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DePaul University

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Corporate Taxation

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Full-Text Articles in Law

Taxing Publicly Traded Entities, Emily Cauble Feb 2015

Taxing Publicly Traded Entities, Emily Cauble

College of Law Faculty

Publicly traded entities are generally treated as corporations for U.S. tax purposes. Under various exceptions, however, publicly traded entities may obtain special treatment if they earn predominately certain specified types of qualifying income. This Article examines potential rationales for granting special tax treatment to certain publicly traded entities. As the analysis in this Article will show, many of the potential rationales are unconvincing. In addition, to the extent that some rationales may be persuasive, the current rules are not designed in a way that best comports with these potential justifications. Therefore, reform is needed.To reform the current system, this Article …


Taxing Publicly Traded Entities, Emily Cauble Feb 2015

Taxing Publicly Traded Entities, Emily Cauble

College of Law Faculty

Publicly traded entities are generally treated as corporations for U.S. tax purposes. Under various exceptions, however, publicly traded entities may obtain special treatment if they earn predominately certain specified types of qualifying income. This Article examines potential rationales for granting special tax treatment to certain publicly traded entities. As the analysis in this Article will show, many of the potential rationales are unconvincing. In addition, to the extent that some rationales may be persuasive, the current rules are not designed in a way that best comports with these potential justifications. Therefore, reform is needed.To reform the current system, this Article …