Paul L. Caron
Dean




Saturday, October 1, 2022

This Week's Ten Most Popular TaxProf Blog Posts

A Re-examination Of The Capital Gains Tax Preference

Robin Morgan (S.J.D. 2023, Harvard), Note, Flawed Foundations: A Re-examination of the Reason and Purpose Behind the Capital Gains Tax Preference, 18 N.Y.U. J.L. & Bus. 599 (2022):

NYU J of Law & BusinessThe favorable taxation of capital gains has seen extensive ex-post celebration and condemnation, but the ex-ante reason for its enactment has largely been forgotten. This Note, written one hundred years after the capital gains tax preference was first enacted in 1921, responds to this gap by re-examining legal history to ask two simple questions: why does the capital gains preference exist as a matter of law and what can be learned from why it was enacted? I find that Congress was presented with two options to address the problem of high tax rates on capital gains yielding surprisingly little revenue in the early 20th century. The first option was to adopt broader, foundational changes to the taxation of capital gains to make the tax harder to avoid, while the second was to simply enact a low, preferential tax rate that taxpayers would willingly pay. They chose the second option, and I present data from the IRS Statistics of Income to provide some empirical evidence that the lower rates did yield greater revenue. 

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October 1, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Friday, September 30, 2022

Weekly SSRN Tax Article Review And Roundup: Kim Reviews Falcão's Carbon Tax Policy And The EU Green Deal

This week, Young Ran (Christine) Kim (Cardozo; Google Scholar) reviews a new work by Tatiana Falcão (international tax consultant), Updating Carbon Tax Policy Is Crucial to the EU Green Deal, 103 Tax Notes Int'l 485 (July 26, 2021).

Kim

The 2022 Congress of the International Fiscal Association (IFA) was held in Berlin, Germany, earlier this month after the two virtual Congresses in 2020 and 2021. In this long-awaited in-person event, the OECD's tax head Pascal Saint-Amans, who led the base erosion and profit shifting (BEPS) project and brokered the two-pillar global tax deal, announced his departure. Although the successful implementation of the global tax deal is still uncertain, it is hard to deny that Saint-Amans has been at the center of the efforts to update the international tax system. Personally, I appreciate his making the international tax a more exciting and dynamic subject, not only because he led the BEPS project and the global tax deal but also because he contributed to establishing the automatic exchange of tax information systems and building the inclusive framework on BEPS. It is indeed the end of a chapter in the international tax discourse.

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September 30, 2022 in Christine Kim, Scholarship, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Tax Policy In The Biden Administration

Next Week’s Tax Workshops

Next Week's Tax Workshops - twitterMonday, October 3: Reuven Avi-Yonah (Michigan; Google Scholar) will present A New Framework For Taxing Cryptocurrencies (with Mohanad Salaimi (S.J.D. 2022, Michigan)) as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here.

Monday, October 3: Jeesoo Nam (USC; Google Scholar) will present Just Taxation of Crime as part of the San Diego Tax Law Speaker Series

Tuesday, October 4: Cliff Fleming (BYU; Google Scholar) will present Viewing the GILTI Rates Through a Tax Expenditure Lens (with Stephen Shay (Boston College; Google Scholar) & Robert Peroni (Texas)) at the Vienna University of Economics and Business.

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September 30, 2022 in Colloquia, Legal Education, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Thursday, September 29, 2022

Raskolnikov Presents Should Only The Richest Pay More In Taxes? Today At Columbia

Alex Raskolnikov (Columbia) presents Should Only the Richest Pay More? at Columbia today as part of its Faculty Workshop:

Alex_raskolnikov_0This paper challenges the leading academic, political, and cultural narrative supporting greater redistribution. The narrative holds that redistribution should come at the expense of a very restricted group of the highest earners: the one percent, the super-rich, the billionaire class. I argue that many reasons offered in support of this view also call for redistribution from a much broader group that includes the affluent—those with incomes in the ninetieth to ninety ninth percentiles of the distribution. Whether one looks at the recent trends in income concentration, wealth concentration, social mobility, economic growth, political polarization, or the rise of populism, the affluent are as great—and sometimes greater—contributors to these problems as those in the top one percent. Remarkably, contemporary legal and economic scholarship has ignored the affluent almost completely, greatly limiting the magnitude of possible economic transfers as well the forms that these transfers may take.

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September 29, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Inspector General: The IRS Uses Cloud Computing Services Without Adequate Security Controls, Putting Taxpayer Data At Risk

Treasury Inspector General for Tax Administration, Cloud Services Were Implemented Without Key Security Controls, Placing Taxpayer Data at Risk (No. 2022-20-052) (Sept. 27, 2022):

TIGTATo facilitate and guide its cloud security implementation efforts, the IRS developed its Cloud Security Reference Architecture in September 2019 and the Cybersecurity Cloud Operations Framework in November 2019. The IRS issued its updated Cloud Strategy and Cloud Security Internal Revenue Manual in March 2021 and September 2021, respectively.

By the end of Calendar Year 2020, the IRS had fully implemented 56 cloud services, 12 of which contained taxpayer data. The IRS deployed these cloud services without fully implemented security controls for protecting the data. ... [T]he IRS continued to accelerate cloud adoption without ensuring that important security controls designed to protect taxpayer data were in place in the cloud environment. ...

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September 29, 2022 in Advice for Erwin Chemerinsky, IRS News, Tax, Tax News | Permalink

The Code Section 267 Related Party Rules: When Do They Apply To Section 351 Transactions?

Doron Narotzki (Akron; Google Scholar) & Melanie McCoskey (Akron; Google Scholar), The Code Section 267 Related Party Rules: When Do They Apply to Section 351 Transactions?, 136 J. Tax'n __ (2022):

Code Section 351 states that property transferors do not recognize gain or loss when they have control of the corporation immediately after the exchange. If the control requirements are not met, any realized loss that would be allowed under Code Section 351 may be disallowed under the Code Section 267 related party rules. One question that has not been addressed clearly in any primary source of authority is the proper time for testing to determine whether the related party rules apply. This article attempts to provide a review of the relevant legislation and court cases in order to provide guidance on this issue.

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September 29, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

What Trump Gets Right About Harvard

Politico Magazine: What Trump Gets Right about Harvard, by Evan Mandery (CUNY; Google Scholar; Author, Poison Ivy: How Elite Colleges Divide Us (2022)):

Poison IvyClad in his trademark red sweater, Hall of Fame college basketball coach Bobby Knight introduced Republican presidential nominee Donald Trump to an enthusiastic audience of supporters in late September 2016. “I’ll tell you one thing for damn sure,” Knight bellowed. “I know how to win and he’s going to be the best winner we’ve had in a long time.”

Trump emerged to the theme from Rocky, praised Knight’s incredible winning record, and then launched into a diatribe about elite colleges and universities. Two months earlier, Hillary Clinton had proposed to make public college free for middle-class families. Trump would have none of that. “Universities get massive tax breaks for massive endowments,” Trump said, to boos and catcalls. “These huge multi-billion-dollar endowments are tax free,” he explained. “But too many of these universities don’t use the money to help with tuition and student debt. Instead, these universities use the money to pay their administrators or put donors’ names on buildings or just store the money, keep it, and invest it.” The chorus of boos loudened. “In fact, many universities spend more on private equity managers than on tuition programs.”

Trump’s persistent attacks on elites were a major component of his electoral strategy and remained a key part of his message during his presidency and subsequent exile. Condemning elites — particularly in higher education — has long been a part of the GOP playbook, but it’s even more key today. Last November, Republican Senate candidate J.D. Vance delivered a half-hour speech at the National Conservatism Conference titled, “The Universities are the Enemy.” Vance accused universities of pursuing “deceit and lies.” To applause, he said, “I think if any of us want to do the things that we want to do for our country and for the people who live in it, we have to honestly and aggressively attack the universities in this country.” Vance’s would-be Senate colleagues Josh Hawley — like Vance, a graduate of Yale Law School — and Ted Cruz — a graduate of Harvard — routinely attack elites and elite institutions.

To some extent, elite colleges are simply collateral damage in the culture war. Indeed, the thrust of Vance’s speech is about the need to break through the indoctrination of the liberal intelligentsia — via what he calls “red pilling,” a reference to The Matrix — where the “fundamental corruption” at the root of the system, as Vance put it, can’t be unseen once seen. “So much of what drives truth and knowledge, as we understand it in this country,” Vance said, “is fundamentally determined by, supported by and reinforced by the universities in this country.”

But that’s not the whole story. Another line of attack is about access. It’s about who gets to be part of the elite, and whether America has gotten a fair return on the massive investment that it has made in elite colleges. For, difficult as this might be for liberals to hear, almost everything Trump said to the crowd Bobby Knight had warmed up was true.

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September 29, 2022 in Book Club, Legal Education, Tax | Permalink

Wednesday, September 28, 2022

Adediran: Disclosures For Equity

Atinuke O. Adediran (Fordham; Google Scholar), Disclosures for Equity, 122 Colum. L. Rev. 865 (2022): 

Columbia Law ReviewThis Article addresses how to increase funding to nonprofit organizations that are led by minorities or serve communities of color and how to hold corporations and private foundations who make public commitments to fund these organizations accountable for those commitments. The Article makes two policy recommendations to address these problems, while engaging with Supreme Court jurisprudence on mandatory disclosures to ensure that the proposals are narrowly tailored to institutional donors and include an opt-out provision so as not to chill the constitutional protection of the freedom of association. The first is for charities to publicly disclose their institutional donors in Schedule B of Internal Revenue Service (IRS) Form 990. The second is to modify IRS Form 990 to include information on the race and ethnicity of top managers, boards of directors, and the communities an organization serves.

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September 28, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Nurturing The Baby Bond Proposal: How Tax Principles Can Close The Racial Wealth Gap In The United States

James T. Smith (J.D. 2022, Temple), Comment, Nurturing the Baby Bond Proposal: How Tax Principles Can Close the Racial Wealth Gap in the United States, 94 Temp. L. Rev. 147 (2021):

“Every day I’m trying to play catch-up,” said Kourtney McGowan—a Black mother from California who became unemployed after her company refused to accommodate her work schedule during the COVID-19 pandemic. McGowan noted that she could not “have [her] son in [her] office for eight hours every day,” and she had no reliable plan for childcare. She turned her eight-year-old son to therapy to address his anxieties stemming from the pandemic. “Raising Black boys is hard in itself . . . . I’m just trusting God,” said McGowan.

The United States of America is the wealthiest country in the world, but, paradoxically, it has the largest wealth gap in the world. The wealth gap in the United States is starkest between races—Black wealth per family has declined by approximately 50% since 1983, while White wealth per family has increased by 33%. Families, like the McGowans, are finding themselves in difficult positions where they are “going to have quite a bit less to leave to their children.” Black children are more likely to live in poverty than their White peers, which impacts not only their physical and mental health but also their ability to achieve economic mobility.

Congress has relied primarily on fiscal policy mechanisms to provide substantial economic stimulus to the public and private sectors of the U.S. economy through the Tax Cuts and Jobs Act (TCJA) and—in the face of a raging pandemic—through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). However, these policies have fallen short of erasing racial economic disparities; in some cases, the policies have increased these disparities.

In order to address the racial economic gap, scholars and researchers across the United States have promulgated the idea of a “baby bond.” Upon the birth of an American child, that child would be provided a trust fund, which would become accessible when the child becomes a young adult. Each child would receive varying amounts of funds that would correlate inversely with the net worth of the child’s household at the time of birth. U.S. Senator Cory Booker (D-NJ) and others have adopted this idea but rely on gross familial income to calculate the amount of each disbursement, as opposed to actual wealth. The baby bond solution is gaining traction within academia and policy spheres.

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September 28, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Dickerson Reviews Brown's The Whiteness Of Wealth

A. Mechele Dickerson (Texas), Shining a Bright Light on the Color of Wealth, 120 Mich. L. Rev. 1085 (2022) (reviewing Dorothy A. Brown (Georgetown; Google Scholar), The Whiteness of Wealth: How the Tax System Impoverishes Black Americans — And How We Can Fix It (2021)):

Michigan Law Review (2022)Professor Dorothy A. Brown boldly asserts in The Whiteness of Wealth: How the Tax System Impoverishes Black Americans — And How We Can Fix It  that “whiteness has consistently and continually played a serious role in wealth building” (p. 20). Using stories from her life and the lives of other Black taxpayers, Brown methodically exposes how the same tax laws and policies that help whites build intergenerational wealth impoverish Blacks. Although readers who lack a business or legal background may not grasp the intricate technicalities of the Internal Revenue Code sections that Brown dissects, that does not matter. The clarity of Brown’s writing, her storytelling, and vivid examples involving her parents (Miss Dottie and James) and other ordinary Black taxpayers convey complex points—think tax policy preferences for horizontal equity or the lock-in effect—with ease.

This Review examines Brown’s powerful assertion that tax policies build and protect intergenerational white wealth and exacerbate the racial wealth gap by subsidizing activities and personal choices that disproportionately benefit white taxpayers. Those stunned by the enormity of this racial wealth gap will be horrified to learn that tax policies were designed to create white wealth.

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September 28, 2022 in Book Club, Scholarship, Tax, Tax Scholarship | Permalink

Tuesday, September 27, 2022

Taub Presents No Income Taxation Until Basic Accommodations: Toward Tax Justice In America Today At NYU

Jennifer Taub (Western New England; Google Scholar) presents No Income Taxation Until Basic Accommodations: Toward Tax Justice in America at NYU today as part of its Tax Policy and Public Finance Colloquium hosted by Daniel Shaviro:

TaubTax reform proposals recently promoted by progressive policymakers and candidates for elected office have focused on increasing federal taxes assessed on and paid by large business enterprises and wealthy individuals. These types of recommendations are designed to achieve redistributive justice based policy goals and also wisely follow the changing direction of public sentiment. From a policy perspective, economic research suggests that this sort of tax-receipts driven redistribution is essential in order to stem –– and ideally reverse –– growing wealth and income inequality trends. As for popular sentiment, the timing is good as the American public was already stirred up in response to the 2017 Republican-championed tax cuts for corporations and the super wealthy. Now, post-pandemic, the American people are even more receptive than they were before to taxing perceived coronavirus profiteering by billionaires and transnational corporations. We can also see evidence of strong support for targeting tax increases on big business and well-off individuals in polling as well as recent responses to the Inflation Reduction Act, the August 2022 legislation that moves modestly in that direction including with a financial-statement based fifteen percent alternative minimum tax on corporations that have on average $1 billion or more in annual earnings. 

These efforts to raise revenue and reduce inequality through taxation are commendable. However, there’s something mostly missing from this agenda that proposes (and recently achieved) adding additional taxes for corporations and the wealthy. Absent, so far, is a serious discussion of direct tax relief for the rest of us.

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September 27, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Mann Presents Energy Tax Policy And Support For Zero-Emission Cars In Fleets Today At UC-Hastings

Roberta Mann (Oregon) presents Taxation Support for Zero-Emission Cars in Fleets: Cases from the US and Australia at UC-Hastings (with Diane Kraal (Monash; Google Scholar)) today as part of its Tax Speaker Series hosted by Heather Field:

Roberta-mannTwo qualitative case studies of fleet vehicles in the US and Australia are presented that consider the effect of energy tax policy to increase light car zero-emission electric vehicles (ZEV) adoption in each jurisdiction. The article reflects on tax policies of selected European countries with EV uptakes that surpass the US and Australia. This research makes a substantial contribution to energy policy in the US and Australia by determining energy policies that can enhance the uptake of light car ZEVs, thereby linking to the United Nation’s target of reducing CO2 emissions in the transport sector. Recommendations are supported by analysis of case study transport emissions and government data. This article is significant because it presents strategies for more effectively using tax for energy policy in the US and Australia to increase the number of light car ZEVs. Taxation is seen as necessary to complement EV technology. The US case study finds tax changes are needed to support the current US energy policy of increased uptake of electric vehicles in government fleets.

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September 27, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Evaluating The Tax Veto In A Digital Age: Legislative Efficiency And National Sovereignty In The European Union

Charlotte A. McFaddin (J.D. 2021, Virginia; Associate, Weil, Gotshal & Manges, Washington, D.C.), Note, Evaluating the Tax Veto in a Digital Age: Legislative Efficiency and National Sovereignty in the European Union, 62 Va. J. Int'l L. 429 (2022):

Virginia Journal of International LawThe total market capitalization of the six largest U.S.-headquartered tech companies now tops $4.5 trillion; yet much of their revenues legally escape taxation every year. Recognizing the challenges of taxing the digital economy, the international community joined forces to reform the outdated global tax framework. In 2018, however, the United States hesitated to commit to reform and international negotiations stalled. The European Commission (Commission) subsequently proposed an interim Digital Service Tax for the European Union (EU), in part, to incentivize stronger U.S. involvement in negotiations. Because the European Council requires unanimity when voting on tax proposals, however, the proposal failed when three Member States exercised their tax veto. Defeated by veto, EU leaders could have pursued Enhanced Cooperation to revive the legislation. Instead, the Commission proposed permanent elimination of tax unanimity through the obscure and never used Passerelle Clauses that allow legislators to utilize majority voting without amending any treaties. In doing so, the Commission signaled its desire for the European Union to emerge as a global tax leader, unencumbered by the need to obtain unanimity. However, the Commission’s proposal also raises serious EU state sovereignty concerns. 

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September 27, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Monday, September 26, 2022

Raskolnikov Presents Should Only The Richest Pay More Taxes? Today At UC-Irvine

Alex Raskolnikov (Columbia) presents Should Only the Richest Pay More? at UC-Irvine today as part of its Tax Policy Colloquium:

Alex_raskolnikov_0This paper challenges the leading academic, political, and cultural narrative supporting greater redistribution. The narrative holds that redistribution should come at the expense of a very restricted group of the highest earners: the one percent, the super-rich, the billionaire class. I argue that many reasons offered in support of this view also call for redistribution from a much broader group that includes the affluent—those with incomes in the ninetieth to ninety ninth percentiles of the distribution. Whether one looks at the recent trends in income concentration, wealth concentration, social mobility, economic growth, political polarization, or the rise of populism, the affluent are as great—and sometimes greater—contributors to these problems as those in the top one percent. Remarkably, contemporary legal and economic scholarship has ignored the affluent almost completely, greatly limiting the magnitude of possible economic transfers as well the forms that these transfers may take.

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September 26, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Neves & Semmler Present A Proposal For A Carbon Wealth Tax Today At Loyola-L.A.

Jose Pedro Bastos Neves (The New School) & Willi Semmler (The New School) presents A Proposal for a Carbon Wealth Tax: Modelling, Empirics, and Policy at Loyola-L.A. today as part of its Tax Policy Colloquium hosted by Theodore Seto:

Bastos-neves-semmlerAlthough economists widely advocate carbon pricing as an effective solution to reduce carbon emissions, this mechanism has had so far limited effects. This paper proposes a new type of tax to help finance (and accelerate) the green transition. The “carbon assets” tax would be levied on carbon-intensive (brown) wealth rather than carbon-intensive goods. We consider tax implementation issues such as tax base, incidence, and efficiency. Moreover, we analyze the impacts of such a tax scheme by setting up a model of asset pricing and dynamic portfolio decisions. Green and carbon-intensive returns used in the model are calibrated with low-frequency returns on stock prices between 2010 and 2021.

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September 26, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Lesson From The Tax Court: Honor The Corporate Fiction

Camp (2021)A corporation has no soul to be damned and no body to be kicked.  So supposedly said Baron Thurlow long, long ago.  It is but a  legal fiction.  It’s not the Borg (which is science fiction, not legal fiction).

The fictional nature of corporations creates all kinds of gnarly problems in criminal law, in constitutional law and, as we learn today, in tax law.  When I was in practice my clients often confused their personal selves with the closely held corporate doppelganger I created for them.  They repeatedly ignored the corporate fiction.  They were the kings of their empires and, like Louis XIV, they felt they were the corporation and the corporation was them.  I am sure many readers can relate to that!

In John E. Vorreyer and Melissa D. Vorreyer, et al. v. Commissioner, T.C. Memo. 2022-97 (Sept. 21, 2022) (Judge Greaves) two of the “et al” taxpayers ignored the corporate fiction to their detriment: they paid debts of their S Corporation from their personal funds and attempted to deduct those payments on their personal income tax returns as a §162 deduction. While the payments were in fact ordinary and necessary expenses for the carrying on a farm business, the corporate fiction prevented the taxpayers from taking the deduction on their individual returns.  It was not their farm business.  It was their corporation's.  Details below the fold. 

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September 26, 2022 in Bryan Camp, New Cases, Scholarship, Tax, Tax Scholarship | Permalink | Comments (2)

University Of Toronto Hosts Premiere Of The A.I. Taxman Documentary

University of Toronto Faculty of Law News, The AI Taxman: U of T Law Prof is the Subject of an Educational Documentary:

As an expert in taxation law, University of Toronto Professor Benjamin Alarie, the Osler Chair in Business Law at U of T’s Faculty of Law, set on a path several years ago to change how legal research is done.

In 2015, he co-founded a legal tech startup with U of T Law professors Anthony Niblett and Albert Yoon. Blue J’s software draws upon artificial intelligence to provide instant and comprehensive answers in complex areas of tax, labour, and employment law.

“Artificial intelligence is not going to take your job – professionals who use artificial intelligence will replace professionals who don't use artificial intelligence,” says Alarie in the trailer to the Canadian documentary, The A.I. Taxman.

The film will have its big screen premiere at the Isabel Bader Theatre on September 29 [free registration here]. The event is co-hosted by Blue J, the filmmakers, UDocs, and the University of Toronto’s Future of Law Lab at the Faculty of Law. ...

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September 26, 2022 in Tax, Tax News | Permalink

TaxProf Blog Weekend Roundup

Sunday, September 25, 2022

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 #2:

  1. SSRN Logo (2018)[308 Downloads]  The Passthrough Entity Tax Scandal, by Daniel Hemel (NYU; Google Scholar) (reviewed by David Elkins (Netanya; visiting NYU 2021-23; Google Scholar) here)
  2. [178 Downloads]  Computation of the Effective Tax Rate and the 'Top-up Tax', by Valentin Bendlinger (Vienna University of Economics & Business) & Georg Kofler (Vienna University of Economics & Business; Google Scholar)
  3. [174 Downloads]  Standing On the Shoulders of LLCs: The Tax Entity Status and Decentralized Autonomous Organizations, by Samuel D. Brunson (Loyola-Chicago; Google Scholar)
  4. [165 Downloads]  The Abandonment of International College Athletes by NIL Policy, by Victoria Haneman (Creighton; Google Scholar) & David Weber (Creighton; Google Scholar)
  5. [138 Downloads]  International Tax Reform: Challenges to Multilateral Cooperation, by Assaf Harpaz (Drexel; Google Scholar)

September 25, 2022 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, September 24, 2022

Death Of John Donaldson (William & Mary)

Virginia Gazette, Former W&M Law Professor Remembered as a ‘Great and Good Man’:

DonaldsonFormer William & Mary law professor John Edward Donaldson, recognized nationally and throughout Virginia for his knowledge of tax law, died Tuesday after a short illness. He was 84.

Donaldson retired after a 35-year teaching career at the college in 2001 as the Ball Professor of Law. Additionally, he worked for years in various leadership capacities with the Virginia Bar Association and served two four-year terms on the James City County Board of Supervisors.

“John Donaldson was a great and good man,” said former William & Mary president and law school dean Timothy J. Sullivan, who joined the law school faculty when Donaldson was already “a respected colleague.” ...

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September 24, 2022 in Legal Ed News, Legal Education, Obituaries, Tax, Tax News | Permalink

Chodorow: Why Trump’s Alleged Real-Estate Shenanigans Went Too Far

Slate:  Why Trump’s Alleged Real-Estate Shenanigans Went Too Far, by Adam Chodorow (Arizona State; Google Scholar):

Slate (2022)There’s an old saying that pigs get fat and hogs get slaughtered—that is, while there’s room for some playing around in the pen, the consequences could be quite severe if you go too far. Former President Donald Trump, his organization, and his three oldest children have just been accused some of some very hog-like behavior: allegedly inflating the value of his properties and overall net worth to potential lenders and insurers to get preferential interest rates. This is a civil, not criminal, suit, but New York State Attorney General Letitia James has referred the case to those responsible for enforcing federal criminal laws. Until now—with a few exceptions, like Trump University—Trump has avoided consequences for a variety of supposed wrongs. But the sheer scope of his allegedly false claims, and the documentary proof contained in James’ complaint, may finally have crossed that line. It should serve as an object lesson for all who are tempted to cheat the system.

Property values are difficult to assess absent a sale. Appraisers are notorious for valuing properties in ways that benefit their clients. Practically speaking, there’s some wiggle room. But at some point, valuations can be so high or low that no reasonable person could believe them to be accurate. ...

As I like to tell my law students, there is always a tax angle, and this case is no exception. As detailed in the complaint, some of the strongest evidence that Trump intentionally inflated the value of his properties—and hence his net worth—are found in claims he contemporaneously made for state property tax purposes. Not surprisingly, he gave low valuations to tax authorities, while giving much higher ones to his possible lenders. As the attorney general sees it, either he committed tax fraud by using unreasonably low valuations when dealing with tax authorities, or he committed fraud on his lenders and insurers by using valuations significantly higher than those he reported to the state and federal governments. ...

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September 24, 2022 in Tax, Tax News | Permalink

Friday, September 23, 2022

Weekly SSRN Tax Article Review And Roundup: Layser Reviews Reimagining The Tax System Through The Work Of Dorothy Day By Crawford & Afield

This week, Michelle Layser (San Diego; Google Scholar) reviews Bridget J. Crawford (Pace; Google Scholar) & W. Edward Afield (Georgia State; Google Scholar), Yesterday’s Protestor May be Tomorrow’s Saint: Reimagining the Tax System Through the Work of Dorothy Day, 76 Tax L. Rev. __(2023).

Layser (2018)

Political protests have become more frequent in recent years, but tax protests are nothing new. The Tax Revolt of the 1970s may be fresh in memory, but people have been protesting taxation since the earliest days of the Christian church. In fact, first century tax protests against the Roman Empire were so frequent that Jesus himself is said to have weighed in on the issue, telling the Pharisees they should “render unto Caesar what belongs to Caesar and to God what belongs to God.” A simplistic reading of this passage might suggest a Christian moral imperative to pay taxes. But as Professors Bridget Crawford and W. Edward Afield remind us, at least one prominent Catholic figure disagreed. Dorothy Day, the founder of the Catholic Worker movement, made conscientious tax protest a central part of her religious practice, setting her on a path toward sainthood.

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September 23, 2022 in Michelle Layser, Scholarship, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Tax Policy In The Biden Administration

Next Week’s Tax Workshops

Tax Workshops (Big)Monday, September 26: Alex Raskolnikov (Columbia) will present Should Only the Richest Pay More? as part of the UC-Irvine Tax Policy Colloquium. If you would like to attend, please RSVP here

Monday, September 26: Jose Pedro Bastos Neves (The New School) & Willi Semmler (The New School) will present A Proposal for a Carbon Wealth Tax: Modelling, Empirics, and Policy as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please contact Thedore Seto

Tuesday, September 27: Jennifer Taub (Western New England; Google Scholar) will present No Income Taxation Until Basic Accommodations: Toward Tax Justice in America as part of the NYU Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Daniel Shaviro.

Tuesday, September 27: Roberta Mann (Oregon) will present Taxation Support for Zero-Emission Cars in Fleets: Cases from the US and Australia (with Diane Kraal (Monash; Google Scholar)) as part of the UC-Hastings Tax Speaker Series. If you would like to attend, please contact Heather Field.

Thursday, September 29: Alex Raskolnikov (Columbia) will present Should Only the Richest Pay More? as part of the Columbia Faculty Workshop.

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September 23, 2022 in Colloquia, Legal Education, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Repetti Presents International Tax Policy, Manufacturing, And U.S. National Interests Today At Florida

Repetti

James R. Repetti (Boston College; Google Scholar) presents International Tax Policy, Manufacturing, and U.S. National Interests at Florida today as part of its Tax Policy Colloquium hosted by Charlene Luke:

Two tax regulations that permit U.S. multinational enterprises (MNEs) to use foreign contract manufacturers and to disregard their wholly owned foreign subsidiaries have created significant tax incentives for MNEs to move manufacturing outside the U.S. These tax incentives have contributed to the loss of 5 million manufacturing jobs, the closure of more than 91,000 plants, and a decline in domestic production since 1997. These declines have increased inequality and political instability, and have decreased U.S. national security and research and development efforts to improve production techniques. Given these harms, it makes little sense to allow these incentives to remain in our tax system.

This article proposes two amendments to the regulations to reduce or eliminate the tax incentives for offshoring.

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September 23, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Thursday, September 22, 2022

Eldar & Garber: Opportunity Zones—A Program In Search Of A Purpose

Ofer Eldar (Duke; Google Scholar) & Chelsea Garber (J.D. Candidate 2023, Duke), Opportunity Zones: A Program In Search Of A Purpose, 102 B.U. L. Rev. 1397 (2022):

Boston University Law Review (2022)In 2017, Congress created the Opportunity Zone (“OZ”) program to stimulate economic growth in low-income communities. The program was characterized by its unprecedented scale relative to previous place-based development efforts and was described as “perhaps the most ambitious economic development tool to come out of Congress in a generation.” However, the program was quickly criticized on numerous grounds, and its design flaws are so severe that several legislators have called for its reform or repeal. 

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September 22, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Countering Complexity's Corporate Bias: Tax Simplification As A Strategy To Reduce Profit Shifting In The African Extractive Sector

Tim Hirschel-Burns (J.D. 2022, Yale), Note, Countering Complexity's Corporate Bias: Tax Simplification as a Strategy to Reduce Profit Shifting in the African Extractive Sector, 47 Yale J. Int'l L. 165 (2022):

Logo-Yale-Journal-ILDespite their immense natural resource wealth and their intense need for revenue, African governments collect little revenue from the extractive sector. One significant reason for this revenue shortfall is that multinational corporations operating in the extractive sector use profit shifting strategies to artificially reduce their tax bills. These companies can typically afford large numbers of highly skilled lawyers and accountants. In contrast, African tax authorities are often highly under-resourced and undertrained. This Note argues that legal reforms that simplify tax administration would put African tax authorities and multinational corporations on a more level playing field.

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September 22, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Doug Shackelford Abruptly Retires As UNC Kenan-Flagler Business School Dean: ‘I’m Very Tired’

Triangle Business Journal, UNC Kenan-Flagler Business School Searching For New Leader After Shackelford Abruptly Retires:

Shackleford (2022)After nearly a decade in the role, Doug Shackelford has suddenly stepped down as the dean of the UNC Kenan-Flagler Business School.

Shackelford's abrupt retirement is effective today following the university announcing the move on Friday afternoon. A specific reason for the timing of the decision was not given. ...

Shackelford's retirement comes a few weeks after a former UNC-Chapel Hill student, Angelica Rose Brown, filed a lawsuit against three Kenan-Flagler professors and the UNC Board of Governors alleging race discrimination and retaliation. Shackelford is not mentioned in the lawsuit, which was filed Aug. 30 in the U.S. District Court for North Carolina’s Middle District.

The Daily Tar Heel reports that in a letter sent to faculty and staff Friday morning, Shackelford said, "I have run as hard as I could for as long as I could. I can’t continue at the pace this School deserves. I regret that I didn’t anticipate things better. I could tell that I was not recovering from long weeks as quickly as I had in the past and I was unduly frustrated at times, but I failed to foresee this timing." ...

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September 22, 2022 in Legal Ed News, Legal Education, Tax, Tax News, Tax Prof Moves | Permalink

NY Times Op-Ed: Can Republicans Tax the Rich?

New York Times Op-Ed:  Can Republicans Tax the Rich?, by Ross Douthat:

ConservatismThe movement known as national conservatism, which just wrapped up its latest conference in Florida, is the third major attempt to solve the Republican Party’s central 21st-century policy dilemma: How does a party that historically represented the rich and big business adapt to a world where conservatism’s constituencies are not just middle class but blue-collar, downscale and disappointed with the modern American economy?

The first attempted adaptation belonged to George W. Bush. His slogans were “compassionate conservatism” and the “ownership society,” and his policies offered new spending on education and health care, support for faith-based anti-poverty programs and easy credit for new homeowners — all theoretically designed to foster self-sufficiency rather than dependence, building a conservative alternative to the liberal welfare state.

After Bushism came to grief in the housing bubble and the financial crisis, the second adaptation had its hour: so-called reform conservatism, which imagined itself (I was one of the imaginers) as harder-headed than Bushism, offering a suite of technocratic fixes to increase economic mobility and improve middle-class life — and especially middle-class family life — without blowing out the federal budget.

This budget-conscious wonkery seemed poised to influence a Jeb Bush or Marco Rubio administration — before it was simultaneously outbid, absorbed and shattered by Donald Trump. ...

National conservatism represents the fullest version of this effort. It’s more philosophically ambitious than its compassionate-conservative and reformocon predecessors; its impresario, Yoram Hazony, claims to have rediscovered a consistent non-liberal and non-authoritarian Anglo-American conservatism, rooted in our elite’s long-discarded conservative-Protestant heritage, an argument he advances fascinatingly, if not entirely persuasively, in his recent book, “Conservatism: A Rediscovery.”

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September 22, 2022 in Tax, Tax News | Permalink

Wednesday, September 21, 2022

Guttentag: Law, Taxes, Inequality, And Surplus

Michael Guttentag (Loyola-L.A.; Google Scholar), Law, Taxes, Inequality, and Surplus, 102 B.U. L. Rev. 1329 (2022):

I Boston University Law Review (2022)n this contribution to the Boston University Law Review Symposium on Law, Markets, and Distribution, I introduce an important new exception to the presumption that the tax system is superior to the legal system as a tool to redistribute wealth. When legal rules are used to divvy up a surplus, there is no a priori reason to prefer the tax-and-transfer system over the legal system to address inequality. This is the “surplus-sharing exception.”

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September 21, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

ESG, Crypto, And What Does The IRS Got To Do With It?

Nizan Geslevich Packin (CUNY; Google Scholar) & Sean Stein Smith (CUNY; Google Scholar), ESG, Crypto, and What Does the IRS Got to Do With It?, 6 Stan. J. Blockchain L. & Pol'y ___ (2023):

Stanford-journal-blockchain-law-and-policyRegulation almost always lags behind innovation, and this is also the situation with many FinTech-based products and services, and particularly those offered by crypto industry players. The crypto sector is a new and innovative one, which has proven to be not only based on highly technical concepts, but also by high levels of volatility and financial risk. In attempting to understand how to address many of the issues it raises in legal fields ranging from to financial regulation such as tax requirements to environmental law, and specifically matters that relate to climate change and energy wasting, regulators often find themselves trying to implement existing legal frameworks rather than creating new, clear rules. Much has been written about the SEC’s regime of regulation by enforcement of the crypto industry, and the impact of this type of rulemaking on society, businesses and persons. However, other financial regulators adopting a similar style of rulemaking—such as the IRS—have gotten much less attention for the impact of their regulatory actions. One such notable example, which is relevant in the Environmental, Social and Governance (ESG) awareness era, relates to the unintended consequences of the IRS’ regulation by enforcement, given the impact that such new rules have on the transition to greener energy. 

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September 21, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Tax Prof Moves, 2020-23

Here is a list of (1) visiting assistant professor hires; (2) entry-level hires; (3) lateral moves; (4) promotions, tenures, chairs, and professorships; (5) administrative appointments: (6) visits; and (7) retirements involving tax professors in 2016-2020. (Email me any omissions.) 

MovesVAP Hires

Entry Level Hires

Lateral Moves

Promotions, Tenures, Chairs, and Professorships

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September 21, 2022 in Legal Education, Tax, Tax Prof Moves | Permalink

Johnson: Congressional Primacy, Equitable Tolling, And Tax Court Deficiency Litigation

Steve R. Johnson (Florida State), Congressional Primacy, Equitable Tolling, and Tax Court Deficiency Litigation, 77 Tax Law. __ (2023):

Tax-lawyerIn April 2022, in the Boechler case, the Supreme Court considered the nature of the statutory deadline for filing petitions to obtain Tax Court review in collection due process (“CDP”) cases. The Court held that the statutorily prescribed 30-day filing period is not jurisdictional and is subject to nonstatutory equitable tolling in “appropriate cases.”

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September 21, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Tuesday, September 20, 2022

Bearer-Friend Presents Poll Taxes, Revisited Today At UC-Hastings

Jeremy Bearer-Friend (George Washington; Google Scholar) presents Poll Taxes, Revisited at UC-Hastings today as part of its Tax Speaker Series hosted by Heather Field and Manoj Viswanathan:

Bearer-Friend (2021)This Article revisits four poll taxes imposed by Anglophone governments in the 20th century. Two of the poll taxes in the study are explicit in their statutory language of targeting based on race, ethnicity, or ancestry, while two make no mention of their intended targets in the statutory text. As this Article demonstrates, racialized targeting persists even when poll taxes make no mention of race, ethnicity or ancestry. And because poll taxes nominally include everyone—all people with heads—their ability to target specific groups of taxpayers is even more striking. In some ways, these facially neutral poll taxes are even more effective at targeting than the poll taxes that specify their political targets explicitly.

The primary audience for this Article is other tax law scholars who may only have a stylized or cursory understanding of poll taxes. A secondary audience is those outside of tax who seek to understand poll taxes from a tax scholar's point of view.  The Article draws from the statutory text of the poll taxes, the administrative guidance issued by the enforcers of the poll taxes, and the protest materials of those liable for the poll taxes. The article deploys a comparative study of four poll taxes to then arrive at broader conclusions about poll taxes specifically and tax policy more generally.

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September 20, 2022 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

St. Thomas (FL) Seeks To Hire A Clinical Tax Professor

St. Thomas (FL) Faculty Posting:

St-thomas-lawBased on the College of Law’s primary curriculum needs we are especially interested in candidates with teaching, scholarship and research interests in the subject-matter areas of Constitutional Law, Civil Procedure, Criminal Law and Procedure, Evidence, Professional Responsibility, Property, Torts, Wills and Trusts, as well as Appellate Advocacy Clinic and Tax Clinic. ...

We are now accepting applications for start dates of January 2023 and August 2023, and applications will be accepted on a rolling basis until the positions are filled. Application materials must include a cover letter addressing teaching interests, a detailed research agenda, the title of the applicant’s job-talk, a C.V., preferably with links to publications, and at least three references.

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September 20, 2022 in Legal Education, Tax, Tax Prof Jobs | Permalink

Mehrotra: Economic Inequality, American Fiscal Exceptionalism, And The Historical U.S. Resistance To National Consumption Taxes

Ajay K. Mehrotra (Northwestern; Google Scholar), The Missing U.S. Vat: Economic Inequality, American Fiscal Exceptionalism, and the Historical U.S. Resistance to National Consumption Taxes, 117 Nw. U. L. Rev. 151 (2022):

Northwestern Law Review (2022)Since the 1970s, economic inequality has soared dramatically across the globe and particularly in the United States. In that time, one of the obstacles of using fiscal policy to address inequality has been the growing myth of the “overtaxed American”—the misguided notion that U.S. taxpayers pay more in taxes than residents of other advanced, industrialized countries. This myth has persisted, in part, because of the peculiar and distinctive nature of the fractured American fiscal and social welfare state. Even a cursory review of comparative tax data shows that the United States, by most measures, is a low-tax country compared to other affluent nations. One reason for this shortfall is the missing U.S. value-added tax (VAT).

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September 20, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Monday, September 19, 2022

Peck: Standard Oil, Consolidated Coal, And The Roots Of The Resource Curse In West Virginia

Alison Peck (West Virginia), Standard Oil, Consolidated Coal, and the Roots of the Resource Curse in West Virginia, 124 W. Va. L. Rev. 101 (2021) (reviewed by Tracey Roberts (Cumberland; Google Scholar) here):

Despite its natural resource wealth, West Virginia today ranks last among all states in its residents’ overall sense of well-being, a puzzle that economists call “the resource curse.” Much of West Virginia’s wealth, in the form of coal, oil, and gas, left the state in the late nineteenth and early twentieth centuries before the state could tax it. This discouraging story was not inevitable. In 1905, a Morgantown lawyer named George C. Baker led an effort to tax coal, oil, and gas leases as personal property that nearly succeeded. Baker and his allies, Governor William M.O. Dawson and Tax Commissioner Charles W. Dillon, won a high-profile court battle in 1905 against industries that had managed to defeat hot-button tax reform efforts in the legislature the year before. While powerful Standard Oil Company was resigned to comply as it focused on more threatening battles elsewhere, the coal industry resisted. 

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September 19, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Lesson From The Tax Court:  Checks ... Still Matter

CheckWho uses paper checks anymore?  Not my kids.  My daughter even prefers to incur a surcharge for using her debit card to pay her rent rather than walking a paper check to the rental office.  The practical reason, she says, is that when she uses her debit card she can immediately see the impact on her checking account balance by looking at her “available balance” number in her banking app.  If she wrote a check, she’d have to wait until the check cleared and she fears over-drawing her account.

That delay—between the time a person writes and check and the time it gets reflected in their checking account—is what gives us our lesson in Estate of William E. Demuth Jr. et al. v. Commissioner, T.C. Memo. 2022-72 (July 12, 2022 )(Judge Jones).  In that case the issue was the value of an investment account on the date of the decedent’s death.  On that date there were 10 checks totaling $436,000 that had been written on the account but had not cleared.  The Executor did not include that amount on the Form 706 because the recipients of the checks had deposited them before the decedent died.  Their accounts had been credited.  They had been paid.  Or so thought the Executor.  The IRS, however, thought that the checks had not been paid because they had not cleared the decedent’s bank.  So the money still belonged to the taxpayer and should have been included in the valuation of his Estate.

In (mostly) agreeing with the IRS, Judge Jones gives us a useful lesson on basic commercial law principles.  Maybe my kids won't care, but enough folks still use checks that it's a lesson worth remembering.  Details below the fold. 

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September 19, 2022 in Bryan Camp, New Cases, Scholarship, Tax, Tax Practice And Procedure, Tax Scholarship | Permalink | Comments (8)

TaxProf Blog Weekend Roundup

Sunday, September 18, 2022

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  new papers debuting on the list at #2 and #3:

  1. SSRN Logo (2018)[295 Downloads]  The Passthrough Entity Tax Scandal, by Daniel Hemel (NYU; Google Scholar) (reviewed by David Elkins (Netanya; visiting NYU 2021-23; Google Scholar) here)
  2. [180 Downloads]  Strategic Incentives For Pillar Two Adoption, by Wei Cui (British Columbia; Google Scholar)
  3. [160 Downloads]  Standing On the Shoulders of LLCs: The Tax Entity Status and Decentralized Autonomous Organizations, by Samuel D. Brunson (Loyola-Chicago; Google Scholar)
  4. [146 Downloads]  The Abandonment of International College Athletes by NIL Policy, by Victoria Haneman (Creighton; Google Scholar) & David Weber (Creighton; Google Scholar)
  5. [102 Downloads]  International Tax Reform: Challenges to Multilateral Cooperation, by Assaf Harpaz (Drexel; Google Scholar)

September 18, 2022 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, September 17, 2022

This Week's Ten Most Popular TaxProf Blog Posts

Crawford & Afield: Reimagining The Tax System Through The Work Of Dorothy Day

Bridget J. Crawford (Pace; Google Scholar) & W. Edward "Ted" Afield (Georgia State; Google Scholar), Yesterday's Protestor May Be Tomorrow's Saint: Reimagining the Tax System Through the Work of Dorothy Day, 76 Tax L. Rev. ___ (2023):

NYU (2023)When is the nonpayment of taxes justified by conscientious objections? Legendary Catholic social activist Dorothy Day refused to pay federal income taxes, because she was an avowed pacifist who also cautioned against government overreach into the lives of citizens. This article asks whether the tax system should accommodate those who have moral objections, and if so, how accomplish that. Through the lens of Dorothy Day, who devoted her adult life to workers’ rights, pacificism, and service to the poor, this article makes three contributions to the conversation about the administration of a fair tax system.

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September 17, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Friday, September 16, 2022

Weekly SSRN Tax Article Review And Roundup: Speck Reviews Doran’s Executive Compensation And Corporate Governance

This week, Sloan Speck (Colorado; Google Scholar) reviews a new work by Michael Doran (Virginia; Google Scholar), Executive Compensation and Corporate Governance (Aug. 25, 2022).

Sloan-speck

Some say that the definition of insanity is doing the same thing repeatedly and expecting different results. In Executive Compensation and Corporate Governance, Michael Doran illustrates Congress’s tendency to meet this definition, especially in policy areas that implicate big business. Doran starts from the observation that, while significant empirical uncertainty exists as to whether lavish executive compensation reveals a breakdown of corporate governance, Congress’s extensive deployments of tax policy to curtail executive pay generally have fared poorly. Indeed, Doran argues that these legislative efforts, which span four decades, may have harmed shareholders and workers—the precise constituencies that Congress intended to protect.

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September 16, 2022 in Scholarship, Sloan Speck, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Next Week’s Tax Workshops

Tax Workshops (Big)Monday, September 19: Kathleen Delaney Thomas (North Carolina; Google Scholar) will present Fake News and the Tax Law (with Erin Scharff (Arizona State)) as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday, September 20: Jeremy Bearer-Friend (George Washington; Google Scholar) will present Poll Taxes, Revisited as part of the UC-Hastings Tax Speaker Series. If you would like to attend, please contact Heather Field.

Friday, September 23: James R. Repetti (Boston College; Google Scholar) will present International Tax Policy, Manufacturing, and U.S. National Interests as part of the Florida Tax Policy Colloquium. If you would like to attend, please contact Charlene Luke.

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September 16, 2022 in Colloquia, Legal Education, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink

Thursday, September 15, 2022

Blank & Osofsky: Simplicity Lost

Joshua D. Blank (UC-Irvine; Google Scholar) & Leigh Osofsky (North Carolina; Google Scholar), Simplicity Lost, 20 U. Pitt. Tax Rev. __ (2023):

Pittsburgh Tax Review (2021)The complexity of the tax law is one of the most serious problems facing U.S. taxpayers and the tax system. Among the many costs of tax complexity are (1) billions of hours of paperwork and stress that taxpayers face each year, (2) monetary costs that taxpayers bear when they hire advisors and purchase software to report their tax liability and file their tax returns, (3) difficulty that taxpayers encounter when attempting to claim tax credits and other benefits, and (4) challenges the IRS confronts when attempting to deter tax avoidance and evasion opportunities that tax complexity often creates.

This Article explores an often-overlooked moment in time in which Congress seemed to embrace an alternative—tax simplification—as a real possibility, as part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98). 

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September 15, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

ABA Tax Section Releases 22nd Annual Law Student Tax Challenge Problem

The ABA Tax Section has released the J.D. Problem (rules; entry form) and LL.M. Problem (rules; entry form) for the 22nd Annual Law Student Tax Challenge:

LSTCAn alternative to traditional moot court competitions, the Law Student Tax Challenge (LSTC) is organized by the Section’s Young Lawyers Form. The LSTC asks two-person teams of students to solve a complex business problem that might arise in everyday tax practice. Teams are initially evaluated on two criteria: a memorandum to a senior partner and a letter to a client explaining the result. Based on the written work product, six teams from the J.D. Division and four teams from the LL.M. Division receive a free trip to the Section’s Midyear Meeting, where each team presents its submission before a panel of judges consisting of the country’s top tax practitioners and government officials, including tax court judges. The competition is a great way for law students to showcase their knowledge in a real-world setting and gain valuable exposure to the tax law community.

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September 15, 2022 in ABA Tax Section, Legal Education, Tax, Teaching | Permalink

Walker: Tax Complexity And Technology

David I. Walker (Boston University; Google Scholar), Tax Complexity And Technology, 97 Ind. L.J. 1095 (2022):

Indiana-law-journalThe Federal Income Tax Code has become increasingly complex over time with the implication that many taxpayers no longer understand the connection between their life decisions and their taxes. Some commentators have suggested that increasing computational complexity may be attributable in part to the proliferation of tax preparation software that renders such complexity manageable at filing time, but otherwise does nothing to mitigate the “black box” nature of the tax system. While such complexity and opacity undercut explicit incentives embedded in the Code, make planning more difficult, and undermine political accountability for taxes, they may also reduce the inefficient distortion or deadweight loss of the income tax, particularly with respect to higher-income taxpayers.

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September 15, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Wednesday, September 14, 2022

Griffith & Staudt: Taxing Guns

Thomas Griffith (USC) & Nancy Staudt (Dean, Pardee RAND Graduate School; Vice President of Innovation, RAND Corporation), Taxing Guns, 95 S. Cal. L. Rev. 73 (2021): 

Southern-california-law-reviewPolicymakers across the nation have recently adopted new taxes on guns. As expected, these policies are controversial. Supporters believe the taxes will increase the cost of weapons, decrease sales, and provide the revenue necessary to fund the costs of gun violence across America. Critics, by contrast, argue the taxes are nothing more than poll taxes and will drive the market for weapons underground.

Lost in the debate is the fact that gun taxes have been on the books for over a century. Congress adopted the first of such taxes during World War I to address the nation’s extraordinary wartime revenue needs. Since then, policymakers at every level of government have added more taxes, creating a capacious system of modern gun taxation in the process.

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September 14, 2022 in Scholarship, Tax, Tax Scholarship | Permalink