Paul L. Caron

Friday, September 25, 2020

Symposium On Ruth Mason's The Transformation Of International Tax

Symposium, Ruth Mason's The Transformation Of International Tax, 114 Am. J. Int'l L. 353 (2020):

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September 25, 2020 in Conferences, Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

How Philanthropy Benefits The Super-Rich

The Guardian, How Philanthropy Benefits the Super-Rich:

Philanthropy, it is popularly supposed, transfers money from the rich to the poor. This is not the case. In the US, which statistics show to be the most philanthropic of nations, barely a fifth of the money donated by big givers goes to the poor. A lot goes to the arts, sports teams and other cultural pursuits, and half goes to education and healthcare. At first glance that seems to fit the popular profile of “giving to good causes”. But dig down a little. 

The biggest donations in education in 2019 went to the elite universities and schools that the rich themselves had attended. In the UK, in the 10-year period to 2017, more than two-thirds of all millionaire donations — £4.79bn — went to higher education, and half of these went to just two universities: Oxford and Cambridge. When the rich and the middle classes give to schools, they give more to those attended by their own children than to those of the poor. British millionaires in that same decade gave £1.04bn to the arts, and just £222m to alleviating poverty.

The common assumption that philanthropy automatically results in a redistribution of money is wrong. A lot of elite philanthropy is about elite causes. Rather than making the world a better place, it largely reinforces the world as it is. Philanthropy very often favours the rich — and no one holds philanthropists to account for it.

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September 25, 2020 in Legal Ed News, Legal Education, Tax, Tax News | Permalink | Comments (0)

Thursday, September 24, 2020

Brunson: Using A Pigouvian Tax To Reduce Gun Violence

Sam Brunson (Loyola-Chicago), Paying For Gun Violence, 104 Minn. L. Rev. 605 (2019) (reviewed by David Elkins (Netanya) here):

Gun violence is an outsized problem in the United States. Between a culture that allows for relatively unconstrained firearm ownership and a constitutional provision that ensures that ownership will continue to be relatively unchecked, it has proven virtually impossible for politicians to address the problem of gun violence. And yet, gun violence costs the United States tens of billions of dollars or more annually. These tens of billions of dollars are negative externalities—costs that gun owners do not bear themselves, and thus that are imposed on the victims of violence and on taxpayers generally.

What can we do about these costs? One way to reduce them would be to pass meaningful laws, laws that would reduce the likelihood of gun violence. In light of both the culture and the Constitution of the United States, though, such legislation seems improbable. Lawmakers face significant limitations on their ability to regulate firearms directly. If they cannot prevent gun violence, though, they can at least cause gun owners to internalize the costs. Where direct regulation is difficult, they can turn instead to a Pigouvian tax.

In this Article, I propose a Pigouvian tax on firearms.

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September 24, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Zelenak: Examining The Internal Revenue Code For Disparate Racial Impacts

Lawrence Zelenak (Duke), Examining the Internal Revenue Code for Disparate Racial Impacts, 168 Tax Notes Fed. 1807 (Sept. 7, 2020):

Tax Notes FederalIn this article, Zelenak considers how a legislature committed to racial justice should respond to a convincing statistical demonstration that a particular provision of the Internal Revenue Code has disparate racial impacts. He says there are several steps between a demonstration that a provision (for example, the charitable deduction) disproportionately benefits white taxpayers in nominal terms, and the conclusion that it should be repealed or reformed to eliminate the disparate impact. He argues it is necessary (1) to establish a normative baseline from which the current provision departs, (2) to determine the race-based distribution of the ultimate benefits and burdens of the provision (as contrasted with the provision’s nominal impacts), and (3) to determine that a focus on the provision (rather than a broader or narrower focus) is at an appropriate level of analytical granularity. He concludes that the most important use of evidence of disparate racial impacts of tax provisions will almost certainly be as an argument for repealing or reforming a provision that constitutes bad tax policy even apart from its racial effects.

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September 24, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Tax Prof Twitter Census (2020-21 Edition)

TwitterAccording to Bridget Crawford's latest census, there are 1,368 Law Profs on Twitter (55.4% male/44.5% female), including 85 Tax Profs (several with tax in their Twitter handles):

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September 24, 2020 in Legal Ed News, Legal Education, Tax, Tax News | Permalink | Comments (0)

Wednesday, September 23, 2020

Bearer-Friend Presents Should The IRS Know Your Race? The Challenge Of Colorblind Tax Data Virtually Today At UC-Irvine

Jeremy Bearer-Friend (George Washington) presents Should the IRS Know Your Race? The Challenge of Colorblind Tax Data, 73 Tax L. Rev. (2019), virtually at UC-Irvine today as part of its Tax Policy Colloquium Series hosted by Joshua Blank, Victor Fleischer, and Omri Marian:

Bearer Friend (2021)This Article draws from original archival sources to document a century of colorblindness in federal tax data. It traces the omission of race and ethnicity from IRS statistical publications since 1913, Joint Committee on Taxation publications since 1926, and Treasury Office of Tax Analysis publications since 1974. It shows how these omissions are exceptional relative to other areas of public policy where federal data on race and ethnicity are readily available, such as student achievement or healthcare exchange enrollments. It then evaluates the merits of colorblind tax data and argues that tax data should include race and ethnicity in order to meet goals of transparency, democracy, and equality. Colorblind tax data obscure racial inequality and prevent its remedy. Colorblind tax data also undermine the democratic accountability of tax policy. In fairness to the status quo practice of colorblindness by federal tax data institutions, this Article also considers whether the possible justifications for colorblind tax data should override principles of equality and transparency. It argues they should not.

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September 23, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (1)

Buchanan Presents Confessions Of A Recovering Economist Virtually Today At Oregon

Neil Buchanan (Florida) presents Confessions of a Recovering Economist virtually at Oregon today as part of its Tax Policy Colloquium Series hosted by Roberta Mann:

6a00d8341c4eab53ef0263e966931d200b-300wiTax law scholars, and legal scholars in general, have over the past few decades shown increasing deference to what is sometimes called "the economic approach to law." Interdisciplinary approaches to law are to be welcomed, of course, but the economic approach has crowded out other approaches, because far too many legal scholars (and economists) presume that economic analyses are correct, rigorous, and most importantly, objective. Whether or not those analyses are correct can only be determined on a case-by-case basis, while their supposed rigor confuses "doing a lot of math" with being precise in a meaningful way. Most importantly, however, these approaches are not and can never be objective. 

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September 23, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

SSRN Tax Professor Rankings

SSRN Logo (2018)SSRN has updated its monthly ranking of 750 American and international law school faculties and 3,000 law professors by (among other things) the number of paper downloads from the SSRN database.  Here is the new list (through September 1, 2020) of the Top 25 U.S. Tax Professors in two of the SSRN categories: all-time downloads and recent downloads (within the past 12 months):

    All-Time   Recent
1 Reuven Avi-Yonah (Michigan)  193,145 Reuven Avi-Yonah (Michigan) 7,710
2 Dan Shaviro (NYU) 121,322 Lily Batchelder (NYU) 5,852
3 Lily Batchelder (NYU) 117,881 David Kamin (NYU) 5,449
4 David Gamage (Indiana-Bloom.) 117,213 D. Dharmapala (Chicago) 4,390
5 Daniel Hemel (Chicago) 117,026 Ruth Mason (Virginia) 4,029
6 Darien Shanske (UC-Davis) 110,510 Daniel Hemel (Chicago) 3,826
7 David Kamin (NYU) 106,112 Bridget Crawford (Pace) 3,279
8 Cliff Fleming (BYU)    105,156 Diane Ring (Boston College) 3,029
9 Manoj Viswanathan (Hastings) 102,222 Shu-Yi Oei (Boston College)  2,934
10 Rebecca Kysar (Fordham) 101,100 Hugh Ault (Boston College) 2,753
11 Ari Glogower (Ohio State) 99,925 Richard Ainsworth (BU) 2,431
12 Michael Simkovic (USC) 44,685 Dan Shaviro (NYU) 2,380
13 D. Dharmapala (Chicago) 41,770 David Gamage (Indiana-Bloom.) 2,308
14 Paul Caron (Pepperdine) 37,327 Margaret Ryznar (Indiana-Indy)    2,205
15 Louis Kaplow (Harvard) 33,605 Darien Shanske (UC-Davis)  1,877
16 Richard Ainsworth (BU) 30,545 Brad Borden (Brooklyn) 1,833
17 Ed Kleinbard (USC) 27,098 Robert Sitkoff (Harvard) 1,785
18 Vic Fleischer (UC-Irvine) 26,324 Louis Kaplow (Harvard) 1,565
19 Jim Hines (Michigan) 25,261 Manoj Viswanathan (Hastings) 1,545
20 Brad Borden (Brooklyn) 25,016 Paul Caron (Pepperdine)   1,500
21 Bridget Crawford (Pace) 24,785 Cliff Fleming (BYU) 1,438
22 Robert Sitkoff (Harvard) 24,684 Ari Glogower (Ohio State) 1,407
23 Ted Seto (Loyola-L.A.) 24,496 Katie Pratt (Loyola-L.A.) 1,343
24 Gladriel Shobe (BYU) 24,206 Michael Simkovic (USC) 1,315
25 Richard Kaplan (Illinois) 23,805 Rebecca Kysar (Fordham) 1,223

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September 23, 2020 in Scholarship, Tax, Tax Prof Rankings, Tax Scholarship | Permalink | Comments (0)

Pittsburgh Tax Review Publishes New Issue

Pittsburgh Tax Review (2017)The Pittsburgh Tax Review has published Vol. 17, No. 1 (2020):

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September 23, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Raskolnikov: Distributional Arguments, In Reverse

Alex Raskolnikov (Columbia), Distributional Arguments, In Reverse, 105 Minn. L. Rev. ___ (2020):

What should the government do about the distribution of resources and outcomes in the society? Two arguments have shaped academic debates about this question for several decades. The first argument states that economic regulation should focus on efficiency alone, leaving distributional considerations for the tax-and-transfer system. The second argument objects to government assistance for people unintentionally harmed by legal reforms. Taken together, the two arguments impose major restrictions on the range of possible distributional policies.

This Article contends that a growing body of research in the economics of trade, immigration, industrial organization, labor, and environmental regulation reveals that the core assumptions underlying the two distributional arguments do not hold. Moreover, once these assumptions are changed to reflect reality, the analytical machinery underlying the arguments goes in reverse: The conclusions become not merely indeterminate but opposite of those originally advanced.

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September 23, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Tuesday, September 22, 2020

Kleven Presents The EITC And The Extensive Margin Virtually Today At NYU

Henrik Kleven (Princeton) presents The EITC and the Extensive Margin: A Reappraisal virtually at NYU today as part of its Tax Policy Colloquium Series hosted by Lily Batchelder and Daniel Shaviro:

Kleven_henrik2This paper reconsiders the impact of the Earned Income Tax Credit (EITC) on labor supply at the extensive margin. I investigate every EITC reform at the state and federal level since the inception of the policy in 1975. Based on event studies comparing single women with and without children, or comparing single mothers with different numbers of children, I show that the only EITC reform associated with clear employment increases is the expansion enacted in 1993. The employment increases in the mid-late nineties are very large, but they are influenced by the confounding effects of welfare reform and a booming macroeconomy. Based on different approaches that exploit variation in these confounders across household type, space and time, I show that the employment effects align closely with exposure to welfare reform and the business cycle. Single mothers who were unaffected by welfare reform (but eligible for the EITC) did not respond. Overall and contrary to consensus, the case for sizable extensive margin effects of the EITC is fragile. I highlight the presence of informational frictions, widely documented in the literature, as a natural explanation for the absence of extensive margin responses.

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September 22, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Polsky Presents Taxing Buybacks Virtually Today At UC-Hastings

Gregg Polsky (Georgia) presents Taxing Buybacks (with Daniel Hemel (Chicago)) virtually at UC-Hastings today as part of its Tax Speakers Series hosted by Heather Field and Manoj Viswanathan:

PolskyHead_0-2-262x300A recent rise in the volume of corporate share repurchases has prompted calls for changes to the rules governing stock buybacks. These calls for reform are animated by concerns that buybacks enrich corporate executives at the expense of productive investment. This emerging anti-buyback movement includes presidential candidates as well as academics and Republicans as well as Democrats. The primary focus of buyback critics has been on securities law changes to deter repurchases, with only passing mention of potential tax law solutions.

This article critically examines the policy arguments against buybacks and arrives at a mixed verdict. On the one hand, claims that buybacks reduce corporate investment and inappropriately reward executives turn out to be poorly supported. On the other hand, the article identifies legitimate tax-related concerns about the rising buyback tide. Buybacks exacerbate two of the U.S. tax system’s most severe flaws. The first is the “Mark Zuckerberg problem”: the effective nontaxation of firm founders on what is essentially labor income. The second is what we call the “Panama Papers problem”: the use of U.S. capital markets by investors in offshore tax havens to generate tax-free returns.

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September 22, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Pittsburgh Tax Review Publishes New Issue

Pittsburgh Tax Review (2017)The Pittsburgh Tax Review has published Vol. 17, No. 1 (2019):

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September 22, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Monday, September 21, 2020

Gravelle Presents Sharing the Wealth: How To Tax The Rich Virtually Today At Loyola-L.A.

Jane G. Gravelle (Congressional Research Service) presents Sharing the Wealth: How to Tax the Rich virtually today at Loyola-L.A. today as part of its Tax Policy Colloquium Series hosted by Katie Pratt and Ted Seto:

GravelleThis paper considers methods for taxing income of the affluent. Much of this income is unrealized capital gains that escapes tax. Conventional individual income taxes changes cannot capture this income and corporate taxes cannot target the wealthy. Other options are estate and gift taxes, taxation of gains on an accrual basis, and a wealth tax. Accrual taxation of capital gains most closely captures untaxed income, can be targeted to the wealthy, and appears to be feasible. If wealth and accrual taxation are deemed too difficult, a combination of conventional changes and taxing gains at death are options. ...

Summing Up
At the heart of the problem of taxing the rich is that the individual income tax does not reach much of the income of the extremely affluent. Each of the options for doing so has advantages and limitations. Individual income tax changes tax only income already subject to tax. There are significant problems surrounding a wealth tax and many barriers to be overcome; a wealth tax also increases taxes on assets already subject to tax in many cases.

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September 21, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (2)

Congressional Research Service Seeks To Hire Head Of American Law Division

Assistant Director and Senior Specialist (American Law Division):

CRS LogoSummary:  The Congressional Research Service (CRS) seeks a senior manager to lead its American Law Division (ALD), one of CRS’ five research divisions. CRS provides objective, nonpartisan, and authoritative legislative research, analysis, and consultative support exclusively to the U.S. Congress.

Salary:  $131,239 to $197,300 per year

Responsibilities:  This position serves as head of the American Law Division, a major CRS research division. In this capacity, and reporting directly to the Director of CRS, the Assistant Director leads, plans, directs, and evaluates the work of a team of attorneys in its production of written products and consulting services in support of the U.S. Congress.

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September 21, 2020 in Legal Education, Tax | Permalink | Comments (0)

Lesson From The Tax Court: Receipts Are Not Enough

Tax Court (2020)In Anna M. Armstrong v. Commissioner, T.C. Sum. Op. 2020-26 (Sept. 17, 2020), Judge Panuthos teaches that substantiation does not just mean showing the amount of an expense; it means showing entitlement to deduct that expense.  It's an exemplary lesson in substantiation, including a review of the Cohan doctrine, and of the home office deduction.  Along the way, we learn just how tax practitioners can give value to their clients: teach them that receipts are not enough.

At first glance, this case might seem unimportant because it concerns below-the-line miscellaneous itemized deductions for unreimbursed employee expenses.  Section 67(g) totally disallows those types of deductions for tax years 2018-2025.

But I think this opinion is worth your time.

First, COVID.  Congress might actually re-authorize the deduction of unreimbursed employee expenses for tax year 2020 as part of the next COVID relief bill.  I do not have any inside knowledge on this, but some in Congress might view reviving unreimbursed employee expense deductions as a benefit to taxpayers forced to work from home during COVID shutdowns.  Others might believe that Congress gave enough relief in the Economic Impact Payments.  And this tax benefit is one that invites conflict and, hence, litigation.  Regardless of what Congress does, those taxpayers who are independent contractors continue to qualify for a home office deduction and this opinion teaches how to substantiate that use.  I give a couple of COVID thoughts at the end of the post.

Second, Judge Panuthos gives a wonderfully compact, lucid explanation of what taxpayers and their representatives need to know about substantiation.  I repeatedly tell my students that when you want to understand the law, find a good trial court opinion that explains it.  This is one of those opinions.  It’s a great teaching case.

Finally, some readers might find current utility from these lessons because 2017 and possibly 2016 are still open years.  Besides, taxpayers frequently stumble over the substantiation rules, especially for establishing a home office, whether or not they are taking deductions above or below the line.  For all those reasons I invite you to continue reading....

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September 21, 2020 in Bryan Camp, New Cases, Scholarship, Tax, Tax Scholarship | Permalink | Comments (1)

TaxProf Blog Weekend Roundup

Sunday, September 20, 2020

The Top Five New Tax Papers

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

  1. SSRN Logo (2018)[495 Downloads]  Policy Options for Taxing the Rich, by Lily Batchelder (NYU) & David Kamin (NYU)
  2. [493 Downloads]  Ending Corporate Tax Avoidance and Tax Competition: A Plan to Collect the Tax Deficit of Multinationals, by Kimberly Clausing (UCLA), Emmanuel Saez (UC-Berkeley) & Gabriel Zucman (UC-Berkeley),
  3. [477 Downloads]  Rethinking Tax for the Digital Economy After COVID-19, by Tarcisio Diniz Magalhaes (McGill) & Allison Christians (McGill) (reviewed by Young Ran (Christine) Kim (Utah) here)
  4. [219 Downloads]  Economic Reality in EU VAT, by Ad van Doesum (Maastricht) & Frank Nellen (Maastricht)
  5. [137 Downloads]  Who Benefits from Place-Based Policies? Job Growth from Opportunity Zones, by Alina Arefeva (Wisconsin), Morris Davis (Rutgers), Andra Ghent (North Carolina) & Minseon Park (Wisconsin)

September 20, 2020 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink | Comments (0)

Saturday, September 19, 2020

This Week's Ten Most Popular TaxProf Blog Posts

  1. Bryan Camp (Texas Tech), Lesson From The Tax Court: Rejected e-Filed Return Starts The SOL On Assessment
  2. Rory Bahadur (Washburn), Attrition And Bar Performance
  3. Erwin Chemerinsky (Dean, UC-Berkeley), David Faigman (Dean, UC-Hastings), Kevin Johnson (Dean, UC-Davis), Jennifer Mnookin (Dean, UCLA) & Song Richardson (Dean, UC-Irvine), Joint Statement About the Value of Critical Race Theory
  4. David French, The Use And Abuse Of Critical Race Theory In American Christianity
  5. NALP, More Salary Data For The Law School Class Of 2019
  6. Paul Caron (Dean, Pepperdine), September 11th At Pepperdine
  7. Bryan Camp (Texas Tech), Tax Profs On Both Sides In Case Pending in Supreme Court: CIC Services v. IRS
  8. Paul Caron (Dean, Pepperdine), History Is Happening Tonight At 6:00 PM PT On Zoom
  9. U.S. News, 2021 College Rankings
  10. Paul Caron (Dean, Pepperdine), Erwin Chemerinsky (Dean, UC-Berkeley), Margaret Dalton (Dean, San Diego), Allen Easley (Dean, Western State), David Faigman (Dean, UC-Hastings),  Susan Freiwald (Dean, San Francisco), Andrew Guzman (Dean, USC), Anna Han (Dean, Santa Clara), Jenny Martinez (Dean, Stanford), Jennifer Mnookin (Dean, UCLA), Matt Parlow (Dean, Chapman), Song Richardson (Dean, UC-Irvine), Michael Schwartz (Dean, McGeorge), Sean Scott (Dean, California Western) & Michael Waterstone (Dean, Loyola-L.A.), Letter Request Supreme Court To Make Oct. 5-6 Online Bar Exam Open Book With No Proctoring

September 19, 2020 in About This Blog, Legal Education, Tax, Weekly Top 10 TaxProf Blog Posts | Permalink | Comments (0)

Taxation As A Barrier To Blockchain Innovation

Michael Chatham (Radford University) & Thomas K. Duncan (Radford University), Taxation as a Barrier to Blockchain Innovation:

BlockchainThough it is not the only cryptocurrency in circulation, Bitcoin has been one of the dominant and more highly valued digital currencies in the blockchain family. The IRS recently decided to treat Bitcoin and all other cryptocurrencies as property, thus causing ownership interests in these cryptocurrencies to generate a taxable transaction any time they are sold or traded for another good or service. We argue that taxation of cryptocurrencies and the recordkeeping necessities that come with it serve to inhibit the innovation in and growth of what could be an extremely valuable new commodity, the blockchain itself. We offer alternative strategies to mitigate the potential effects of these types of regulatory tax policies.

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September 19, 2020 in Scholarship, Tax | Permalink | Comments (0)

Friday, September 18, 2020

Weekly SSRN Tax Article Review And Roundup: Speck Reviews Brunson's Georgia, The IRS, And The KKK

This week, Sloan Speck (Colorado) reviews a new work by Samuel D. Brunson (Loyola Chicago), Addressing Hate: Georgia, the IRS, and the Ku Klux Klan.

Speck (2017)

The Ku Klux Klan’s second iteration began at a time of transformation for the American fiscal state. As economists and politicians reoriented the federal tax system towards progressive income taxation, white ethnonationalists consolidated and organized around false and pernicious understandings of the historic hate group. In 1915, a new Klan emerged, claiming as many as four million members at its peak in 1924. As Sam Brunson argues in his important new article, Addressing Hate: Georgia, the IRS, and the Ku Klux Klan, the Bureau of Internal Revenue and the State of Georgia each played crucial roles in both facilitating the rise of the second Klan and hastening its formal demise in the mid-1940s. Brunson’s valuable work resonates in our current political climate, as contemporary supremacist groups claim privileges under state corporate law and the Internal Revenue Code. How we address these groups today should be informed by the important history that Brunson uncovers.

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September 18, 2020 in Scholarship, Sloan Speck, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink | Comments (0)

Tax Policy In The Trump Administration

Tax Profs On Both Sides In Case Pending in Supreme Court: CIC Services v. IRS

Currently before the Supreme Court is a case called CIC Services v. IRS. It involves the question of whether §7421 — Commonly called the Anti-Injunction Act (“AIA”) — prevents CIC from suing the IRS over the propriety of Notice 2016-66. That Notice declares certain micro-captive insurance arrangements as “transactions of interest.” It triggers certain reporting requirements for both CIC (as a material advisor) and CIC clients who have engaged in the arrangements described in the Notice. CIC asserts the Notice was illegally issued.

CIC (and another entity who has since dropped out) sued in federal district court, asking the court to (1) declare Notice 2016-66 invalid and (2) permanently enjoin the Service from enforcing the Notice. The district court dismissed the suit as barred by both the AIA and the Declaratory Judgment Act (DJA), 28 U.S.C. §2201(a). The AIA says that “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The DJA permits suits for declaratory judgements except for suits “with respect to Federal taxes....”

A split Sixth Circuit panel affirmed. A closely divided Sixth Circuit then denied CIC’s petition for rehearing en banc. How closely divided? Six judges thought the rehearing petition should be denied. Six dissenting judges thought it should be granted. One judge said he thought the dissenters had the better of the argument but he was going to vote to deny because of circuit precedent. He expressed the hope that the Supreme Court would take the case. And, guess what? The Supreme Court took the case.

A summary of the Parties' argument and the Tax Prof briefs comes below the fold

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September 18, 2020 in Bryan Camp, New Cases, Tax, Tax Practice And Procedure, Tax Profs | Permalink | Comments (0)

Shurtz: Tax, Class, Women, And Elder Care

Nancy E. Shurtz (Oregon), Tax, Class, Women, and Elder Care, 43 Seattle U. L. Rev. 225 (2019):

Elder care is a large and growing sector in the comprehensive health care system in the United States. It is an issue of particular importance to women because women live longer than men, have higher incidences of degenerative ailments, and are more likely to be institutionalized. Women also face greater financial challenges in funding their health care maintenance. Whereas wealthy individuals enjoy a multitude of elder care choices and can even self-insure to avoid the steep expense and risk of long-term care insurance, most women do not possess the resources to exercise such a wide degree of choice. Middle-income women increasingly feel the squeeze of concurrent rises in medical and housing costs and must often engage in contingency Medicaid planning. Low-income women, particularly those who are single, living in rural areas, or members of an ethnic minority, have few viable health care options and are the most likely to be herded into institutional care facilities. Nursing homes carry high costs and often do not offer high-level or personalized care. Current tax policy, however, is structured to favor institutional care. Conspicuously lacking are adequate subsidies to facilitate home-based options and meaningful support for caregiving labors, both key factors that contribute to the dearth of care options for our poorest citizens. The tax system is in dire need of modification to address this exploding elder care crisis, requiring explicit acknowledgment of the need to generate revenues dedicated to fulfilling our public commitment to the basic welfare of this rapidly growing cohort of the American population.

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September 18, 2020 in Legal Education, Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Thursday, September 17, 2020

Questions Raised About Purdue Global University's Tax-Exempt Status

Purdue IRS

Inside Higher Ed, Questions Raised About Purdue Global's Tax-Exempt Status:

review conducted by the Century Foundation raised questions about the documents Purdue University Global presented to the Internal Revenue Service when it applied for tax-exempt status in August 2019.

Purdue University acquired for-profit Kaplan University from Graham Holdings in 2017, then used the acquisition to create a new online institution called Purdue University Global. Purdue Global relies on a Graham subsidiary, the educational services company Kaplan, to provide numerous support activities like financial aid administration, marketing, international student recruiting, business office functions and first-year student advising. Purdue Global acquired tax-exempt status from the IRS in December 2019.

Bob Shireman, director of higher education excellence and senior fellow at the Century Foundation, believes that the IRS was provided with misleading information about the nature of the deal between Purdue Kaplan. After reviewing documents provided by Purdue, Shireman said that Purdue Global excluded Kaplan from its list of contractors and failed to disclose Kaplan as an organization with which the university has a "close connection." ...

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September 17, 2020 in IRS News, Tax, Tax News | Permalink | Comments (0)

Bi-Annual Taxes: A Simple Solution to Rising Tax Non-Compliance, Shrinking IRS Budgets, And Increasing Taxpayer Burden

Jeffrey A. Dubin (MIT) & Emma Cockerell (USC), Bi-Annual Taxes – A Simple Solution to Rising Tax Non-Compliance, Shrinking IRS Budgets, and Increasing Taxpayer Burden:

Each year, individual tax non-compliance results in billions of dollars of lost tax revenue. While the Internal Revenue Service (IRS) conducts examinations of select returns, the audit rate has fallen precipitously in past decades.


Meanwhile, the number of individual returns has grown and return complexity has risen. Individuals face a dauntingly complex tax code that requires the assistance of paid preparers. More than ever, the IRS experiences greater demands for assistance from taxpayers but fewer resources to fulfill these demands. Instead of the oft-proposed IRS budget increase, we propose a simple and pragmatic, but transformative, solution: the bi-annual filing and collection of taxes, which would minimize taxpayer and paperwork burdens, free up IRS funding, and result in a de facto doubling of the audit rate.

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September 17, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (5)

Kristin Hickman Named McKnight Presidential Endowed Professor At University Of Minnesota

Professor Hickman Named a McKnight Presidential Professor:

Hickman (2020)Professor Kristin Hickman has been named a McKnight Presidential Professor.

The McKnight Presidential Endowed Professorship program at the University “is one of the highest honors for faculty and recognizes highly distinguished, world-class scholars. In recognition of their excellence, the names of all McKnight Presidential Professors are engraved on monuments that line our Scholars Walk.” Recipients are chosen based on their academic and research accomplishments and their contributions to advancing the University among its peers.

Hickman, who joined the Law School in 2004, is a leading authority in the fields of tax administration and administrative law. Her articles on these topics have appeared in the Columbia Law ReviewCornell Law Review, and Duke Law Journal, among other publications.

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September 17, 2020 in Legal Education, Tax, Tax News, Tax Prof Moves | Permalink | Comments (0)

Brunson: Addressing Hate — Georgia, The IRS, And The KKK

Sam Brunson (Loyola-Chicago), Addressing Hate: Georgia, the IRS, and the Ku Klux Klan:

In 1944, the Ku Klux Klan officially suspended its operations. Two years later, it had entirely ended. In part this was the inevitable result of a decade of declining influence and membership. In part, though, it was the result of actions by the federal government and the state of Georgia.

In 1916 the Ku Klux Klan incorporated as a Georgia fraternal organization, following a model of the Masons and other fraternal organizations. It also claimed to be a tax-exempt fraternal beneficiary society under the new federal income tax. These legal statuses provided the Klan with legal rights and benefits and also shrouded it in a cloak of respectability: it could claim that it was not merely a terroristic white supremacist group, but that it provided fraternal benefits to its members and the surrounding community.

Its incorporation and tax status provided it with benefits, it also imposed obligations on the organization. The Klan ultimately proved incapable of meeting these requirements. It violated the terms of its corporate charter and of tax exemption as a fraternal beneficiary society. The Bureau of Internal Revenue assessed a $685,305 tax on the Klan and, when the Klan did not pay, filed a lien. The state of Georgia in turn revoked its corporate charter. While these moves did not cause the second Klan’s death, they did seal its death.

This Article relates the story of the Klan’s corporate and tax statuses.

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September 17, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (1)

Shanske & Gamage: How The Federal Reserve Should Help States And Localities

Darien Shanske (UC-Davis) & David Gamage (Indiana), How the Federal Reserve Should Help States and Localities Right Now, 96 Tax Notes State 765 (May 11, 2020):

This essay explains how and why the Federal Reserve could support state and local governments during the COVID-19 emergency to prevent drastic spending cuts.

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September 17, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Wednesday, September 16, 2020

Repetti Presents The Appropriate Roles For Equity And Efficiency In A Progressive Income Tax Virtually Today At Oregon

Jim Repetti (Boston College) presents The Appropriate Roles for Equity and Efficiency in a Progressive Income Tax, 24 Fla. Tax Rev. ___ (2020), virtually at Oregon today as part of its Tax Policy Colloquium Series hosted by Roberta Mann:

ProfileImage.imgIncreased focus on economic efficiency in formulating tax policy, at the expense of achieving equity, has resulted in decreased rate progressivity in our individual income tax. This decrease has exacerbated inequality.

There are several explanations for the intense focus on efficiency and reduced emphasis on equity. Predictions of efficiency gains from low individual income tax rates appear more certain than equity gains from progressive tax rates. Efficiency gains seem measurable, while equity gains appear intangible and unquantifiable. In addition, distributive justice, which underlies and shapes tax equity, exists in many abstract forms, some of which may not require progressive tax rates. 

This article argues, however, that the emphasis on efficiency is misplaced. Inequality imposes measurable costs on the health, social wellbeing and intergenerational mobility of our citizens, as well as on our democratic process, which are corroborated by significant empirical analysis.

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September 16, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Ordower Posts Three Tax Papers On SSRN

Henry Ordower (St. Louis), Capital, an Elusive Tax Object and Impediment to Sustainable Taxation, 24 Fla. Tax Rev. ___ (2021):

Florida Tax Review (2019)Sustainable taxation requires stability and predictability. Sustainable taxation is a tax or taxes that collect sufficient revenue to support the governmental goods and services the society needs and wants. The taxes must provide for 1) even-handedness — something akin to horizontal equity, 2) distributional fairness — a concept emerging from notions of vertical equity, 3) transparency in application so that the populace understands and accepts the tax and the need for it and 4) collection mechanisms that do not favor some societal groups, especially those with resources to secure creative tax advisors, over others who lack the resources. Narrow base taxes — fuel, alcohol, tobacco — cannot meet these criteria and the broad base taxes currently applicable — value added, payroll and income — also fail to meet one or more of the criteria. While specialized taxes like environmental taxes and sin taxes (alcohol, tobacco) serve useful regulatory functions and may achieve their behavioral objectives in part, they do so primarily by increasing the cost of engaging in the undesirable behavior and pricing some actors out of the activity. Using a pricing rather than a direct regulatory mechanism, the specialized taxes change the conversation from social rejection of the behavior to acceptance as long as the actor is willing and able to pay the high price. Is it all right to pollute if one pays to do so? Direct regulation might prove less regressive and less likely to be viewed as simply a matter of price and more as a matter of societal mainstream and commitment to addressing a problem.

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September 16, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

How Well-Targeted Are Payroll Tax Cuts As A Response To COVID-19? Evidence From China

Wei Cui, Jeffrey Hicks & Max B. Norton (British Columbia), How Well-Targeted Are Payroll Tax Cuts as a Response to COVID-19? Evidence from China:

Numerous countries cut payroll taxes in response to economic downturns caused by COVID-19. This includes China, which completely exempted most firms from making social insurance (SI) contributions, resulting in an average tax cut of 21 percentage points on formal labor costs and approximately 20% of total tax remittances made by firms. We use novel data on 900,000 firms in one Chinese province to document new facts about the structure of SI in China and evaluate payroll tax cuts as a COVID-19 relief measure. We calculate that labor informality causes 54% of tax-registered firms---representing 24% of aggregate economic activity---to receive no benefits. Labor formality also increases with firm size, further skewing the benefit of payroll tax cuts towards large firms.

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September 16, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (1)

The FTC Is Investigating Intuit Over TurboTax Practices

Following up on my previous post, Here’s How TurboTax Just Tricked You Into Paying To File Your Taxes:  ProPublica, The FTC Is Investigating Intuit Over TurboTax Practices:

TruboTax (2020)The Federal Trade Commission has been investigating Intuit and its marketing of TurboTax products, following ProPublica’s reporting that the Silicon Valley company deceived tax filers into paying when they could have filed for free.

The FTC probe, run out of the commission’s Bureau of Consumer Protection, centers on whether Intuit violated the law against unfair and deceptive practices in commerce. One focus of the investigation is whether TurboTax marketing misdirected customers who were eligible to file their taxes for free into paid products.

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September 16, 2020 in Tax, Tax News | Permalink | Comments (0)

Tuesday, September 15, 2020

Kern Presents Illusions Of Justice In International Taxation Virtually Today At NYU

Adam Kern (Ph.D. 2021, Princeton) presents Illusions of Justice in International Taxation virtually at NYU today as part of its Tax Policy Colloquium Series hosted by Lily Batchelder and Daniel Shaviro:

0I criticize a common way of thinking about justice in international taxation, and I propose an alternative. My critical target is a claim I call the Capture Principle. Common ground among many government officials, leading tax scholars, and several of the few philosophers who have thought about international taxation, the Capture Principle asserts that each state should have rights to tax income generated from economic activities within its territory, rights whose value scales in proportion to the income generated from the hosted economic activities.

The Capture Principle appears to embody an ideal of reciprocity. I argue that this appearance is illusory. I examine three arguments that connect those two ideas, and I show that each fails on its own terms. Even if we ought not to free-ride off others, ought to pay compensation for the burdens we place on others’ public sectors, ought to reward people for the surplus value that they create— the Capture Principle does not follow.

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September 15, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Stetson Competition Generates Tax Solutions To Address Climate Change

New Competition Generates Tax Solutions to Address Climate Change:

Stetson Logo (2020)Stetson University College of Law launched a new competition to galvanize students to develop innovative tax law policies that could fund solutions for sea level rise.

Though tax policy might not be the first discipline to come to mind in which to seek tools to combat climate change, attorney and author Richard O. “Dick” Jacobs felt confident Stetson students, if given the challenge, could mine it to great effect. Rising sea levels are a pressing issue for Florida’s future, and Jacobs thought funding a competition would jump start a conversation by focusing on tax policy solutions to help address the problem.

And so The Stetson Environmental Tax Policy Writing Competition: Tax Policy Solutions to Address Sea Level Rise was born. Students submitted their ideas in late spring, and a committee of tax and environmental lawyers judged the competition using the following criteria: (1) breadth and depth of analysis and sources, (2) creativity and originality, (3) objectivity and legal accuracy, (4) effectiveness of writing style, (5) practicality for addressing the issue, and (6) compliance with the contest rules.

Submissions could include proposed changes to the Florida Constitution and to Florida tax and regulatory law. The first and second place winners split a $1,000 cash prize. The winners of the inaugural competition were:

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September 15, 2020 in Legal Ed News, Legal Education, Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Oei & Ring: When Data Comes Home — Next Steps In International Taxation's Information Revolution

Shu-Yi Oei (Boston College) & Diane M. Ring (Boston College), When Data Comes Home: Next Steps in International Taxation's Information Revolution, 66 McGill L.J. ___ (2020):

Over the last decade, there has been a revolution in cross-border tax information exchange and reporting. While this dramatic shift was the product of multiple forces and events, a fundamental reality is that politics, technology, and law intersected to drive the shift to the point where nation-states will now transmit and receive from each other significant ongoing flows of taxpayer information. States can now expect to accumulate large stashes of data on cross-border income, assets, and activities on a scale and level of comprehensiveness unmatched by previous information exchange regimes.

This article examines the pressing follow-up question of how this data will be used and what issues nation-states will confront when data comes home.

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September 15, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

2020 IFA International Tax Student Writing Competition (Sept. 30 Deadline)

IFA Logo (2015)The deadline in the International Fiscal Association's 2020 International Tax Student Writing Competition is September 30:

2020 IFA International Tax Student Writing Competition:
Subject: Any topic relating to U.S. taxation of income from international activities, including taxation under U.S. tax treaties.
Open to: All students during the 2019-20 academic year (including independent study and summer 2020 school courses) pursuing a graduate degree (J.D., L.L.M., S.J.D., M.S.T., MTA, Masters of Taxation, or similar program). Any appropriate papers written in fall 2019 or spring and summer 2020.
Publication: The winning author will be entitled to publish his/her article in the Tax Management International Journal, which is produced by Bloomberg BNA.
Submission DeadlineSeptember 30, 2020.
Prize:  $2,000 cash, plus expenses-paid invitation to the IFA USA Branch Annual Meeting in Chicago on April 22-23, 2021.

Here are the recent winners:

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September 15, 2020 in Legal Ed News, Legal Education, Scholarship, Tax, Tax Scholarship, Teaching | Permalink | Comments (0)

Monday, September 14, 2020

Christians and Diniz Magalhães Present The Rise Of Cooperative Surplus Taxation Virtually Today At Loyola-L.A.

Allison Christians (McGill) and Dr. Tarsício Diniz Magalhães (McGill) presents The Rise of Cooperative Surplus Taxation virtually today at Loyola-L.A. today as part of its Tax Policy Colloquium Series hosted by Katie Pratt and Ted Seto:

ChristiansThe world’s tax policy leaders are currently engaged in debate over who should tax the income streams produced with the help of cross-border regulatory coordination — the cooperative surplus over the gains that, in a counterfactual world, would be available if investments were confined to the domestic economy. To the extent there ever was a coherent relationship between consensus tax policy norms and the distribution of cooperative surplus, that relationship is now hopelessly skewed by real life factors, chief among them the rapid advancement of innovative technology that transcends physical boundaries of all kinds. The growing dissatisfaction of those on the wrong side of the skew had already initiated a rise in innovative ways to tax cooperative surplus when COVID-19 struck, significantly increasing the stakes for taxation and prompting yet more reform proposals. There are now at least fourteen strategies in play, each drawing varying levels of scrutiny, buy-in, and pushback.

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September 14, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Hemel Presents Clarifying The Role Of Redistribution In Cost-Benefit Analysis Virtually Today In California

Daniel Hemel (Chicago) presents Clarifying the Role of Redistribution in Cost-Benefit Analysis virtually today as part of the San Diego-Davis-Hastings Tax Law Speaker Series:

UnnamedCost-benefit analysis is the standard method for policy evaluation across U.S. federal executive-branch agencies. Cost-benefit analysis, as traditionally implemented by federal agencies, does not explicitly account for changes in income redistribution or the resource costs of income redistribution. Rising concern about income inequality—including but not limited to income inequality across racial and ethnic groups—has focused new attention on this feature of cost-benefit analysis and has generated renewed criticism of the redistribution-neutral approach.

This paper seeks to clarify the role of income redistribution in agency cost-benefit analysis and articulate conditions under which regulatory evaluation should account for distributive consequences. In particular, it seeks to provide concrete guidance to a hypothetical incoming presidential administration regarding top-down policies for regulatory evaluation across the executive branch. Part I distinguishes among traditional (redistribution-neutral) cost-benefit analysis, wealth maximization, and social welfare analysis. It explains why traditional redistribution-neutral cost-benefit analysis and social welfare analysis are potentially justifiable methods for policy evaluation but wealth maximization is not. Part II considers three justifications for the traditional redistribution-neutral approach.

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September 14, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (0)

Copenhagen Business School Hosts Virtual Conference Today On Inequality Within International Taxation

Inequality Int'l Tax'n

Copenhagen Business School hosts a two-day virtual conference beginning today on Inequality Within International Taxation (program):

How should concerns about inequality influence the choices that countries make in the design of their international tax laws and regulations? What role do international tax rules play in reducing (or exacerbating) inequalities of income and wealth, and how do concerns such as gender and racial inequalities inform and intersect with economic and political concerns? Can tax rules, for example, allow wealthier countries to help pull poorer countries out of poverty? Will political systems be willing to use tax policy to address the effects of continuing discrimination in employment, housing, and other areas of people’s live?

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September 14, 2020 in Conferences, Tax, Tax Conferences | Permalink | Comments (0)

TaxProf Blog Weekend Roundup

Sunday, September 13, 2020

The Top Five New Tax Papers

This week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list:

  1. SSRN Logo (2018)[487 Downloads]  Policy Options for Taxing the Rich, by Lily Batchelder (NYU) & David Kamin (NYU)
  2. [469 Downloads]  Ending Corporate Tax Avoidance and Tax Competition: A Plan to Collect the Tax Deficit of Multinationals, by Kimberly Clausing (UCLA), Emmanuel Saez (UC-Berkeley) & Gabriel Zucman (UC-Berkeley),
  3. [429 Downloads]  Rethinking Tax for the Digital Economy After COVID-19, by Tarcisio Diniz Magalhaes (McGill) & Allison Christians (McGill) (reviewed by Young Ran (Christine) Kim (Utah) here)
  4. [247 Downloads]  The Effect of U.S. Tax Reform on the Tax Burdens of U.S. Domestic and Multinational Corporations, by Scott Dyreng (Duke), Fabio Gaertner (Wisconsin), Jeffrey Hoopes (North Carolina) & Mary Vernon (Wisconsin)
  5. [242 Downloads]  What Are Minimum Taxes, and Why Might One Favor or Disfavor Them?, by Daniel Shaviro (NYU)

September 13, 2020 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink | Comments (0)

Saturday, September 12, 2020

This Week's Ten Most Popular TaxProf Blog Posts

Zelinsky Posts Two Tax Papers On SSRN

Edward Zelinky (Cardozo), New York's Ill-Advised Taxation of Nonresidents During COVID-19, 167 Tax Notes Fed. 1001 (May 25, 2020):

SSRN Logo (2018)For 2020, New York should tax neither the incomes of nonresident telecommuters nor the incomes of the volunteers who came from across the country to help New York confront the COVID-19 emergency.If New York will not act in this sensible fashion, Congress should. In the next round of coronavirus legislation, Congress can prohibit the states from taxing, for the duration of the coronavirus emergency, the incomes of nonresident telecommuters and out-of-state medical volunteers.

Edward Zelinky (Cardozo), CalSavers and ERISA Redux: The District Court’s Second Opinion in Howard Jarvis Taxpayers Association v. The California Secure Choice Retirement Savings Program, NYU Rev. Employee Benefits & Executive Compensation (2020):

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September 12, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Friday, September 11, 2020

Weekly SSRN Tax Article Review And Roundup: Holderness Reviews Walker's Tax Complexity And Technology

This week, Hayes Holderness (Richmond) reviews David I. Walker (Boston University), Tax Complexity and Technology:

Holderness (2017)Tax preparation platforms like TurboTax and TaxAct offer taxpayers a (relatively) easy way to complete and file their tax returns. Tax preparation businesses like H&R Block similarly ease the burden on taxpayers of completing and filing tax returns; those businesses also use technology to provide their services. Cumulatively, over 90% of individual taxpayers do their taxes with the help of these platforms or businesses, as opposed to filling out the returns themselves. Technology appears to be a tax simplification salve for the vast majority of individual taxpayers.

Not quite so fast, argues David Walker, in his draft article, Tax Complexity and Technology. While technology has undeniably simplified the return process for many, it has also helped mask the inner workings of the tax laws. Tax preparation platforms and businesses can operate like “black box” algorithms: just plug in the data and get a nice round number; don’t worry about how the number is reached. These black boxes allow for the complexity of the tax laws to grow.

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September 11, 2020 in Hayes Holderness, Scholarship, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink | Comments (0)

Tax Policy In The Trump Administration

Avi-Yonah Presents A New Corporate Tax Virtually Today At Florida

Revuen S. Avi-Yonah (Michigan) presents A New Corporate Tax, 99 Tax Notes Int’l 497 (July 27, 2020), virtually today at Florida as part of its Tax Colloquium Series:

'aviyonahThe US corporate tax is over 100 years old, and many academic observers have doubted its value. The standard explanation for why we tax corporations is that it is an indirect tax on shareholders, but that is not a valid reason to have a corporate tax because (a) shareholders can be taxed directly and (b) many shareholders are tax exempt and should not be taxed at all. However, there is another reason to tax corporations, which was in fact the original rationale why we adopted the corporate tax in 1909: To limit the power of large monopolistic corporations and regulate their activities. If that is the reason for the corporate tax, the US should have a different tax structure than the current 21% flat tax. 

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September 11, 2020 in Colloquia, Scholarship, Tax, Tax Scholarship, Tax Workshops | Permalink | Comments (1)

2021 Vault Law Firm Tax Rankings:  Skadden Is #1 For 11th Year In A Row

VaultVault has released its annual ranking of the Top 100 Law Firms, based on prestige as voted on by associates (methodology here). The Top Tax Practices are:



Home City

% Vote



New York




New York



Davis Polk

New York



Kirkland & Ellis




Baker McKenzie





New York



McDermott, Will & Emery




Cleary Gottlieb

New York



Latham & Watkins

Los Angeles



Sullivan & Cromwell

New York



Weil Gotshal

New York



Morgan Lewis




Simpson Thacher

New York



Caplin & Drysdale




Mayer Brown




Paul Weiss

New York



Miller & Chevalier




Eversheds Sutherland




Alston & Bird




Roberts Holland

New York


For the eleventh year in a row, Skadden is #1. The city rankings are:

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September 11, 2020 in Law Firm Tax Rankings, Tax | Permalink | Comments (2)

Layser: The Pro-Gentrification Origins Of Place-Based Investment Tax Incentives

Michelle Layser (Illinois), The Pro-Gentrification Origins of Place-Based Investment Tax Incentives and a Path toward Community Oriented Reform, 2019 Wis. L. Rev. 745 (reviewed by Ezra Rosser (American) here):

Place-based investment tax incentives, which encourage taxpayers to invest in poor areas, constitute a particularly controversial, yet undertheorized, category of tax laws. The central problem presented by current place-based investment tax incentives is a contradiction between rhetoric and reality. They are presented as laws that benefit low-income communities, yet the dominant types of place-based investment tax incentives are not designed for this purpose. Understanding the reasons for this disconnect is key to assessing the limits and potential of place-based investment tax incentives as anti-poverty tools. By tracing the development of place-based investment tax incentives to their pro-gentrification origins, this Article argues that what many anti-poverty advocates view as a flaw — the lack of safeguards for poor communities that allegedly opens the door to abuses — is, in fact, a feature of most current place-based investment tax incentives.

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September 11, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)

Thursday, September 10, 2020

Kahn & Kahn: Tax And Cross-Collateralized Nonrecourse Liability

Douglas A. Kahn (Michigan) & Jeffrey H. Kahn (Florida State), Tax and Cross-Collateralized Nonrecourse Liability, 24 Fla. Tax Rev. __ (2021):

Florida Tax Review (2019)This article explores the tax treatment of cross-collateral nonrecourse debt. When using the term cross-collateral debt, we are referring to nonrecourse debt that is connected with more than one piece of property. While tax issues concerning cross-collateralized properties can arise in several circumstances, the focus of this article is on the tax treatment of a transfer of property subject to a cross-collateralized nonrecourse liability to a controlled corporation in exchange for stock that qualifies for some or all nonrecognition under § 351. The article also discusses two other tax issues involving cross-collateralized nonrecourse liability – namely, cancellation of debt and determination of basis issues.

September 10, 2020 in Scholarship, Tax, Tax Scholarship | Permalink | Comments (0)