Tax Law Commons^™

The Global Corporate Minimum Tax And Mne Home Countries, Reuven S. Avi-Yonah

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This Perspective explores the implications for the home countries of large MNEs of the agreement reached by over 140 countries in 2021 to enact a corporate minimum tax of 15%. It argues that the corporate minimum tax complements the trend to reduce the negative impact of unfettered globalization on labor, and it protects the ability of home countries to finance a robust social safety net. Home countries should adopt the corporate minimum tax, and that includes the US, which last year failed to adapt its Global Intangible Low-Taxed Income approach to the corporate minimum tax.

The First Us Tax Treaty And Its Influence, Reuven S. Avi-Yonah

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In 1945, the US negotiated a tax treaty with the UK.1 This treaty was based on the London model, which was the last contribution of the League of Nations to international tax. Since it was a treaty between the two most important economies in the world, it precipitated the post-war rise in tax treaty negotiations. It also was similar to the first OECD model of 1963. In general, with a few exceptions (citizenship-based taxation, residence of corporations, limitation on benefits) the US models of 1981, 1996, 2006 and 2016 closely resemble the OECD model. This is not surprising given the …

The New International Tax Framework: Evolution Or Revolution?, Reuven S. Avi-Yonah

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On July 1, 2021, 130 countries signed on to a new framework for reforming international corporate taxation. This outcome, which still needs to be finalized and implemented in national legislation, represents the culmination of over a decade of attempts to bring the 100-year old international tax regime into the 21st century. This Insight will explain the background to the new framework and assess its prospects for success.

Response To 'Reverse Al Capone-Ism' And The Tax Treatment Of Marijuana Businesses, Douglas A. Kahn, Howard J. Bromberg

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Mr. Silverberg’s comment stresses that the proponents of the legalization of marijuana have not been able to convince Congress to legalize it, and so it is appropriate for Congress to penalize trafficking in that drug. Apparently, he sees our contention that the penalty adopted in I.R.C. § 280E is irrational and contravenes established punitive jurisprudence as a backdoor attempt to accomplish indirectly, by weakening the penalties on the marijuana businesses, what has not been able to be accomplished by those seeking its federal legalization. That was not the motive for our proposal and is not a fair reading of our …

Response To Dude, Where's My Deduction?, Douglas A. Kahn, Howard J. Bromberg

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Mr. Pullin’s thesis is that marijuana should be excluded from § 280E when it is operated legally under state law. However, his preferred solution is that the federal government remove marijuana from Schedules I and II of the Controlled Substances Act of 1970 (CSA), thereby legalizing it for federal law purposes. Either action would exclude the marijuana business from § 280E.

9th Circ. Got Cost-Sharing Right In Altera V. Commissioner, Reuven S. Avi-Yonah

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On June 7, the U.S. Court of Appeals for the Ninth Circuit released its long-awaited opinion in Altera Corp. v. Commissioner. Like its predecessor, the new panel chosen after Judge Stephen Reinhardt's death reversed the U.S. Tax Court and held that the regulation requiring multinationals that enter into a qualified cost-sharing agreement, or QCSA, to share the cost of employee stock options is valid.

International Financial Centers And The World Economy, James R. Hines Jr.

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International financial centers (IFCs) are countries and territories with low tax rates and other features that make them attractive investment locations. These properties of IFCs occasionally raise concerns that they may erode tax collections, divert economic activity, and otherwise burden nearby high-tax countries. A large body of economic research over the last 15 years considers these issues, with findings that point sharply in the opposite direction: the evidence strongly suggests that the policies of IFCs contribute to investment, employment, and the efficient functioning of markets and government policies in other countries.

IFCs contribute to economic activity by improving the potential …

Senator Mccain’S Corporate Tax Proposals: A Critical Examination, Reuven S. Avi-Yonah

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Senator John McCain (R-AZ) has proposed two major changes to the corporate tax code: cutting the corporate tax rate from 35 percent to 25 percent and allowing corporations to deduct the full cost of investments in technology and equipment in the first year, an accounting process known as expensing. The first proposal aims to enhance U.S. economic competitiveness, create jobs, and increase wages. The second proposal aims in particular to boost capital expenditures and “reward investment in cutting-edge technologies.”

Both measures, if enacted by Congress, would greatly alter the role of corporate revenues in our tax system. Corporate taxes account …

Senator Mccain's Corporate Tax Proposals A Critical Examination, Reuven S. Avi-Yonah

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Senator John McCain (R-AZ) has proposed two major changes to the corporate tax code: cutting the corporate tax rate from 35 percent to 25 percent and allowing corporations to deduct the full cost of investments in technology and equipment in the first year, an accounting process known as expensing. The first proposal aims to enhance U.S. economic competitiveness, create jobs, and increase wages. The second proposal aims in particular to boost capital expenditures and “reward investment in cutting-edge technologies.”1

Introduction To Comparative Fiscal Federalism: Comparing The European Court Of Justice And The Us Supreme Court's Tax Jurisprudence, James R. Hines Jr.

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This volume brings together scholars from both sides of the Atlantic to consider federalist tax jurisprudence as practiced in Europe and the United States. These essays display a broad range of shared concerns, which is not to say that the scholars agree on all points of substantive policy and interpretation. What can be said is that there is general agreement that the exercise of comparing the tax jurisprudence of the European Court of Justice and the US Supreme Court is likely to be informative and beneficial to all concerned.

Preface To Comparative Fiscal Federalism: Comparing The European Court Of Justice And The Us Supreme Court's Tax Jurisprudence, Reuven S. Avi-Yonah

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In October 2005, a group of distinguished tax experts from both the European Union and the United States convened at the University of Michigan Law School for a conference on 'Comparative Fiscal Federalism: Comparing the US Supreme Court and European Court of Justice Tax Jurisprudence.' The conference was sponsored by the Law School, the European Union Center, and Harvard Law School's Fund for Tax and Fiscal Research. Attendees from Europe included Michel Au jean, the principal tax official at the EU Commission, Servaas van Thiel, chief tax advisor to the EU Council, Michael Lang (Vienna) and Kees van Raad (Leiden), …

Do Different Types Of Hospitals Act Differently?, Jill R. Horwitz

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This essay is based on testimony delivered before the U.S. House of Representatives Committee on Ways and Means on May 26, 2005.

Ifa Branch Report: United States (Trends In Company / Shareholder Taxation: Single Or Double Taxation?), Reuven S. Avi-Yonah

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United States IFA Branch Report on Trends in Company / Shareholder Taxation: Single or Double Taxation?

Principles That Should Govern In The Framing Of Tax Laws, Thomas M. Cooley

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"The foregoing paper was prepared for, and read before, the American Social Science Association, at its meeting in Cincinnati on April 22, 1878. It is not, as will be seen, a discussion of legal questions, but of questions in political economy. Still, at this time, when attention is very generally being directed to the principles of taxation, it will be found not wanting in practice interest to the legal profession." Professor Cooley takes on the problem of suitable and just taxation, a problem "forever demanding solution, but never solved." How do we set equitable rates based on personal valuation for …