Law Commons^™

Moonshine To Motorfuel: Tax Incentives For Fuel Ethanol, Roberta F. Mann, Mona L. Hymel

Roberta F Mann

Abstract: Biofuels have been embraced by supporters from President George W. Bush to the Natural Resources Defense Council. Before 1930, the U.S. Treasury focused on shutting down small alcohol producers. After 1978, U.S. energy policy sought to encourage ethanol production to reduce dependence on foreign oil. Federal and state incentives have been credited with increasing ethanol production from 175 million gallons in 1980 to 3.9 billion gallons in 2005. The Internal Revenue Code contains three income tax credits designed to encourage ethanol use: the alcohol mixture credit, the pure alcohol credit, and the small ethanol producer’s credit. The credits, together …

December 23, 2007: The Evangelical Stance On Global Warming, Bruce Ledewitz

Hallowed Secularism

The Evangelical Stance on Global Warming

Why Do Venture Capital Funds Burn Research And Development Deductions?, Calvin H. Johnson

Calvin H. Johnson

Venture capital funds form a separate corporation for each venture that they support, within their portfolio of diverse ventures. The separate incorporation reduces the tax value that could be achieved from deducting research and development costs. The resulting taxes are draconian, sometimes confiscatory. If R&D deductions were used optimally, taxable investors could achieve a tax regime that does not reduce their pretax return, and taxable investors would drive tax-exempt investors out of the funds. If capital must come from tax-exempt investors, the funds should still be trying to use the R&D deductions against taxable income of the successful ventures. Tax …

Creative Structures For The Disposition Of Real Estate (Slides)

William & Mary Annual Tax Conference

No abstract provided.

Creative Structures For The Disposition Of Real Estate: Extracting Equity On A Tax-Free Basis, Blake D. Rubin, Andrea M. Whiteway, Jon G. Finkelstein

William & Mary Annual Tax Conference

No abstract provided.

Genes As Tags: The Tax Implications Of Widely Available Genetic Information, Kyle D. Logue, Joel B. Slemrod

Law & Economics Working Papers Archive: 2003-2009

This paper examines how progress in genetics' specifically, the proliferation of knowledge about the human genome' may influence the feasibility and desirability of a tax that is based on individual human endowments or ability. The paper explores various forms that such a genetic endowment tax-and-transfer regime might take and identifies some of the benefits and costs of such a regime. The authors take no position on whether a genetic endowment tax would be desirable or not. However, one contribution of the paper is to observe that current law in the U.S., which restricts the use of genetic information by insurers …

Can You Have Your Cake And Eat It Too? Achieving Capital Gain Treatment While Keeping The Property, Ronald H. Jensen

Elisabeth Haub School of Law Faculty Publications

I will attempt to show in this article that the cases and rulings dispensing with the need for a sale or exchange are unjustified under the statutory scheme and prevailing capital gain jurisprudence, and further that such holdings constitute bad policy. Part II will set forth a number of examples, based largely on decided cases, where it has been held or contended that recoveries in excess of basis qualify for capital gain treatment even though the taxpayer did not sell or exchange the property. These cases will illustrate the contexts in which this issue arises and will provide a basis …

Preventive Tax Policy: Chief Justice Roger J. Traynor's Tax Philosophy, Mirit Eyal-Cohen

Mirit Eyal-Cohen

Justice Roger J. Traynor is best known for his judicial innovations in the fields of conflict of laws, product liability, and civil procedure. However, few would trace Traynor’s roots to the field of tax law. In the late 1930’s Traynor collaborated with Stanley S. Surrey, our nation's foremost authorities on federal tax law, and together they called for a substantial transformation of existing mechanisms for settling tax disputes. At that crucial time in history, high marginal tax rates intensified the friction between taxpayers and the government, boosted litigation and multiplied the number of tax controversies. Traynor and Surrey developed the …

Business Income (Article 7 Oecd Mc), Reuven S. Avi-Yonah, Kimberly A. Clausing

Law & Economics Working Papers Archive: 2003-2009

The 2006 OECD Report on attribution of profits to permanent establishments states that its recommendation “was not constrained by either the original intent or by the historical practice and interpretation of Article 7.” Moreover, the Report recommends a redrafting of both the Article itself and the Commentary. Given this, it seems appropriate to begin by asking: If we were working on a clean slate, what would be the best way to tax MNEs at source in the light of 21st century business practices?

The beginning point has to be that a modern MNE does not operate as if its constituent …

Estate Planning For Persons With Less Than $5 Million, Bridget J. Crawford

Elisabeth Haub School of Law Faculty Publications

Individuals of modest wealth may face significant estate taxes but do not have such a large base of wealth that they can 'afford' to make major lifetime gifts or other transfers to reduce estate taxes. But there are planning techniques that can help. Individuals in the ‘modest‘ wealth category face special hurdles in estate planning. This article will assume that the ‘modest‘ wealth category includes individuals whose net worth exceeds the amount of taxable gifts that may be protected by the unified credit (the equivalent of $1 million and herein referred to as the ‘gift tax exemption‘), but does not …

Economic Substance And The Supreme Court, Amandeep S. Grewal

Andy Grewal

If an individual seeks a benefit under a congressionally-enacted statute, is a court obliged to examine that statute to determine whether he qualifies for that benefit? To many district and circuit courts, the answer to that question is a firm 'no.' This article argues that that approach is inappropriate and, despite the lower courts' assertion to the contrary, flatly inconsistent with applicable Supreme Court precedent.

Faced with a taxpayer's argument that he qualifies for a tax benefit, the lower courts have often chosen to apply the so-called economic substance doctrine rather than the internal revenue laws. Under that doctrine, courts …

Trade Or Business Within The United States As N Interpretive Problem Under The Internal Revenue Code: Five Propositions, Anthony P. Polito

Anthony P Polito

Whether a particular set of activities constitute the conduct of a trade or business within the United States is an ongoing interpretive question affecting many foreign taxpayers. It controls what form of U.S. taxation, if any, applies to them. In the domestic context a trade or business entails profit-oriented non-investment activity that is regular, continuous and considerable. It is tempting, in the transition to the international context, to conclude that the conduct of a trade or business within the U.S. requires that the taxpayer’s U.S. activities must be regular continuous, and considerable, and the standard is often articulated in this …

Tax Malpractice Damages: A Comprehensive Review Of The Elements And The Issues, Jacob L. Todres

Jacob L. Todres

ABSTRACT & TABLE OF CONTENTS

Tax Malpractice Damages: A Comprehensive Review Of The Elements And The Issues

Suits to redress instances of tax malpractice may be framed either in tort or in contract. While some ancillary aspects of the litigation may differ, a professional must exercise reasonable competence and diligence to avoid malpractice liability under either approach. The same basic standards apply to attorneys and accountants. Typically the tort of negligence will be the key to any recovery, though other causes of action are also encountered.

Damages are normally recoverable for all injuries proximately caused by the malpractice, consequential as …

The Bridge At Jamestown: The Virginia Charter Of 1606 And Constitutionalism In The Modern World, A.E. Dick Howard

University of Richmond Law Review

No abstract provided.

Charitable Deductions For Rail-Trail Conversions: Reconciling The Partial Interest Rule And The National Trails System Act, Danaya C. Wright

Danaya C. Wright

Abstract: This article examines an undeveloped legal topic at the intersection of tax law and real property law: charitable deductions from income tax liability for donations of railroad corridors to be converted into recreational trails. The very popular rails-to-trails program assists in the conversion of abandoned railroad corridors into hiking and biking trails. But the legal questions surrounding the property rights of these corridors have been complex and highly litigated. In 1983, Congress amended the National Trails System Act to provide a mechanism for facilitating these conversions, a process called railbanking. In essence, a railroad transfers its real property interests …

The Fortunes & Foibles Of Exchange-Traded Funds, William A. Birdthistle

William Birdthistle

One of the most dynamic and complex new investment vehicles on the market today is the exchange-traded fund, a security that provides the diversification of a mutual fund but trades on an exchange like a stock. In just over a decade, the number of ETFs has proliferated to well over 500, attracting almost half a trillion dollars in investment. Most of that growth has occurred in just the past two years, and ETFs are projected to continue growing at a pace far faster than hedge funds and mutual funds in the coming years. Yet for all this extraordinary growth, legal …

Virtual World Taxation: Theories Of Income Taxation Applied To The Second Life Virtual Economy, Timothy J. Miano

Timothy J Miano

A virtual world is a computer simulated environment in which users interact with each other via graphical representations of themselves. Second Life is one such virtual world released by Linden Lab in 2003. One of the most important and interesting aspects of virtual worlds is the depth and sophistication of the economies that develop among the users. In fact, some virtual worlds, including Second Life, have currency exchanges where users can trade real-world currencies for virtual-world currency and vice versa. This means that the currency, goods, and services within the virtual-world marketplace have a corresponding real-world monetary value. The implication …

“Hands Off My Taxes!”: A Comparative Analysis Of Direct Democracy And Taxation, Amleto Cattarin

Amleto Cattarin

Abstract

The purpose of the article is to analyse the phenomenon of direct democracy related to fiscal matters. This research will be based on the experience of a number of European countries compared to one U.S. state, California, which was chosen due to Proposition 13, one of the classic examples of conflict between a state organization and its citizens. Failing a trustworthy relation that legitimates taxation, beyond the employment of rough power, common rhetoric shows the value of direct democracy against and at the expense of representative democracy. Politicians of several European countries have established, somewhat paternalistic legal systems in …

A Proposal To Adopt Formulary Apportionment For Corporate Income Taxation: The Hamilton Project, Reuven S. Avi-Yonah, Kimberly Clausing

Law & Economics Working Papers Archive: 2003-2009

The current system of taxing the income of multinational firms in the United States is flawed across multiple dimensions. The system provides an artificial tax incentive to earn income in low-tax countries, rewards aggressive tax planning, and is not compatible with any common metrics of efficiency. The U.S. system is also notoriously complex; observers are nearly unanimous in lamenting the heavy compliance burdens and the impracticality of coherent enforcement. Further, despite a corporate tax rate one standard deviation above that of other OECD countries, the U.S. corporate tax system raises relatively little revenue, due in part to the shifting of …

Review: A New Understanding Of Tax, Charles E. Mcwilliams

Charles E. McWilliams Jr.

This article is a review of Edward McCaffery's "A New Understanding of Tax." I originally wrote this paper as a final exam for Tax Policy with Professor Chorvat at the George Mason University School of Law, and while I cannot claim to have a particularly novel or enlightening view of this subject matter I do hope that this can serve as an acceptable primer for anyone interested in studying a progressive post-paid consumption tax system.

Lies, Damned Lies, And Statistics? Structured Settlements, Factoring, And The Federal Government, Laura J. Koenig

Indiana Law Journal

No abstract provided.

Naked And Covered In Monte Carlo: A Reappraisal Of Option Taxation, Eric D. Chason

Faculty Publications

The market for equity options and related derivatives is staggering, covering trillions of dollars worth of assets. As a result, the taxation of these instruments is inherently important. Moreover, the importance is made even more acute by the use of options in creating more complex transactions and in avoiding taxes. Consider an equity call option, which entitles, but does not obligate, its holder to buy stock at a set price at a set time in the future. Option theory gives us a way to break the option down into more fundamental units. For example, an equity call option over 10,000 …

Freakonomics And The Tax Gap: An Applied Perspective, Leslie Book

Working Paper Series

Over the past thirty years, a significant amount of research from a variety of social science disciplines has considered tax compliance. Economists, psychologists, and sociologists have contributed to the discussion, offering research and, at times, conflicting explanations regarding whether a person is likely to comply with his obligation to file an accurate tax return. The unifying theme among this research is a search for explanatory reasons which are the factors that lead to non-compliance. In broad terms, the economic models of tax compliance assume rational behavior, and that people will coldly consider compliance from the perspective as to whether the …

Freakonomics And The Tax Gap: An Applied Perspective, Leslie Book

Leslie Book

Over the past thirty years, a significant amount of research from a variety of social science disciplines has considered tax compliance. Economists, psychologists, and sociologists have contributed to the discussion, offering research and, at times, conflicting explanations regarding whether a person is likely to comply with his obligation to file an accurate tax return. The unifying theme among this research is a search for explanatory reasons which are the factors that lead to non-compliance. In broad terms, the economic models of tax compliance assume rational behavior, and that people will coldly consider compliance from the perspective as to whether the …

The Aches And Pains Of Transition To A Consumption Tax: Can We Get There From Here?, Daniel S. Goldberg

Faculty Scholarship

This article discusses probably the most significant obstacle to the adoption of a consumption tax: the negative effects on existing wealth that the transition from the income tax to most forms of a consumption tax would have. The Congressional Budget Office in its 1997 study posed the question, “How to Get There from Here.” The difficulty with transition and the changes in the tax law since the CBO study, however, prompt the more basic question: “Can we get there from here?” This article deals with this question by examining the effects of transition on existing wealth under a variety of …

Vague Concepts And Uncertainty In Tax Law: The Case Of Comparative Tax Judicial Review, Roberto P. Vasconcellos

Roberto P. Vasconcellos

What causes uncertainty in tax judicial review jurisprudence? Why is uncertainty a common problem to many different legal systems? Can we blame the changing jurisprudence or the unclear legal concepts found in courts decisions? Many schools of thought and intellectual traditions are almost identical in different countries. However, even among identical thinking it is not difficult to find cultural reasons for legal systems choosing a certain school of thought. Therefore, this Article takes familiar legal concepts such as public law, public interest and legitimate expectations and studies how they are applied, as well as how they should be applied by …

Patenting Tax-Related Legal Advice: A Step In The Wrong Direction, Yonatan Heisler

Yonatan Heisler

The patenting of tax planning strategies has started to attract a great deal of attention recently as an issue that carries with it important and far-reaching social policy and tax implications. The issue, however, is not just of interest to tax practitioners; it has also attracted the attention of Congress. In July of 2006, the House Committee on Ways and Means held a hearing to discuss whether tax planning strategies ought to be granted patent protection. Those testifying before the committee included IRS Commissioner Mark Everson, and General Counsel of the United States Patent and Trademark Office (USPTO), James Toupin. …

Patenting Tax-Related Legal Advice: A Step In The Wrong Direction, Yonatan Heisler

Yonatan Heisler

The patenting of tax planning strategies has started to attract a great deal of attention recently as an issue that carries with it important and far-reaching social policy and tax implications. The issue, however, is not just of interest to tax practitioners; it has also attracted the attention of Congress. In July of 2006, the House Committee on Ways and Means held a hearing to discuss whether tax planning strategies ought to be granted patent protection. Those testifying before the committee included IRS Commissioner Mark Everson, and General Counsel of the United States Patent and Trademark Office (USPTO), James Toupin. …

The Play's The Thing: A Theory Of Taxing Virtual Worlds, Bryan T. Camp

Bryan T Camp

The Play’s The Thing: A Theory of Taxing Virtual Worlds: Bryan T. Camp Abstract Taxation is shadow life. As our culture monetizes more and more life activities, the shadow grows. This article looks at the potential tax issues arising from a new life activity: online role-playing games in virtual worlds. Currently, some 12 million people regularly play such games and the number is growing. Exploring the reach of the Tax Code into virtual world transactions not only responds to the potentially practical needs of millions of U.S. taxpayers, it also permits a reevaluation of core principles of income tax as …

From The Dead Hand To The Living Dead: The Conundrum Of Charitable Donor Standing (Symposium), Evelyn Brody

All Faculty Scholarship

No abstract provided.