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Articles 1 - 13 of 13

Full-Text Articles in Law

Neither Rules Nor Standards, Steven A. Dean Dec 2012

Neither Rules Nor Standards, Steven A. Dean

Faculty Scholarship

No abstract provided.


The Tax Expenditure Budget Is A Zombie Accountant, Steven A. Dean Nov 2012

The Tax Expenditure Budget Is A Zombie Accountant, Steven A. Dean

Faculty Scholarship

No abstract provided.


The Hidden Limits Of The Charitable Deduction: An Introduction To Hypersalience, Lilian Faulhaber Aug 2012

The Hidden Limits Of The Charitable Deduction: An Introduction To Hypersalience, Lilian Faulhaber

Faculty Scholarship

Behavioral economics introduced the concept of salience to law and economics. In the area of tax policy, salience refers to the prominence of taxes in the minds of taxpayers. This article complicates the literature on salience and taxation by introducing the concept of “hypersalience,” which is in many ways the mirror image of hidden taxation. While a revenue-raising tax provision must be hidden for taxpayers to underestimate their tax bill, a revenue-reducing tax provision – such as a deduction, exclusion, or credit – must be more than fully salient for taxpayers to underestimate their tax bill. In other words, the provision itself ...


Economic Depreciation, Accrual Taxation, And The Samuelson Theorem: An Essay On The Structure Of Capital Income Taxation, Theodore Sims Apr 2012

Economic Depreciation, Accrual Taxation, And The Samuelson Theorem: An Essay On The Structure Of Capital Income Taxation, Theodore Sims

Faculty Scholarship

Samuelson (1964) showed that an income tax with an allowance for "economic" depreciation leads to asset valuations that are independent of their holders’ marginal rates of tax. The tax system is then "neutral," in the sense that assets have the same value to all, irrespective of whether or at what rate they are taxed. In this essay I illustrate and show formally that taxation of cash flow minus an allowance for economic depreciation leads to the taxation of value as it accrues. That is, economic depreciation and pure accrual taxation are exactly equivalent. I suggest also that the form of ...


Giving Useful Tax Planning Advice, Heather M. Field Mar 2012

Giving Useful Tax Planning Advice, Heather M. Field

Faculty Scholarship

No abstract provided.


Good News In A Bad Economy: Service Acquiesces On Pro-Taxpayer Application Of Passive Activity Loss Rules To Limited Liability Companies, Orly Mazur Jan 2012

Good News In A Bad Economy: Service Acquiesces On Pro-Taxpayer Application Of Passive Activity Loss Rules To Limited Liability Companies, Orly Mazur

Faculty Scholarship

After nearly two decades with no guidance addressing the correct characterization of a limited liability company’s activities under the passive activity loss rules, investors are finally receiving the answer they have patiently sought. Several courts, the Service’s acquiescence and newly issued proposed regulations have recently clarified that ownership interests in limited liability companies are not all treated as presumptively passive limited partnership interests. Instead, the more lenient general passive activity loss rules set forth in the temporary regulations are used to determine the active or passive nature of many activities. These decisions have been accurately hailed as a ...


“Early-Bird Special” Indeed!: Why The Tax Anti-Injunction Act Permits The Present Challenges To The Minimum Coverage Provision, Neil S. Siegel, Michael C. Dorf Jan 2012

“Early-Bird Special” Indeed!: Why The Tax Anti-Injunction Act Permits The Present Challenges To The Minimum Coverage Provision, Neil S. Siegel, Michael C. Dorf

Faculty Scholarship

In view of the billions of dollars and enormous effort that might otherwise be wasted, the public interest will be best served if the Supreme Court of the United States decides the present challenges to the Patient Protection and Affordable Care Act (ACA) during its October 2011 Term. Potentially standing in the way, however, is the federal Tax Anti-Injunction Act (TAIA), which bars any “suit for the purpose of restraining the assessment or collection of any tax.” The dispute to date has turned on the fraught and complex question of whether the ACA's exaction for being uninsured qualifies as ...


Not The Power To Destroy: An Effects Theory Of The Tax Power, Neil S. Siegel, Robert D. Cooter Jan 2012

Not The Power To Destroy: An Effects Theory Of The Tax Power, Neil S. Siegel, Robert D. Cooter

Faculty Scholarship

The Supreme Court’s “new federalism” decisions impose modest limits on the regulatory authority of Congress under the Commerce Clause. According to those decisions, the Commerce Clause empowers Congress to use penalties to regulate interstate commerce, but not to regulate noncommercial conduct. What prevents Congress from penalizing non-commercial conduct by calling a penalty a tax and invoking the Taxing Clause? The only obstacle is the distinction between a penalty and a tax for purposes of Article I, Section 8. In National Federation of Independent Business v. Sebelius (NFIB), the Court considered whether the minimum coverage provision in the Patient Protection ...


Technological Innovation, International Competition, And The Challenges Of International Income Taxation, Michael J. Graetz, Rachael Doud Jan 2012

Technological Innovation, International Competition, And The Challenges Of International Income Taxation, Michael J. Graetz, Rachael Doud

Faculty Scholarship

Because of the importance of technological innovation to economic growth, nations strive to stimulate and attract the research and development (“R&D”) that leads to that innovation and to make themselves hospitable environments for the holding of intellectual property (“IP”). Tax policies have taken center stage in their efforts to accomplish these goals and to capture a share of the income from technological innovations. Designing cost-effective methods of supporting technological innovations has, however, become substantially more difficult as the world economy has become more interconnected. Where R&D is performed and where income is earned change in response to the ...


Accepting The Limits Of Tax Law And Economics, Alex Raskolnikov Jan 2012

Accepting The Limits Of Tax Law And Economics, Alex Raskolnikov

Faculty Scholarship

This Article explores the limits of tax law and economics, attributing them to the unique complexity of the tax optimization problem. Designers of the optimal tax system must account for the impossibility of deterring socially undesirable behavior, provide for redistribution, and minimize social costs on the basis of assumptions that are laden with deeply contested value judgments, pervasive empirical uncertainty, or both. Given these challenges, it is hardly surprising that economic theory has a much weaker connection to the content of our tax laws and their enforcement than it does to the content and enforcement of many other legal regimes ...


I Like To Pay Taxes: Taxpayer Support For Government Spending And The Efficiency Of The Tax System, David M. Schizer, Yair Listokin Jan 2012

I Like To Pay Taxes: Taxpayer Support For Government Spending And The Efficiency Of The Tax System, David M. Schizer, Yair Listokin

Faculty Scholarship

This paper is based on a simple proposition, which we believe but cannot prove: If taxpayers support the way their tax dollars are spent, they are more likely to comply voluntarily and less likely to change their behavior to avoid tax. To show that our claim is plausible, we offer direct evidence from a literature involving experiments, draw on the more general economics and psychology literature on prosocial behavior, and also invoke philanthropy as a “real world” analogy; after all, charitable donors contribute money voluntarily (indeed, 2% of the U.S. GDP), largely because they believe in the way their ...


Fiscal Policy In An Era Of Austerity, David M. Schizer Jan 2012

Fiscal Policy In An Era Of Austerity, David M. Schizer

Faculty Scholarship

We face a time of stagnant economic growth, severe unemployment, massive budget deficits, and an increasingly competitive global economy. These daunting challenges are the legacy of a number of unwise policy decisions in both the public and private sectors. Although the good news is that unsound policies can be changed, the bad news is that no single step will do the trick. It is a challenge to rely on monetary policy when interest rates are near zero. There also is uncertainty – and a heated debate among economists – about the effectiveness of a Keynesian stimulus. One thing we know is that ...


"Keep Government Out Of My Medicare": The Elusive Search For Popular Support Of Taxes And Social Spending, Gillian Lester Jan 2012

"Keep Government Out Of My Medicare": The Elusive Search For Popular Support Of Taxes And Social Spending, Gillian Lester

Faculty Scholarship

Despite the broad reach of what is often referred to as the “social safety net,” Americans continue to have conflicted and contradictory attitudes about the relationship between tax burdens and social welfare benefits. Extensive and lively debates persist within political science, sociology, law, economics, and psychology over how mass publics form opinions about the role of the state in mediating economic equality through both taxation and welfare institutions. This chapter identifies several key themes that reappear across disciplinary and subject boundaries. Specifically: information about taxes and spending is complex and may be hard for ordinary citizens to fully apprehend, cognitive ...