The Declining Allure Of Being “American” And The Proliferation Of Corporate Tax Inversions: A Critical Analysis Of Regulatory Efforts To Curtail The Inversion Trend, 2016 Washington University School of Law
The Declining Allure Of Being “American” And The Proliferation Of Corporate Tax Inversions: A Critical Analysis Of Regulatory Efforts To Curtail The Inversion Trend, John C. Hamlett
Washington University Law Review
In the realm of tax policy, within which there is rarely broad-based consensus, there are few topics as polarizing as corporate tax inversions. An inversion is a paper transaction in which a US corporation reincorporates abroad to realize strategic tax benefits, without actually transplanting its operations overseas. These transactions necessarily reduce the US corporate income tax base, because although an inverted corporation is still taxed the same amount on income earned within the United States, it will no longer have to remit tax payments to the US Department of the Treasury (“Treasury”) for income earned abroad. This reduction in the ...
Reconciling The Premium Tax Credit: Painful Complications For Lower And Middle-Income Taxpayers, 2016 University of Nevada, Las Vegas -- William S. Boyd School of Law
Reconciling The Premium Tax Credit: Painful Complications For Lower And Middle-Income Taxpayers, Francine J. Lipman, James E. Williamson
The Patient Protection and Affordable Care Act (ACA) makes available to certain middle and lower-income individuals a refundable tax credit, the Premium Tax Credit (PTC), designed to help them pay the premiums on their qualified health care plans. To achieve Congress’s goal of making health insurance affordable, the PTC is most often provided directly to an individual’s insurance provider each month in advance of actually claiming the PTC on the individual’s year-end annual tax return. Of the almost twelve million individuals who have enrolled in health insurance through the federal and state health exchanges in 2015, 85 ...
Valuation, Values, Norms: Proposals For Estate And Gift Tax Reform, 2016 Elisabeth Haub School of Law
Valuation, Values, Norms: Proposals For Estate And Gift Tax Reform, Bridget J. Crawford
Pace Law Faculty Publications
In their contributions to this Symposium, Professor Joseph Dodge, Professor Wendy Gerzog, and Professor Kerry Ryan offer concrete proposals for improving the existing estate and gift tax system. Professor Dodge and Professor Gerzog are especially interested in accuracy in valuation, and advance specific proposals with respect to split-interest transfers and family limited partnerships. Professor Dodge makes an additional proposal to improve the generation-skipping transfer tax system, an understudied area of the law. Professor Gerzog's Symposium contribution draws particular attention to the legal fiction on which the estate and gift tax marital deductions rely. She would restrict the availability of ...
Irresponsibly Taxing Irresponsibility: The Individual Tax Penalty Under The Affordable Care Act, 2016 University of Nevada, Las Vegas -- William S. Boyd School of Law
Irresponsibly Taxing Irresponsibility: The Individual Tax Penalty Under The Affordable Care Act, Francine J. Lipman, James Owens
In recent decades, Congress has used the federal income tax system increasingly to administer and deliver social benefits. This transition is consistent with the evolution of the American welfare system into workfare over the last several decades. As more and more social welfare benefits are conditioned upon work, family composition, and means-tested by income levels, the income tax system where this data is already systematically aggregated, authenticated, and processed has become the go-to administrative agency.
Nevertheless, as the National Taxpayer Advocate Nina Olson has noted there are “substantial differences between benefits agencies and enforcement agencies in terms of culture, mindset ...
The Perfect Process Is The Enemy Of The Good Tax: Tax's Exceptional Regulatory Process, 2016 University of Cincinnati College of Law
The Perfect Process Is The Enemy Of The Good Tax: Tax's Exceptional Regulatory Process, Stephanie Mcmahon
Faculty Articles and Other Publications
Many courts and academics critique existing tax exceptionalism or the ability of the federal income tax to be created, applied, or interpreted differently from other laws. Critics have successfully complained that the Treasury Department, and the IRS as a bureau of the Department, issues guidance implementing the Internal Revenue Code using different processes from those required by the Administrative Procedure Act (APA). At the same time, courts are increasing the level of deference given to this guidance to conform to that given other agencies. This article responds to these critics by urging they re-focus their attention on the objectives of ...
It Saves To Be Healthy: Using The Tax Code To Incentivize Employer-Provided Wellness Benefits, 2016 Indiana University Maurer School of Law
It Saves To Be Healthy: Using The Tax Code To Incentivize Employer-Provided Wellness Benefits, Hilary R. Shepherd
Indiana Law Journal
With lifestyle-related disease on the rise and an increasing number of employers being held responsible for providing health insurance to their employees, we as a society have incentives to promote wellness, even if only to cut health care costs. Part I of this Note outlines a brief history of employer-provided wellness benefits and provides a concise summary of the employer-provided wellness benefits available. Part II analyzes the relevant federal income tax law, specifically, the fringe benefits provision of the Internal Revenue Code, and concludes that under existing tax law, on-premises gym facilities do not yield any taxable income to employees ...
The Tax Lives Of Uber Drivers: Evidence From Online Forums, 2016 Boston College Law School
The Tax Lives Of Uber Drivers: Evidence From Online Forums, Diane M. Ring, Shu-Yi Oei
Boston College Law School Faculty Papers
In this Article, we investigate the tax issues and challenges facing Uber and Lyft drivers by studying their online interactions in three internet discussion forums: Reddit.com, Uberpeople.net, and Intuit TurboTax AnswerXchange. Using descriptive statistics and content analysis, we examine (1) the substantive tax concerns facing forum participants, (2) how taxes affect their driving and profitability decisions, and (3) the degree of user sophistication, accuracy of legal advising, and other cultural features of the forums.
We find that while forum participants displayed generally accurate understandings of tax filing and income inclusion obligations, their approaches to expenses and deductions were ...
Can Sharing Be Taxed?, 2016 Boston College Law School
Can Sharing Be Taxed?, Diane M. Ring, Shu-Yi Oei
Boston College Law School Faculty Papers
In the past few years, we have seen the rise of a new model of production and consumption of goods and services, often referred to as the “sharing economy.” Fueled by startups such as Uber and Airbnb, sharing enables individuals to obtain rides, accommodations, and other goods and services from peers via personal computer or mobile application in exchange for payment. The rise of sharing has raised questions about how it should be regulated, including whether existing laws and regulations can and should be enforced in this new sector or whether new ones are needed.
In this Article, we explore ...
Foreign Investors In U.S. Mutual Funds: The Trouble With Treaties, 2016 Fordham University School of Law
Foreign Investors In U.S. Mutual Funds: The Trouble With Treaties, Jeffrey M. Colon
The United States is generally a tax haven for foreign portfolio investors: the United States exempts from tax most U.S. source interest and capital gains, but taxes dividends from U.S. companies; tax treaties generally eliminate U.S. tax on interest and reduce the 30% statutory rate on dividends. Foreign investors in U.S. mutual funds have not been treated as favorably. Fund distributions (other than of net capital gains) were originally treated as taxable dividends, regardless of the fund’s underlying income. Interest or short-term capital gains earned by the mutual fund — which would have been tax exempt ...
Cross-Deductions In The Net Investment Income Tax Imposed On A Trust Or Estate With Separate Shares, 2016 California Western School of Law
Cross-Deductions In The Net Investment Income Tax Imposed On A Trust Or Estate With Separate Shares, Michael T. Yu
Part I of this article first provides a general overview of §§ 1411 and 663(c) and the interaction between them and the respective regulations thereunder and then proposes a revised regulation to clarify the relationship between and among the two sections and their regulations. Part II discusses the possibility of certain cross-deductions under § 1411, in conjunction with §§ 661, 662, and 663(c). Finally, Part III presents and discusses a proposed calculation and allocation, to the separate shares of a trust or estate, of income and deduction items entering into the computation of NII and DNI of the trust or estate.
The Hidden Costs Of Cliff Effects In The Internal Revenue Code And Proposals For Change, 2016 UC Hastings College of the Law
The Hidden Costs Of Cliff Effects In The Internal Revenue Code And Proposals For Change, Manoj Viswanathan
Cliff effects in the Internal Revenue Code trigger a sudden increase of federal tax liability when some attribute of a taxpayer—most commonly income—exceeds a particular threshold value. As a result, two taxpayers in nearly identical economic situations can face considerably different tax liabilities depending on which side of the triggering criterion they fall. The magnitude of the equity and efficiency costs associated with cliff effects is significant: cliff effects are attached to tax provisions amounting to hundreds of billions of dollars, the majority of which are targeted at low- and moderate-income taxpayers. Cliff effects have received little attention ...
The Tax Provisions Denying A Deduction For Illegal Expenses And Expenses Of Illegal Businesses Should Be Repealed, 2016 University of Michigan Law School
The Tax Provisions Denying A Deduction For Illegal Expenses And Expenses Of Illegal Businesses Should Be Repealed, Douglas A. Kahn, Howard Bromberg
Currently, the tax law denies a deduction for business expenses that violate a federal or state law (but only if the state law is generally enforced). In addition, losses, including business losses, cannot be deducted if they arise out of an illegal activity. For example, medical expenses are denied a deduction if they are illegal. Kickbacks, bribes, and rebates given in connection with the Medicaid or Medicare program are nondeductible. Any expenses, legal or not, incurred in connection with the conduct of a business of selling a controlled substance that is prohibited by federal law (or by the law of ...
The Social Boundaries Of Corporate Taxation, 2016 University of Colorado Law School
The Social Boundaries Of Corporate Taxation, Sloan G. Speck
Historically, the tax law distinction between corporate and conduit treatment drew primarily on doctrinal understandings, treating state-law corporations as corporate for tax purposes and classifying unincorporated legal entities based on their resemblance to conventional state-law corporations. More recently, commentators and Treasury have abandoned these doctrinal touchstones in favor of efficiency, broadly construed, as the guiding principle in determining an entity’s tax classification. This Article argues that, while important, efficiency considerations should not function as the sole arbiter of the boundary between corporate and conduit tax treatment. First, classical corporate taxation is, in many ways, deeply embedded within a larger ...
The Future Of The Cadillac Tax, 2016 University of Kentucky
The Future Of The Cadillac Tax, Kathryn L. Moore
Law Faculty Scholarly Articles
The Affordable Care Act includes a 40 percent excise tax on high-cost employer-sponsored health care coverage. Often referred to as the “Cadillac tax,” this excise tax is one of the most controversial elements of the Affordable Care Act.
Currently scheduled to go into effect in 2020, the Cadillac tax poses serious challenges and uncertainty for employers. On the one hand, recent estimates suggest that the Cadillac tax may hit as many as 20 percent of employers with health care plans in 2020. On the other hand, there is a serious question as to whether the tax will be repealed before ...
Tax Planning And Policy Drift, 2016 University of Colorado Law School
Tax Planning And Policy Drift, Sloan G. Speck
This Article proposes a framework for analyzing how private-sector legal interpretations influence public policy. Political scientists and legal scholars use the terms “bureaucratic drift” and “legislative drift” to describe how administrative agencies and future legislative coalitions affect public policy enacted by Congress. This Article identifies a third category of policy drift: “planning drift.” Planning drift describes deviations from an enacting legislature’s policy preferences that result from private experts’ interpretations of existing law. After Congress enacts a statute, the first people to interpret and apply the new legislation generally are not regulators or judges, but instead are private experts, such ...
Full Circle? The Single Tax Principle, Beps, And The New Us Model, 2016 University of Michigan Law School
Full Circle? The Single Tax Principle, Beps, And The New Us Model, Reuven S. Avi-Yonah
This paper will argue that while there is some innovation in BEPS, it is in fact more of a continuation that a sharp break with the past. Like Alexis de Tocqueville’s French Revolution, BEPS represents both continuity and change. In particular, the single tax principle has formed the theoretical basis of much of the international tax regime from the beginning. And it is in fact this continuity rather than any sharp change that gives the final BEPS package its promise to, as Secretary General Gurria also promised, “put an end to double non-taxation.”
Back To 1913?: The Ryan Blueprint And Its Problems, 2016 University of Michigan Law School
Back To 1913?: The Ryan Blueprint And Its Problems, Reuven S. Avi-Yonah
From the Revolutionary War to the late 19th century, the federal government was financed primarily through regressive tariffs on imported goods. The exception was the income tax enacted during the national emergency of the Civil War, which was allowed to expire in 1872. The rise of an industrial economy in the post- Civil War era led to significant increases in inequality, which the tariffs exacerbated by falling primarily on the working class. ‘‘Robber barons’’ like J.P. Morgan, Andrew Carnegie, and John D. Rockefeller did not consume most of their income, and their intangible wealth avoided state-level personal property taxes ...
The United States Tax Court - A Court For All Parties, 2015 Villanova Law School
The United States Tax Court - A Court For All Parties, T. Keith Fogg
T. Keith Fogg
Problematic Self-Directed Retirement Plan Activities, 2015 Unaffiliated
Problematic Self-Directed Retirement Plan Activities, David Randall Jenkins
David Randall Jenkins
U.S. Federal Income Taxation Of Individuals 2016, 2015 Cleveland State University