax competition reduces average tax rates by more than the standard deviation of observed tax rates.  Consequently, any objective-maximizing harmonized tax rate must exceed the sum of the observed average tax rate and the standard deviation of tax rates.  In 2020 the standard deviation of world corporate tax rates weighted by GDP was 4.5%, and the mean corporate tax rate 25.9%, so if competition sufficiently depresses tax rates then governments may find it attractive to harmonize at a corporate tax rate of 30.4% or higher. The minimum tax rate that most effectively advances collective objectives equals the average effect of tax competition plus the average tax rate in affected countries.  Hence there are dominated regions: in the 2020 data, there is no degree of tax competition for which a world minimum corporate tax rate between 4% and 27% would be consistent with maximizing collective objectives.

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October 14, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Hoffer Presents Tax Legislation In Crises Today At Indiana

Stephanie Hoffer (Indiana-Indianapolis; Google Scholar) presents Tax Legislation in Crises at Indiana-Bloomington today as part of its Tax Policy Colloquium hosted by Leandra Lederman:

Stpehanie-hoffer

Introduction
Congress, during crises, uses tax law as an instrument of mitigation. A legislature convened in crisis, though, faces unusual informational, political, and time constraints. Tax legislation tends toward complexity. Passing complex legislation under unusual constraints likely precludes thorough contemporaneous consideration of the distributional or other policy effects of the legislation on a diverse group of stakeholders. Perhaps as a consequence, tax legislation passed in times of crises typically builds on prior crisis legislation and contains many recurring provisions. 

This essay examines recurring provisions in crisis-motivated tax and presents preliminary observations on a study of tax legislation passed in response to national crises during the years the 2000 – 2020. The study period includes the September 11 terrorist attacks, hurricanes Katrina, Rita, and Wilma, the 2008 housing market collapse, the Great Recession, and the COVID pandemic. The study examines which kinds of provisions recur under which circumstances, for whose benefit, and at what cost.

The broader work of which this essay is a part addresses three hypotheses. First, crisis tax legislation is formulaic, generally including a number of provisions drawn from prior tax crisis bills. Second, subsequent crisis tax legislation tends to expand the scope of provisions repeated from earlier crisis tax legislation. Third, among recurring provisions, privately-directed outlays via tax expenditure will outweigh Congressionally-directed outlays.

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October 14, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Tuesday, October 12, 2021

Blouin Presents Does Tax Planning Affect Organizational Complexity: Evidence From Check-the-Box Today At NYU

Jennifer Blouin (Penn) presents Does Tax Planning Affect Organizational Complexity: Evidence from Check-the-Box (with Linda Krull (Oregon; Google Scholar)) at NYU today as part of its Tax Policy and Public Finance Colloquium hosted by Dan Shaviro:

Blouin (2021)This study investigates the effect of the 1997 check-the-box regulations on the current effective income tax rates of U.S. multinational firms. Following the empirical methodology developed in Dyreng and Lindsey (2009), we measure the effect that the change in tax law has on the average worldwide, U.S., and foreign taxes paid on worldwide, federal and foreign pretax book income for a large sample of U.S. multinational firms. We find that on average U.S. multinational firms’ worldwide tax rates declined by 7.5% in the post-1996 period. Further, we find that the effect of the regulations was greater on U.S. multinational firms’ average foreign tax rates as compared to their average U.S. foreign tax rates. Our results also suggest that the effect is concentrated in the U.S. multinational firms that had a greater change in their ownership structures and a greater change in the balance of their intercompany payments in the post-1996 period.  

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October 12, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Maag Presents Imagining The Next Stage Of The Child Tax Credit Today At Georgetown

Elaine Maag (Tax Policy Center) presents Imagining the Next Stage of the Child Tax Credit (with Samuel Hammond (Niskanen Center)) at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Brian Galle:

Maag-elaineThe American Rescue Plan Act of 2021 (ARP) expanded the Child Tax Credit (CTC) for one year and delivered it as a monthly benefit to the vast majority of recipients. Whether the credit will retain its current form, revert to its previous form, or take on a new form altogether is unclear. Even if the credit is extended, it is unlikely to be extended permanently and there remains the possibility that if will continue to evolve as discussions around providing a robust child benefit continue. A robust child benefit could provide a minimum source of support to all or most families with children which would mean that fewer children would grow up in poverty and would be harmed by temporary income drops. We compare how a tax credit such as the Child Tax Credit (CTC) administered by the Internal Revenue Service (IRS) or a universal child allowance administered by the Social Security Administration (SSA) could be structured to best meet the needs of families with children. Tax credits, in general, have been the more popular tool of choice for both Democrats and Republicans to redistribute income in recent years (Faricy 2015)–including the temporary expansion of the Child Tax Credit (CTC).

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October 12, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Listokin Presents Monetary Finance Today At Boston College

Yair Listokin (Yale; Google Scholar) presents Monetary Finance (with Brian Galle (Georgetown; Google Scholar)) (reviewed by David Elkins (Netanya) here) at Boston College today as part of its Tax Policy Collaborative hosted by Jim Repetti, Diane Ring, and Shu Yi Oei:

Listokin_yair_yjl6Conventional economic wisdom holds that governments cannot pay their bills by printing money. Running the printing press—or, at modern central banks, tapping a few keys to create electronic funds—causes inflation, and inflation can destroy economies. Yet as it turns out, since 2008 developed countries throughout the world have in effect printed trillions of dollars’ worth of new money without any real hint of inflation. In the United States, for example, this “monetary finance” has amounted to ⅓ of all deficit spending over the last decade.

The power of central banks to finance government at this scale should transform how we think about the fiscal state, our system of taxing and spending. Yet because this phenomenon is new, runs contrary to decades of theory, and is not yet fully understood, little scholarship yet grapples with how governments should use monetary finance. Most nations’ basic architectures for revenue and spending decisions assume that taxes and government borrowing are the primary sources of government finance. What should happen to fundamental legal rules, such as balanced-budget requirements, debt ceilings, or the tax legislative process, when central banks are also key players in financing national expenditures? And how should the structure of central banks change to reflect this new power, which could turn into a dangerous temptation?

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October 12, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Monday, October 11, 2021

Devereux Presents Taxing Profit In The Market Country Today At Loyola-L.A.

Michael Devereux (Oxford; Google Scholar) presents Taxing Profit in a Global Economy and Comparing Proposals to Tax Some Profit in the Market Country (with Richard Collier (Oxford) & John Vella (Oxford)) at Loyola-L.A. today as part of its Tax Policy Colloquium:

Michael-devereuxTaxing Profit in a Global Economy
This book undertakes a fundamental review of the existing international system of taxing business profit. It steps back from the current political debates on how to combat profit shifting and how taxing rights over the profits of the digitalized economy should be allocated. Instead, it starts from first principles to ask how we should evaluate a tax on business profit—and whether there is any good rationale for such a tax in the first place. It then goes on to evaluate the existing system and a number of alternatives that have been proposed. It argues that the existing system is fundamentally flawed, and that there is a need for radical reform. The key conclusion from the analysis is that there would be significant gains from a reform that moved the system towards taxing profit in the country in which a business made its sales to third parties. That conclusion informs two proposals that are put forward in detail and evaluated: the Residual Profit Allocation by Income (RPAI) and the Destination-based Cash Flow Tax (DBCFT). 

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October 11, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Friday, October 8, 2021

Next Week’s Tax Workshops

Monday, October 11: Michael Devereux (Oxford; Google Scholar) presents Taxing Profit in the Market Country (with Richard Collier & John Vella (Oxford)) virtually as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday, October 12: Elaine Maag (Tax Policy Center) presents Imagining the Next Stage of the Child Tax Credit (with Samuel Hammond (Niskanen Center)) virtually as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle.

Tuesday, October 12: Jennifer Blouin (Penn) presents Does Tax Planning Affect Organizational Complexity: Evidence from Check-the-Box (with Linda Krull (Oregon; Google Scholar)) as part of the NYU Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Dan Shaviro

Tuesday, October 12: Yair Listokin (Yale; Google Scholar) presents Monetary Finance (with Brian Galle (Georgetown; Google Scholar)) virtually as part of the Boston College Tax Policy Collaborative. If you would like to attend, please contact James RepettiDiane Ring, or Shu Yi Oei.

Thursday, October 14: Stephanie Hoffer (Indiana-McKinney; Google Scholar) presents Tax Legislation in Crises virtually as part of the Indiana-Maurer Tax Policy Colloquium. If you would like to attend, please register here

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October 8, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Tuesday, October 5, 2021

Layser Presents A Spatial Analysis Of Place-Based Tax Incentives Today At Georgetown

Michelle D. Layser (Illinois; Google Scholar) presents Subsidizing Gentrification: A Spatial Analysis of Place-Based Tax Incentives, 11 UC Irvine L. Rev. __ (2021), virtually at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Brian Galle:

Michelle-layserPlace-based tax incentives, such as the New Markets Tax Credit (NMTC) and Opportunity Zones incentives, are often used to promote investment in low-income neighborhoods. However, not all low-income neighborhoods have an equal need for investment subsidies. Subsidies for investment in already gentrifying neighborhoods, for example, may reflect inefficient inframarginal investment, and they may lead to inequitable outcomes. Critics fear that when gentrifying neighborhoods are eligible for tax incentives, they will draw investment away from the neighborhoods that need it most. However, few studies have provided empirical analysis to assess whether these concerns have merit. Through a novel geospatial analysis of the location patterns of tax-subsidized projects, this Article provides new evidence that critics’ concerns are justified.

This Article analyzes 15 years of NMTC data to explore the location patterns of tax-subsidized projects in 20 U.S. cities.

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October 5, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Hayashi Presents Dynamic Property Taxes And Racial Gentrification Today At UC-Hastings

Andrew T. Hayashi (Virginia; Google Scholar) presents Dynamic Property Taxes And Racial Gentrification, 96 Notre Dame L. Rev. 1517 (2021), virtually at UC-Hastings today as part of its 2021 Tax Speaker Series hosted by Heather Field and Manoj Viswanathan:

Hayashi_andrew_Many jurisdictions determine real property taxes based on a combination of current market values and the recent history of market values, introducing a dynamic aspect to property taxes. By design, homes in rapidly appreciating neighborhoods enjoy lower tax rates than homes in other areas. Since growth in home prices is correlated with — and may be caused by — changing neighborhood demographics, dynamic property taxes will generally have racially disparate impacts. These impacts may explain why minority-owned homes tend to be taxed at higher rates. Moreover, the dynamic features of local property taxes may subsidize gentrification and racially discriminatory preferences.

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October 5, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Monday, October 4, 2021

Fleming Presents The Decline Of Deferral In U.S. International Tax Planning Today At Vienna

Cliff Fleming (BYU; Google Scholar) presents The Decline of Deferral in U.S. International Tax Planning virtually at Vienna University of Economics and Business today:

JCliftonFlemingPrior to the 2017 TCJA, international tax planning by U.S. multinationals concentrated heavily on deferring U.S. residual tax on income earned in low-tax foreign countries and on enhancing the deferral benefit through cross-crediting and aggressive transfer pricing. Post TCJA, deferral planning has been rendered largely vestigial by the Section 245A dividends received deduction, the Section 965 transition tax, and the GILTI regime. Now international tax planning by U.S. multinationals focuses on maximizing the benefit of the low GILTI rate, cross-crediting within the GILTI foreign tax credit basket, minimizing Subpart F income, and shifting income from high-taxed foreign subsidiaries to low-taxed foreign subsidiaries. Aggressive transfer pricing remains an important tool.

October 4, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Friday, October 1, 2021

Next Week's Virtual Tax Workshops

Tuesday, October 5: Michelle D. Layser (Illinois; Google Scholar) presents Subsidizing Gentrification: A Spatial Analysis of Place-Based Tax Incentives, 11 UC Irvine L. Rev. __ (2021), virtually as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle.

Tuesday, October 5: Andrew T. Hayashi (Virginia; Google Scholar) presents Dynamic Property Taxes And Racial Gentrification, 96 Notre Dame L. Rev. 1517 (2021), virtually as part of the UC-Hastings Center on Tax Law 2021 Tax Speaker Series. If you would like to attend, please email tax@uchastings.edu

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October 1, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Wilking Presents Does It Matter Who Remits? Evidence From U.S. States’ Voluntary Collection Agreements Today At Florida

Eleanor Wilking (Cornell) presents Does It Matter Who Remits? Evidence from U.S. States’ Voluntary Collection Agreements (with Yeliz Kaçamak (Boglaziçi University; Google Scholar) & Tejaswi Velayudhan (UC-Irvine; Google Scholar)) virtually at Florida today as part of its Tax Policy Colloquium hosted by David Hasen.

Wilking (2021)In South Dakota v. Wayfair (2018), the Supreme Court empowered states to require remote sellers to remit sales taxes, thereby eliminating a persistent difference in the tax treatment of online and brick and mortar commerce. Despite the attention this decision received, we know little about how shifting the responsibility to remit will affect consumption or the tax system. To remedy this, we use states’ staggered adoption of Voluntary Collection Agreements (VCAs), which committed large online retailers to remit sales taxes prior to Wayfair. We find that while retailer remittance stemmed sales tax base erosion, the effective tax increase arising from greater compliance was almost fully passed through to consumers via higher tax-inclusive prices. Among consumers, we find that wealthier households bore more of the tax burden after the policy, suggesting that closing this evasion channel was distributionally neutral, or even modestly progressive.

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October 1, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Bird-Pollan Presents Taxing The Ivory Tower Today At Boston College

Jennifer Bird-Pollan (Kentucky; Google Scholar) presents Taxing the Ivory Tower: Evaluating the Excise Tax on University Endowments virtually at Boston College today as part of its Tax Policy Collaborative hosted by James Repetti, Diane Ring, and Shu Yi Oei:

Jennifer-bird-pollan

The Tax Cuts and Jobs Act of 2017 introduced the first ever excise tax imposed on the investment income of university endowments. While it is a relatively small tax, this new law is a first step towards the exploration of taxing non-profit entities on the vast sums of wealth they hold in their endowments. In this Essay I take the new tax as a starting place for investigating the justification for tax exemption for universities and thinking through the consequences of changing our approach, both in the form of the new excise tax and possible alternatives. There remain reasons to be skeptical both about the design of the current tax and its ability to withstand the political efforts of the powerful set of universities who will be subject to it. Nonetheless, this new tax opens the door to a discussion of whether it is time to treat universities’ endowments more like the private equity funds they increasingly resemble.

Much of the attention paid to the so-called Tax Cuts and Jobs Act (TCJA) focused on the significant cut in the tax rate assessed to corporations, the creation of a deduction for non-corporate business income under the new § 199A, the elimination of a variety of tax benefits aimed at relatively lower income taxpayers, and the changes to the international tax regime. However, one change to the tax code created under this bill focused in another direction entirely, attempting, for the first time, to tax university endowments.

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October 1, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Wednesday, September 29, 2021

Huang, Peavey & Kaercher Present Capital Gains And Transfer Tax Policy In The Build Back Better Act Today At UC-Irvine

Chye-Ching Huang, Tabetha Peavey & Michael Kaercher (NYU Tax Law Center) present Capital Gains and Transfer Tax Policy in the Build Back Better Act virtually today at UC-Irvine as part of its Tax Policy Colloquium:

UCI_Law_This session of the colloquium will discuss current administration and Congressional proposals to increase the capital gains rate, replace the step up in basis at death with taxing gains at death or reintroducing a carryover basis rule, and address shortcomings in the current estate and gift tax regime. We will also discuss the NYU Tax Law Center, the motivation behind its creation, and its role in the tax policy world and tax legislative process. 

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September 29, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Tuesday, September 28, 2021

Hemel Presents Law And The New Dynamic Public Finance Today At NYU

Daniel Hemel (Chicago; Google Scholar) presents Law and the New Dynamic Public Finance virtually at NYU today as part of its Tax Policy and Public Finance Colloquium hosted by Daniel Shaviro:

Hemel_danielOver the last two decades, a new movement in academic economics has challenged conventional wisdoms in optimal tax theory and generated fresh insights for real-world tax policy. Known as “the new dynamic public finance,” this movement has altered the way that economists think about labor income taxation, capital taxation, and the credibility of tax policy over time. Along the way, the NDPF literature has identified new justifications for previously perplexing features of the existing tax-and-transfer system and has called other elements of the status quo into serious question.

Mainstream economics has embraced the new dynamic public finance revolution. All the top peer-reviewed economics journals publish NDPF papers. Undergraduate public finance textbooks cover basic NDPF concepts. But legal scholars—including scholars of tax law—have largely ignored the emergence of NDPF. One notable exception is Daniel Shaviro, whose 2007 article “Beyond the Pro-Consumption Tax Consensus” highlighted NDPF’s implications for income-averaging proposals and the choice between income and consumption tax bases.3 Since then, though, only seven law review articles in the Westlaw database have even mentioned “the new dynamic public finance,” and none has sought to take stock of NDPF’s wide-ranging implications for legal analysis.

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September 28, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Hoopes Presents Tax Boycotts Today At Georgetown

Jeff Hoopes (North Carolina; Google Scholar) presents Tax Boycotts (with H. Scott Asay (Iowa; Google Scholar), Jacob Thorndock (BYU; Google Scholar) & Jaron Wilde (Iowa; Google Scholar)) virtually at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Brian Galle:

Jeff-hoopesTo what extent do consumers boycott in response to corporate tax planning? Anecdotes suggest consumer boycotts are a meaningful deterrent to tax planning, but empirical evidence on their frequency and impact is lacking. We undertake a comprehensive study to examine how consumers’ purchase behavior relates to corporate tax planning. First, we survey a representative sample of U.S. consumers and find that more than a third of survey participants report having boycotted a firm, but zero report having done so for taxes. Next, we use a granular dataset of nationwide Nielsen weekly purchase transactions to analyze consumer purchase behavior around corporate tax planning news events. Across a battery of tests, we find little evidence of changes in actual consumer purchase behavior in response to tax news.

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September 28, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Goldin Presents Whose Child Is This? Improving Child-Claiming Rules In Safety Net Programs Today At UC-Hastings

Jacob Goldin (Stanford; Google Scholar) presents Whose Child is This? Improving Child-Claiming Rules in Safety Net Programs (with Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar)) virtually at UC-Hastings today as part of its 2021 Tax Speaker Series hosted by Heather Field and Manoj Viswanathan:

Goldin (2021)To address the staggering problem of child poverty in the United States, Congress may soon enact a child allowance akin to those in other high-income countries. As lawmakers debate doing so, they must consider the design of rules that determine how benefits are distributed. Among the more important of these are “child-claiming” rules. These rules determine which adults can receive benefits for which children, driving how well a program helps recipients and satisfies public goals.

This Article critically assesses the design of child-claiming rules for safety net programs, using as case studies the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). It considers how best to design child-claiming rules to achieve specific program goals, the foremost of which is supporting children’s well-being. This analysis illustrates that no single rule regime dominates for any given goal or goals. Rather, policymakers compromise between important objectives such as channeling benefits to children’s caregivers and providing flexibility to claimants’ households. Informed by a principle-driven framework, the Article considers how best to navigate these difficult tradeoffs and proposes specific child-claiming rules under several different benefit structures.

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September 28, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Mayer Presents What Is Caesar's, What Is God's: Fundamental Public Policy For Churches Today At San Diego

Lloyd Hitoshi Mayer (Notre Dame; Google Scholar) presents What is Caesar's, What is God's: Fundamental Public Policy for Churches, 44 Harv. J.L. & Pub. Pol'y 145 (2021), virtually at San Diego today as part of its Tax Law Speaker Series co-hosted with San Diego's Institute for Law and Religion:

Lloyd-mayerBob Jones University v. United States is a highly debated Supreme Court decision, both regarding whether it was correct and what exactly it stands for, and a rarely applied one. Its recognition of a “fundamental public policy doctrine” that could cause an otherwise tax-exempt organization to lose its favorable federal tax status remains highly controversial, although the Court has shown no inclination to revisit the case, and Congress has shown no desire to change the underlying statutes to alter the case’s result. That lack of action may be in part because the IRS applies the decision in relatively rare and narrow circumstances.

The mention of the decision during oral argument in Obergefell v. Hodges raised the specter of more vigorous and broader application of the doctrine, however. It renewed debate about what public policies other than avoiding racial discrimination in education might qualify as fundamental and also whether and to what extent the doctrine should apply to churches, as opposed to the religious schools involved in the original case. The IRS has taken the position that churches are no different than any other tax-exempt organizations in this context, although it has only denied or revoked the tax-exempt status of a handful of churches based on this doctrine.

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September 28, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Monday, September 27, 2021

Kleiman Presents Impoverishment By Taxation At UC-Irvine

Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar) presented Impoverishment by Taxation, 170 U. Pa. L. Rev. ___ (2022), virtually at UC-Irvine last Thursday as part of its Intellectual Life Workshop Series:

6606Viewed in the aggregate, the U.S. fiscal system is progressive, reduces inequality, and cuts poverty. The system improves on market outcomes by transferring income from rich to poor. Yet this bird’s eye view rings hollow on the ground, where millions of low-income taxpayers across the United States are made poor or poorer by paying their state and federal taxes. In truth, while the U.S. fiscal system may be broadly equalizing and poverty reducing, for many struggling households, it is impoverishing.

This Article offers a new way to measure taxation of low-income households in the United States, presenting a concept called fiscal impoverishment. Taxpayers are fiscally impoverished when they are made poor or poorer by paying state and federal taxes, after accounting for the offsetting cash or near-cash public benefits they receive. Distinct from the aggregate and anonymous measures by which we typically assess our tax and transfer system, fiscal impoverishment is dynamic and individualized. It highlights individual human dignity and implicates the economic responsibilities of the state vis-à-vis low-income taxpayers.

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September 27, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Kades Presents A New Feudalism: Selfish Genes, Great Wealth And The Rise Of The Dynastic Family Trust Today At Loyola-L.A.

Eric Kades (William & Mary; Google Scholar) presents A New Feudalism: Selfish Genes, Great Wealth and the Rise of the Dynastic Family Trust virtually today at Loyola-L.A. as part of its Tax Policy Colloquium.

KadesToday’s record levels of economic inequality are infecting our future as the top 0.01% bequest vast wealth to their descendants. With the death of the Rule Against Perpetuities (RAP), this inequality has the potential to harden social class lines not just for a generation or two but forever. Although it may sound implausible, interviews with estate lawyers serving very high net worth clients reveal that some of the wealthiest tier of testators are already exploiting the RAP’s elimination, along with a tax loophole, to establish dynasty trusts that will financially empower their bloodline as long as it continues.

Evolutionary biologists will not be surprised by this finding. Recent work in their field shows a universal and powerful human drive for high status descendants — a drive for “quality” progeny so powerful that it appears to trump the usual desire to maximize quantity of offspring. Coupled with the long history of dynastic family wealth in England, this science suggests that today’s wealthiest testators will utilize powerful modern legal institutions (e.g. well-developed laws of contract and trust; deep and efficient capital markets) to forge a new sort of trust that I dub a Dynastic Family Trust (DFT). These DFTs will be larded with innovative provisions leveraging a founder’s wealth to maximize descendants’ status for generation after generation.

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September 27, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Friday, September 24, 2021

Next Week's Virtual Tax Workshops

Monday, September 27: Eric Kades (William & Mary; Google Scholar) will present A New Feudalism: Selfish Genes, Great Wealth and the Rise of the Dynastic Family Trust virtually at Loyola-L.A. as part of its Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday, September 28: Daniel Hemel (Chicago; Google Scholar) will present Law and the New Dynamic Public Finance virtually at NYU as part of its Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Daniel Shaviro.

Tuesday, September 28: Jacob Goldin (Stanford; Google Scholar) will present Whose Child is This? Improving Child-Claiming Rules in Safety Net Programs (with Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar)) virtually at UC-Hastings as part of its 2021 Tax Speaker Series. If you would like to attend, please contact Heather Field and Manoj Viswanathan.

Tuesday, September 28: Jeff Hoopes (North Carolina; Google Scholar) will present Tax Boycotts (with H. Scott Asay (Iowa Tippie College of Business; Google Scholar), Jacob Thorndock (BYU; Google Scholar) & Jaron Wilde (Iowa; Google Scholar)) virtually at Georgetown as part of its Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle

Wednesday, September 29: Chye-Ching Huang, Tabetha Peavey & Michael Kaercher (NYU Tax Law Center) will present Capital Gains and Transfer Tax Policy in the Build Back Better Act virtually at UC-Irvine as part of its Tax Policy Colloquium. If you would like to attend, please register here

Friday, October 1: Eleanor Wilking (Cornell) will present Does It Matter Who Remits? Evidence from U.S. States’ Voluntary Collection Agreements (with Yeliz Kaçamak (Boglaziçi University; Google Scholar) & Tejaswi Velayudhan (UC-Irvine; Google Scholar)) virtually at Florida as part of its Tax Policy Colloquium. If you would like to attend, please contact David Hasen

Friday, October 1: Jennifer Bird-Pollan (Kentucky; Google Scholar) will present Taxing the Ivory Tower: Evaluating the Excise Tax on University Endowments virtually at Boston College as part of its Tax Policy Collaborative. If you would like to attend, please contact James RepettiDiane Ring, or Shu Yi Oei

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September 24, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Thursday, September 23, 2021

Lipman Presents Tax Audits, Economics, And Racism Today At Indiana

Francine Lipman (UNLV; Google Scholar) presents Tax Audits, Economics, and Racism virtually at Indiana today as part of its Tax Policy Colloquium hosted by Leandra Lederman:

Francine-lipmanFunding and targeting IRS enforcement would not only pay for itself but would also provide enough tax revenue to finance remedies for debilitating social problems including ending homelessness, providing universally affordable quality childcare and rebuilding America’s infrastructure without any statutory tax law changes (Hanlon, 2019). Why has Congress moved in the opposite direction defunding the IRS causing reductions in enforcement over the last two decades from this economically sound and prudent move? Why is the IRS cutting back on tax enforcement of corporations and higher income taxpayers when the tax gap related to these taxpayers and the demonstrated return on these audits is much more significant than other audits? Why is the EITC which scholars have determined effectively pays for itself and contributes little to the tax gap excessively audited? Why are the only tax provisions categorized as improper payments tax provisions that disproportionately benefit households of color? Why are impoverished households of color effectively denied tax benefits with no meaningful recourse when wealthy white nonfilers owing billions of taxes aren’t even pursued? Why are poor households of color more likely to be targeted for audit than their white counterparts when more white households receive the EITC than households of color?

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September 23, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Wednesday, September 22, 2021

Mason & Knoll Present Unbundling Undue Burdens Today At UC-Irvine

Ruth Mason (Virginia; Google Scholar) & Michael Knoll (Penn) present Unbundling Undue Burdens virtually at UC-Irvine today as part of its Tax Policy Colloquium:

Mason-knollCriticizing dormant Commerce Clause doctrine for, among other reasons, involving arbitrary distinctions and inviting judicial legislation, jurists and commentators have advocated for its abandonment or severe curtailment. This Article shows that when dormant Commerce Clause cases are divided by the type of burden they impose on interstate commerce, the need for different approaches to different types of cases emerges. Unbundling the doctrine helps explain the Supreme Court’s various doctrinal approaches in the cases, making it less ad hoc and haphazard and more connected to its justifications, which lie in federalism and the need to preserve a smoothly functioning national market.

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September 22, 2021 in Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Davis Presents Tax Narratives: A Critical Tax Perspective On The Biden Tax Plan Today At Copenhagen

Tessa Davis (South Carolina) presents Tax Narratives: A Critical Tax Perspective on the Biden Tax Plan virtually at Copenhagen today as part of its Tax Colloquium:

DavisTax is storytelling. And the Biden Administration is elevating different narratives as it weaves its own story of the tax changes the country needs and how those changes will strengthen the fabric of American society.  As of August 2021, portions of the Administration’s proposals have become law.  Others face an uncertain path to enactment.  A rare bipartisan spirit emerged in the same month in the U.S. Senate’s passing of a significant infrastructure bill. But legislation to advance the Administration’s other goals—particularly tax changes and spending programs targeted toward benefiting low- and middle-income individuals and families—may be a harder lift. In “Tax Narratives: A Critical Tax Perspective on the Biden Tax Plan,” I situate the Administration’s proposals that aim to address childcare, healthcare, and education access within domestic and international contexts.

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September 22, 2021 in Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Tuesday, September 21, 2021

McCormack Presents The American Rescue Plan Act And Caregiving Today At UC-Hastings

Shannon Weeks McCormack (Washington) presents The American Rescue Plan Act and Caregiving: What Will (and Should) Come Next virtually at UC-Hastings today as part of its 2021 Tax Speaker Series hosted by Heather Field and Manoj Viswanathan:

Shannon-weeks-mccormackThe COVID-19 pandemic amplified and exemplified many of the inequities working parents have long faced in America, but which Congress has been historically reluctant to address in the Internal Revenue Code (the “Code”), and otherwise. I have chronicled this in a recently published Essay, Caregivers and Tax Reform: Before and After Snap Shots. Recently, however, Congress passed the American Rescue Plan Act (the “ARPA”), which provided a spate of temporary measures to benefit parents until (one can only hope) the dangers of the pandemic substantially subside. My current project seeks to place the relevant provisions of the ARPA in their historical context. While still in its infancy, in many ways this project will supplement (and I believe culminate) my previous work on the taxation of the family.

The ARPA has been considered by many to be a “monumental action” not only because of its fiscal impact (its price tag is $1.9 trillion dollars) but also because of the substantive moves it makes. As one commentator put it, “the American Rescue Plan has the potential to be the most effective social care package since the 1960s.” I agree. But such claims may obscure the historical mark a bit.

As someone who has studied the taxation of the family, including its history, the package of benefits provided to parents in the ARPA stunned me. 

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September 21, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Pepin Presents A Permanently Refundable Child And Dependent Care Credit Today At Georgetown

Gabrielle Pepin (Upjohn Institute; Google Scholar) presents How Would a Permanently Refundable Child and Dependent Care Credit Affect Eligibility, Benefits, and Incentives? virtually at Georgetown today as part of its Tax Law and Public Finance Workshop:

Gabrielle_Pepin_2The federal Child and Dependent Care Credit (CDCC) subsidizes child care costs for working families. Before 2021, the CDCC was nonrefundable, so only families with positive tax liability after other deductions benefited. I estimate how CDCC eligibility, benefits, and marginal tax rates would change if the credit were made permanently refundable, relative to 2020 CDCC parameters set to be restored in 2022. Under refundability, some 5 percent of single parents gain eligibility and receive on average over $1,000 annually. Eligibility increases are largest among Black and Hispanic households. Increases in marginal tax rates among moderate-income taxpayers are small.

Conclusion
In this paper, I show that making the CDCC permanently refundable would increase eligibility and benefits among low-income taxpayers, who do not tend to benefit from other child care subsidy programs, such as dependent care FSAs. Furthermore, refundability would lead to particularly large increases in eligibility among Black and Hispanic households, which are relatively unlikely to qualify for the nonrefundable CDCC. Turning to intensive margin labor supply incentives, refundability would decrease marginal tax rates with respect to income among very-low-income taxpayers. Moderate-income taxpayers would experience small increases in marginal tax rates with respect to income but decreases in marginal tax rates with respect to child care expenditures.

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September 21, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Monday, September 20, 2021

Book, Fogg & Olson Present Reducing Administrative Burdens To Protect Taxpayer Rights Today At Loyola-L.A.

Leslie Book (Villanova; Google Scholar), T. Keith Fogg (Harvard), & Nina Olson (Center for Taxpayer Rights) present Reducing Administrative Burdens to Protect Taxpayer Rights virtually today at Loyola-L.A. as part of its Tax Policy Colloquium:

Book-fogg-olsonThe tax system designed by Congress imposes significant administrative burdens on taxpayers. IRS decisions regarding how it administers tax laws can add to congressionally imposed burdens. The administrative burdens are consequential and hurt some people, especially lower- or moderate-income individual taxpayers, more than others. While the IRS strives to measure and reduce the time and money taxpayers spend to comply with their tax obligations, it does not consider the effect administrative burdens have on taxpayer rights, including the right to be informed, the right to pay no more than the correct amount of tax, and the right to a fair and just tax system.

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September 20, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Friday, September 17, 2021

Mason & Knoll Present Unbundling Undue Burdens Today At Florida

Ruth Mason (Virginia; Google Scholar) & Michael Knoll (Pennsylvania) present Unbundling Undue Burdens virtually today at Florida as part of its Tax Policy Colloquium hosted by David Hasen:

Mason-knollCriticizing dormant Commerce Clause doctrine for, among other reasons, involving arbitrary distinctions and inviting judicial legislation, jurists and commentators have advocated for its abandonment or severe curtailment. This Article shows that when dormant Commerce Clause cases are divided by the type of burden they impose on interstate commerce, the need for different approaches to different types of cases emerges. Unbundling the doctrine helps explain the Supreme Court’s various doctrinal approaches in the cases, making it less ad hoc and haphazard and more connected to its justifications, which lie in federalism and the need to preserve a smoothly functioning national market.

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September 17, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Kim Presents A New Framework For Digital Taxation Today At Boston College

Christine Kim (Utah; Google Scholar) presents A New Framework for Digital Taxation (with Reuven Avi-Yonah (Michigan; Google Scholar) & Karen Sam)) virtually at Boston College today as part of its Tax Policy Collaborative:

Christine-kimThe international tax regime has wide implications for business, trade, and the international political economy. Under current law, multinational enterprises do not pay their fair share of taxes to market countries where profits are generated because market countries are only allowed to tax companies with a physical presence there. Digital companies, like Google and Amazon, can operate entirely online, thereby avoiding market country taxes. Multinationals can also exploit existing tax rules by shifting their profits to low-tax jurisdictions, thereby avoiding taxes in the residence country where their headquarters are located.

Recently, a proposal to tackle these issues was announced, endorsed by more than 130 countries. This “Inclusive Framework” proposal sets forth two Pillars to reform the outdated international tax regimes by addressing digital taxation (Pillar One) and global minimum tax (Pillar Two). However, it is doubtful that the Inclusive Framework will reach a consensus, especially on Pillar One. As the details of Pillar One have become increasingly complex and degraded by political compromises and carve-outs, it risks being a framework without substance. Also, countries are unlikely to repeal an established tax instrument, Digital Services Taxes (DSTs), which is an adamant requirement of the United States in adopting Pillar One.

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September 17, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Next Week's Virtual Tax Workshops

Monday, September 20: Leslie Book (Villanova; Google Scholar), T. Keith Fogg (Harvard), & Nina Olson (Center for Taxpayer Rights) will present Reducing Administrative Burdens to Protect Taxpayer Rights virtually at Loyola as part of its Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday, September 21: Gabrielle Pepin (Upjohn Institute; Google Scholar) will present How Would a Permanently Refundable Child and Dependent Care Credit Affect Eligibility, Benefits, and Incentives? virtually at Georgetown as part of its Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle

Wednesday, September 22: Tessa Davis (South Carolina) will present Tax Narratives: A Critical Tax Perspective on the Biden Tax Plan virtually at Copenhagen as part of its Tax Colloquium Seminars. If you would like to attend, please register here

Wednesday, September 22: Ruth Mason (Virginia; Google Scholar) & Michael Knoll (Penn) will present Unbundling Undue Burdens virtually at UC-Irvine as part of its Tax Policy Colloquium. If you would like to attend, please contact gradtax@law.uci.edu

Thursday, September 23: Francine Lipman (UNLV; Google Scholar) will present Tax Audits, Economics, and Racism virtually at Indiana as part of its Tax Policy Colloquium. If you would like to attend, please contact Leandra Lederman

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September 17, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Wednesday, September 15, 2021

Christians Presents Tax Cooperation In An Unjust World Today At UC-Irvine

Allison Christians (McGill; Google Scholar) presents Tax Cooperation in an Unjust World virtually today at UC-Irvine as part of its Tax Policy Colloquium:

Tax Cooperation 2In this book [Tax Cooperation in an Unjust World (Oxford University Press Nov. 2021)], Professor Christians sets out to demonstrate the key role that the international tax system plays in achieving justice. To do so, we first establish that the international tax system currently allows states with great wealth to claim more than they are justifiably entitled to from the global economy. We then demonstrate that this status quo both facilitates and feeds off continued human suffering, and therefore violates even minimal conceptions of international distributive justice. Finally, we explain how this situation of ongoing injustice can be addressed through existing institutions and processes and show that a fairer international tax system could be achieved with incremental yet effective adaptation, that is, without requiring radical reform or a new world tax order.

In making these claims, the book connects theories about tax policy largely from the legal and economics literature to theories of international justice from philosophical literature. As with any interdisciplinary effort, doing so risks alienating both camps. We hope we have muted this risk by showing that foundational commitments of widely accepted conceptions of international justice are reflected in existing tax policy, even if norms and processes do not fully reflect those underlying principles.

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September 15, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Tuesday, September 14, 2021

Brooks & Gamage Present The Indirect Tax Canon, Apportionment, And Drafting A Constitutional Wealth Tax Today At NYU

John Brooks (Georgetown; Google Scholar) & David Gamage (Indiana; Google Scholar) present The Indirect Tax Canon, Apportionment, and Drafting a Constitutional Wealth Tax virtually today at NYU as part of its Tax Policy and Public Finance Colloquium hosted by Daniel Shaviro:

Brooks GamageThe Constitution requires that “direct taxes” be “apportioned”—that is, that the revenues collected from each State be in proportion to population. Based on this obscure provision, prior scholarship has debated whether unapportioned wealth tax or related accrual-income tax reforms should generally be held constitutional, unconstitutional, or whether specific proposals should be held constitutional and others unconstitutional.

This Article takes a different approach. Recognizing the real uncertainty about how the Supreme Court might ultimately decide, this Article explains how Congress can draft a reform to navigate through that uncertainty. Specifically, this Article explains how Congress can draft a wealth tax or accrual-income tax reform that should survive constitutional scrutiny regardless of how the Supreme Court might ultimately rule on the disputed constitutional questions.

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September 14, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Aslam & Shah Present Tec(h)tonic Shifts: Taxing The Digital Economy Today At Georgetown

Aqib Aslam (IMF) & Alpa Shah (IMF) present Tec(h)tonic Shifts: Taxing the 'Digital Economy' virtually today at Georgetown as part of its Tax Law and Public Finance Workshop Series hosted by Brian Galle:

Aslam-shahThe ever-increasing digitalization of businesses has accelerated the need to address the many shortcomings and unresolved issues within the international corporate income tax system. In particular, the customer or “user”—through their online activities—is now considered by many as being a critical driving force behind the value of digital services. Furthermore, the rapid growth of digital service providers over the last decade has made them an increasingly popular target for special taxes—similar to wealth and solidarity taxes—which can also help mobilize much-needed revenues in the wake of a crisis. This paper argues that a plausible conceptual case can be made to tax the value generated by users under the corporate income tax. 

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September 14, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Monday, September 13, 2021

Alfani Presents Economic Inequality In Preindustrial Times Today At Loyola-L.A.

Guido Alfani (Bocconi; Google Scholar) presents Economic Inequality in Preindustrial Times: Europe and Beyond virtually today at Loyola-L.A. as part of its Tax Policy Colloquium:

Guido_AlfaniRecent literature has reconstructed estimates of wealth and income inequality for a range of preindustrial, mostly European, societies covering medieval and early modern times, occasionally reaching back to antiquity and even prehistory. These estimates have radically improved our knowledge of distributive dynamics in the past. It now seems clear that in the period circa 1300–1800, inequality of both income and wealth grew almost monotonically almost everywhere in Europe, with the exception of the century-long phase of inequality decline triggered by the Black Death of 1347–52. 

Regarding the causes of inequality growth, recent literature ruled out economic growth as the main one. Other possible factors include population growth (also as mediated by inheritance systems) and especially regressive fiscal institutions (also as connected to the unequal distribution of political power). 

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September 13, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Elkins Presents A Scalar Conception Of Tax Residence For Individuals Today At NYU

David Elkins (Netanya, visiting NYU 2021-2022) presents A Scalar Conception of Tax Residence for Individuals at NYU today as part its Faculty Workshop Series:

David-elkinsResidence is one of the fundamental concepts in international taxation. As a rule, residents are taxed on their worldwide income while nonresidents are taxed only on their domestic-source income. The criteria for residence vary from country to country. Some countries look to physical presence. Other rely upon more obtuse concepts such as domicile, permanent home, ordinary residence, habitual abode, connections, or ties. Many countries use a variety of tests. Tax treaties typically employ a series of tie-breaking provisions to determine residency when each of the two signatories views an individual as a resident in accordance with its own domestic rules.

Despite the wide variety of tests for determining individual residence, all share a common underlying premise, namely that residence is a binary attribute. An individual either is or is not a resident. There are no shades of grey. An individual who barely satisfies the relevant test is classified as a resident, while an individual who just fails to do so is classified as a nonresident.

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September 13, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Friday, September 10, 2021

Next Week's Virtual Tax Workshops

Monday, September 13: Guido Alfani (Bocconi; Google Scholar) will present Economic Inequality in Preindustrial Times: Europe and Beyond virtually at Loyola as part of its Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday, September 14: John Brooks (Georgetown; Google Scholar) & David Gamage (Indiana; Google Scholar) will present The Indirect Tax Canon, Apportionment, and Drafting a Constitutional Wealth Tax virtually at NYU as part of its Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Daniel Shaviro

Wednesday, September 15: Allison Christians (McGill; Google Scholar) will present Tax Cooperation in an Unjust World virtually at UCI as part of its Tax Policy Colloquium. If you would like to attend, please contact taxpolicy@law.uci.edu

Friday, September 17: Christine Kim (Utah; Google Scholar) will present A New Framework for Digital Taxation (with Reuven Avi-Yonah (Michigan; Google Scholar) & Karen Sam) virtually at Boston College as part of its Tax Policy Collaborative. If you would like to attend, please contact lawevent@bc.edu

Friday, September 17: Ruth Mason (Virginia; Google Scholar) & Michael Knoll (Penn) will present Unbundling Undue Burdens virtually at Florida as part of its Tax Policy Colloquium. If you would like to attend, please contact Ruth McIlhenny

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September 10, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Thursday, September 9, 2021

Wallace Presents The Democracy Criterion For Taxation Virtually Today At Indiana

Clint Wallace (South Carolina; Google Scholar) presents The Democracy Criterion for Taxation virtually today as part of the Indiana Tax Policy Colloquium hosted by Leandra Lederman:

Wallace_clintonTax scholars generally focus on the normative criteria of equity and efficiency in evaluating and designing tax policies, with little regard for governing context. Political theorists often focus on the conditions that shape a democratic community and can help it to flourish, with little regard for taxation. At a time when scholars are increasingly recognizing that public finance—and thus, taxation—is critical to repairing and sustaining democracies around the world, this Article begins to bridge the gap between tax theory and democratic theory.

This Article offers an account of democracy as a central consideration in taxation. I propose a “democracy criterion,” which would join equity and efficiency as a normative framework for evaluating tax policy in the design of any tax system or tax policy change. The democracy criterion described here captures inputs that contribute to democratic legitimacy and outputs that contribute to democratic vitality. On the inputs side, the democracy criterion asks: is the process that produces a change in tax law or tax rules democratically legitimate? This Article draws on democratic theory to presents one conception of democratic legitimacy for taxation. On the outputs side, the democracy criterion asks: does a change in tax law or tax rules strengthen or undermine democratic governance? Again drawing on democratic theory, this Article identifies connective tissues where taxation might enhance democracy.

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September 9, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Wednesday, September 8, 2021

Oei Presents World Tax Policy In The World Tax Polity Today At Copenhagen

Shu-Yi Oei (Boston College; Google Scholar) presents World Tax Policy in the World Tax Polity? An Event History Analysis of OECD/G20 BEPS Inclusive Framework Membership virtually today as part of the Copenhagen Business School Tax Colloquium hosted by Yvette Lind.

Shuyi-oeiThe last decade has seen the emergence of a new global tax order characterized by increased multilateral consensus and cooperation. World polity theory appears to be an obvious theoretical fit for conceptualizing this new order, which has been spearheaded by the OECD and G20. But what are the pathways by which this new “world tax polity” has emerged? Using event history regression methods, this Article investigates this question by studying the case of the OECD/G20 BEPS Inclusive Framework, a multilateral framework that currently includes 140 member countries, including 96 non-OECD, non-G20 countries.

How did these countries come to join the BEPS Inclusive Framework? World polity theory posits that the new multilateral Inclusive Framework could have been driven by normative, coercive, or mimetic processes. Of these possibilities, my Article finds that Inclusive Framework membership seems to have proliferated through a combination of normative and coercion-based pathways. Specifically, acculturation through prior involvement in certain OECD tax initiatives and inclusion in contemporaneous European Union tax haven “listing” (naming and shaming) processes was associated with a significantly higher hazard of Framework membership. By contrast, imitation of other countries did not appear to be a significant pathway.

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September 8, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Friday, September 3, 2021

Next Week's Virtual Tax Workshop

Thursday, September 9: Clint Wallace (South Carolina; Google Scholar) will present The Democracy Criterion for Taxation virtually at Indiana as part of its Tax Policy Colloquium Series. If you would like to attend, please contact Leandra Lederman

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September 3, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Thursday, August 26, 2021

Choi Presents Beyond Purposivism In Tax Law Today At Indiana

Jonathan Choi (Minnesota; Google Scholar) presents Beyond Purposivism in Tax Law (video) virtually today as part of the Indiana Tax Policy Colloquium hosted by Leandra Lederman. 

ChoiConventional wisdom holds that purposivist theories of statutory interpretation solve the problem of tax shelters, because the shelters comply with the text but not the purpose of tax statutes. But although tax shelters claim benefits that exceed statutory purpose, so do many generally accepted tax strategies. Purpose alone cannot separate abusive tax shelters from ordinary tax planning.

This Article therefore proposes a new framework to go beyond purposivism in tax law, complementing purposivist techniques with pragmatism or formalism. Pragmatism applies normative judgments when statutory purposes run out; formalism applies rules, like canons of construction, that provide determinate answers when statutory purpose is ambiguous. Pragmatism generally leads to better results in any particular case, while formalism provides taxpayers certainty in planning legitimate transactions. 

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August 26, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Friday, August 20, 2021

Next Week's Virtual Tax Workshop

Thursday, August 26: Jonathan Choi (Minnesota) will present Beyond Purposivism in Tax Law virtually as part of the Maurer School of Law's Tax Policy Colloquium. If you would like to attend, please contact Leandra Lederman

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August 20, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Thursday, July 22, 2021

English Presents International Effective Minimum Taxation – OECD/G20 Pillar Two (“GloBE”) Today At The Indiana/Leeds Summer Zoom Tax Workshop Series

Joachim English (Universität Münster) will present International Effective Minimum Taxation – OECD/G20 Pillar Two (“GloBE”) virtually today as part of the Indiana/Leeds Summer Zoom Tax Workshop Series hosted by Leandra Lederman (Indiana) and Leopoldo Parada (Leeds):

Joachim-englishThe G20/OECD Inclusive Framework is currently deliberating an effective international minimum tax as Pillar Two of its work on the tax challenges arising from digitalization. Political agreement on the so-called Global Anti-Base Erosion Proposal (GloBE) is sought for summer 2021 and prospects currently look good, in particular due to its full endorsement by the Biden administration. This paper outlines the developments leading up to the October 2020 Blueprint on GloBE and provides an assessment of its policy rationale and of certain objections raised in public hearings and in literature. 

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July 22, 2021 in Scholarship, Tax, Tax Workshops | Permalink

Friday, July 16, 2021

Next Week's Virtual Tax Workshop

Thursday, July 22: Joachim English (Universität Münster) will present International Effective Minimum Taxation – OECD/G20 Pillar Two (“GloBE”) virtually as part of the Indiana/Leeds Summer Zoom Tax Workshop Series. If you would like to attend, please contact Leandra Lederman or Leopoldo Parada.

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July 16, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Báez Presents The UN Model Tax Convention On Automated Digital Services Today At The Indiana/Leeds Summer Zoom Tax Workshop Series

Andrés Báez (Universidad Carlos III de Madrid) presents Because Not Always B Comes After A: Critical Reflections on the new Article 12B of the UN Model Tax Convention on Automated Digital Services virtually today as part of the Indiana/Leeds Summer Zoom Tax Workshop Series hosted by Leandra Lederman (Indiana) and Leopoldo Parada (Leeds):

Baez-aProposals to try to meet the challenges of the digital economy through a more or less extensive system of withholding taxes at source are a not great novelty. However, in recent times, these proposals have gained new academic impetus in parallel with the work that, since 2013, and in line with the BEPS Plan, the Organisation for Economic Cooperation and Development (OECD) has been developing concerning taxation of the digitalized economy. 

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July 16, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Friday, July 9, 2021

Next Week's Virtual Tax Workshop

Friday, July 16: Andrés Báez (Universidad Carlos III de Madrid) will present Because Not Always B Comes After A: Critical Reflections on the new Article 12B of the UN Model Tax Convention on Automated Digital Services virtually as part of the Indiana/Leeds Summer Zoom Tax Workshop Series. If you would like to attend, please contact Leandra Lederman or Leopoldo Parada.

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July 9, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Shaviro Presents Economics, Law, And Politics Of Increased Taxation Of Multinationals Today At The Indiana/Leeds Summer Zoom Tax Workshop Series

Daniel Shaviro (NYU) presents The Economics, Law, and National Politics of Seeking Increased Taxation of Multinationals virtually today as part of the Indiana/Leeds Summer Zoom Tax Workshop Series hosted by Leandra Lederman (Indiana) and Leopoldo Parada (Leeds):

Daniel-shaviro-indiana-leedsIt seems like only yesterday that what one might call the “end of history” in corporate and international tax policy appeared to be at hand. Over time, global tax competition was driving down countries’ corporate income tax revenues, relative to their gross domestic products (GDPs). Statutory corporate tax rates were likewise moving downwards, with a predicted endpoint of zero that some experts favored reaching sooner, rather than later. Meanwhile, with regard to the taxation of multinational companies, the world was said to be marching inexorably towards the universal replacement of worldwide residence-based taxation with that which was purely territorial, or source-based. Proponents lauded this shift as both benign and inevitable, and tended not to emphasize the fact that existing, putatively territorial, systems tended in practice to be “hybrids” that retained significant elements of residence-based taxation of home companies’ foreign source income (FSI).

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July 9, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Wednesday, July 7, 2021

Blank Presents Presidential Tax Transparency Today At UC-Irvine

Joshua Blank (UC-Irvine; Google Scholar) presents Presidential Tax Transparency, 40 Yale L. & Pol'y Rev. __ (2021), virtually today at the UC-Irvine School of Law Intellectual Life Workshop.

Joshua-blankWhether the public should have access to the tax returns of the President of the United States, and those who seek the office, is the focus of acute attention and debate.  President Donald Trump’s refusal to disclose his tax returns throughout his campaigns and presidency has fueled multiple legislative public disclosure proposals.  In March 2021, the U.S. House of Representatives passed legislation as part of the For the People Act of 2021 that would require Presidents, Vice Presidents, and nominees to publicly disclose several years of their tax returns through the Federal Election Commission.  Dozens of state legislatures have considered similar requirements for candidates who seek to appear on state primary and general election ballots.  Proponents of these measures argue that public disclosure of tax returns could expose conflicts of interest, reveal the President’s and candidates’ annual tax liability and tax rates, and, most importantly, enable the public to observe whether the President or candidates have engaged in tax evasion, pursued tax shelters and other tax avoidance, and participated in audits or tax controversies with the IRS.

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July 7, 2021 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink