Digital Commons Network^™

Norm-Based Remedies For Statutory Inequalities, Evan H. Caminker

Articles

Upon finding that a statute creates an unconstitutional inequality, courts face an intriguing remedial question: how to enjoin executive officials henceforth to implement the statute in a nondiscriminatory manner. There are almost always two options: “leveling up” to extend a statutory benefit or burden to the initially excluded group, and “leveling down” to withdraw the benefit or burden from the initially included group.

For decades, the Supreme Court has approached this remedial enterprise as if no substantive constitutional values guide the choice between leveling up and leveling down; so long as the remedy establishes prospectively equal treatment at any level, …

Periodic Adjustments — The Dialogue Continues, Reuven S. Avi-Yonah, Jeffery M. Kadet

Articles

Michael McDonald has continued an important dialogue that requires more attention from both taxpayers and the government. In reply to our recent article, McDonald has expressed his disagreement with a number of issues that each of us has adequately covered. We'll just have to agree to disagree on those matters, some of which will eventually play out in the courts. In this article, we will cover a few issues that McDonald has raised that we believe will be useful to this ongoing dialogue.

Can A Corporate Wealth Tax Happen?, Reuven S. Avi-Yonah

Articles

Economists Emmanuel Saez and Gabriel Zucman. They argued that a wealth tax would be a key policy tool to reduce wealth inequality and effectively tax the rich, could raise significant revenue, and could be enforced effectively. Other academics, like Wojciech Kopczuk, Natasha Sarin, Jeffrey Pennell, and Robin Morgan are more skeptical. In the legal literature, there has been an extensive discussion over whether a wealth tax can be constitutional. In Moore, the majority There have been numerous proposals recently to institute a wealth tax in the United States, either in addition to existing taxes or in lieu of some of …

Coca-Cola Redux: The Problematic Absence Of Comparables, Reuven S. Avi-Yonah

Articles

On June 25 a three-judge panel of the Eleventh Circuit Court of Appeals heard oral arguments in Coca-Cola v. Commissioner. It is very hard to predict outcomes from oral arguments, but two of the judges asked questions that suggested they were open to accepting the taxpayer’s “bait and switch” argument. They also seemed receptive to the treaty argument. Interestingly, there was less focus on the taxpayer’s marketing intangibles argument, which I regard as the better one.

"Because The President Said So:" Agency Reason Giving And Presidential Statements Of Will, Nina A. Mendelson

Articles

Reason giving has long been understood to legitimate administrative agency actions by assuring legal, nonarbitrary, stable, and well-considered decisions. It is core to the Administrative Procedure Act's process and judicial review provisions. But the obligation to give reasons is receiving a challenge from the political accountability side, as executive orders skyrocket and the Supreme Court moves towards unitary executive theory in decisions such as Trump v. Slaughter and Seila Law v. CFPB. In striking down independent agencies under Article II, the Court has emphasized that political accountability of agencies to the President is critical. Both the President and executive agencies …

Data Centers As Engines Of Corporate Tax Base Restructuring, Reuven S. Avi-Yonah, Domenico Imparato, Karen Sam

Articles

Globalization has eroded the corporate income tax by undermining both source-and residence-based taxation. Before the 1980s, large capital-exporting countries could impose relatively high tax rates on multinationals and extend taxation to low-taxed foreign income earned through controlled foreign corporations, as exemplified by the U.S. adoption of subpart F in the Revenue Act of 1962. That regime supported corporate tax revenues that reached roughly 25 percent of total U.S. receipts in the mid-20th century.

Globalization changed that equilibrium. Multinational corporations gained the ability to arbitrage national tax systems by relocating and reporting profits in low-tax jurisdictions. Active income largely escaped source …

Fixed Points For Fitted Lines, David L. Farnsworth

Articles

For many fitting methods for lines in the plane, each observation possesses an associated point in the plane, or at infinity for particular observations. These associated points are called “fixed points,” because properly chosen replacement points for the originally selected observation create other fitted lines that contain the same fixed point. Simple linear regression and orthogonal least-squares regression are investigated as examples. The phenomenon has been previously noted for simple regression, where the properly selected replacement points are related to regression diagnostics and the determination of outliers. Orthogonal regression lines are fundamental to principal component analysis. Mechanical devices for simple …

Some Results About Orthogonal Least-Squares Lines, Steven J. Kilner, David L. Farnsworth

Articles

A set of quantitative bivariate data is augmented with one additional point. Orthogonal least-squares fitting is used for the original set and the augmented set. The possible locations of the two lines, the points of means of the two sets, and the augmenting point are examined.

Mobility-Restricting Covenants In Business Contracts: The Case Of Franchising, Francine Lafontaine, Lorenzo G. Luisetto, J.J. Prescott

Articles

Several studies show that restrictive covenants in employment contracts, such as non-compete agreements, may affect employees in detrimental ways, including by reducing mobility and suppressing wages. While such concerns are real, these clauses also have the potential to serve legitimate business purposes by helping companies protect valuable information, which can encourage investment and training and enhance social welfare. This paper explores the use of several types of covenants, including non-competes but also confidentiality and post-relationship non-recruitment clauses, in franchise contracts, an important and accessible category of business contracts. Many of these contracts impose restrictive covenants on franchisees but also on …

Is Originalism Orthodoxy?, Neel Sukhatme

Articles

What theory of constitutional interpretation has the Supreme Court followed? We search Supreme Court opinions for a wide range of sources that originalists identify as central to their methodology, over the entire universe of cases beginning in 1791. We find that for much of Supreme Court history, conventional indicators of originalist practice--citations to Founding-era sources--are largely absent, raising questions about originalism's past orthodoxy. Originalist citation practices are absent for much of the 19th century and grow sharply in the late 20th century. The Article elaborates the implications of these findings for debates in constitutional law.

Implicit Support And The Arm’S-Length Standard, Reuven S. Avi-Yonah

Articles

The ongoing U.S. Tax Court litigation Eaton Corp. v. Commissioner raises significant questions regarding the application of the arm’s-length standard to intra group financing. Eaton concerns interest deductions claimed by Eaton US, the U.S. subsidiary of Eaton PLC, on intercompany loans from Eaton Rest of World (Eaton RoW), a foreign affiliate owned by Eaton PLC, and deductions for fees paid to Eaton RoW by Eaton US for guaranteeing Eaton US’s third-party debt. The IRS disallowed approximately $296 million in interest deductions and $237 million of guarantee fee deductions.

The principal issue is whether the arm’s-length standard requires consideration of implicit …

Taxing Ai In The Wake Of The Emergence Of Agentic Ai, Reuven S. Avi-Yonah, Herbert Snitz

Articles

This article addresses taxation measures to regulate AI agents (i.e., AI that is not fully under the control of humans, including both ANI and AGI). In each case, the focus is on what the agent’s capabilities would be, not on how it becomes capable of successfully performing its tasks (though the latter would likely be relevant to important philosophical questions, e.g., might robots achieve sentience or consciousness, and if so, would they have rights?). Regarding mirroring what we human beings can do, the hallmark of AGI is that it will not be task-specific (like ANI), but will possess broad capabilities, …

Can Laws Be Flexible? Rethinking Legislation For Innovation, Nicholson W. Price Ii, Nick K. Schneider, Ariel Dora Stem, Jochen K. Lennerz

Articles

Agile legislation adapts principles from agile software development to lawmaking, emphasizing iteration, multi-stakeholder feedback, and embedded revision. We outline this learning-oriented governance model using three case studies: Germany’s stepwise digital health legislation, the EU AI Act, and U.S. FDA user-fee reauthorization. These examples highlight legislative designs that enable structured generation of real-world data and evidence during implementation, informing regulatory interpretation and iterative refinement in rapidly evolving technological domains.

Public, Private, Acquired, Alexander I. Platt, Matthew T. Wansley

Articles

For the last quarter-century, IPOs have been declining. SEC officials usually attribute the decline to startups’ choices to stay private. But that explanation is incomplete. As startups grow, they face a three-way choice between going public, staying private, and being acquired, and they have increasingly chosen the third option. In this Essay, we show how securities regulation pushes startups towards acquisitions by increasing the cost of raising capital and accessing liquidity in both public and private markets. We consider how the trend towards acquisitions could reduce competition, innovation, opportunities for diversification, and transparency. And we offer suggestions for how the …

Preemption Of State Fraudulent Transfer Law By The Bankruptcy Code, David G. Carlson

Articles

The article argues that state law tort claims based on fraudulent transfers are preempted by the Bankruptcy Code. It contends that allowing such tort claims to persist interferes with a bankruptcy trustee's ability to achieve universal settlements and recover assets, as the trustee cannot guarantee immunity from third-party tort liabilities.

Owning The Al Revolution, George S. Georgiev

Articles

No abstract provided.

Preface To Volume 17, Issue 2, Peter A. Carfagna

Articles

No abstract provided.

Writing – Écriture, Peter Goodrich

Articles

This is the twentieth article in this series (and the fifth in volume 77).

Periodic Adjustments — Treaties And Other Issues, Reuven S. Avi-Yonah, Jeffery M. Kadet

Articles

In his May article, Michael McDonald, a former managing director at Ernst & Young and current adjunct professor at the University of Virginia School of Law, criticized the IRS’s recently announced method for applying the commensurate with income (CWI) requirement that addresses the widespread underpricing of intangibles.1 His analysis questioned the IRS’s interpretation of section 482. McDonald argues that, until 2025, Treasury and the IRS applied CWI in a manner consistent with the arm’s-length principle despite congressional misgivings about the arm’s-length principle that were not only expressed in the legislative history of the Tax Reform Act of 1986 but were …

Expert Asymmetry: Evidence From Securities Litigation, Adam Callister, Andrew Granato, Belisa Pang

Articles

Modern litigation often involves two separate, extra-legal features: (1) contingency fee arrangements with the plaintiff-side attorney, and (2) a “battle of the experts” where the outcome of the case rests on conflicting expert witness testimony. We construct a model to illustrate that when these features occur simultaneously, in contexts where plaintiff-side attorneys bear the cost of hiring experts upfront, defendants will spend systematically more than plaintiffs on hiring expert witnesses. Our model is motivated by hand-collected data from a decade of securities class action litigation, where we show that experts polarize into almost entirely plaintiff-side versus defense-side experts, that defense-side …

D-Methionine Improves Spatial Navigation And Attenuates Oxidative Stress And Amyloid Pathology In A Sex-Specific Manner., Mackenzie R Peck, Jenelle E Chapman, Tiarra Hill, Kathleen Quinn, Erol D Ikiz, Angel Lopez, Erin R Hascup, Chilman Bae, Kevin N Hascup

Articles

Background

Oxidative stress and maladaptive neuroimmune activation contribute to cognitive decline in Alzheimer's disease (AD) and represent therapeutic targets beyond amyloid-centered approaches.

Objective

To determine whether oral D-methionine (D-Met), a redox-active amino acid, reduces amyloid pathology and lipid peroxidation and confers disease-modifying benefits in AD models.

Methods

Male and female APP/PS1 and APP^NL−Fmice with advanced AD pathology received oral D-Met or vehicle. Behavioral assessments included locomotor activity and hippocampal-dependent spatial learning and memory. Amyloid burden, lipid peroxidation, peripheral metabolic, and inflammatory markers, and hippocampal microglial phenotypes were evaluated.

Results

D-Met did not alter locomotor or exploratory behavior but …

Taxation And Birthright Citizenship, Reuven S. Avi-Yonah

Articles

Under the 14th Amendment, individuals who are born in the United States are U.S. citizens and citizens of the state where they reside if they are “subject to the jurisdiction” of the United States. The debate surrounding birthright citizenship focuses on the meaning of jurisdiction in this context. The majority view is that it just means territoriality jurisdiction, so that anyone born within the United States is automatically a citizen regardless of the immigration status of their parents. The minority view is that jurisdiction is related to political allegiance (nationality jurisdiction), which is why children born to diplomats, members of …

Abundance And The Supreme Court, Nicholas Bagley

Articles

Scarcity mars much of American life. Housing prices in our most productive cities are out of control. The nation’s transportation infrastructure is aging and obsolete because it costs so much more to build here than in other developed countries. Meanwhile, China generates nearly three times as much solar energy as the United States, with the gap growing every year.

Why does the richest nation in the history of the world struggle so mightily to get stuff done? That’s the question that propels Ezra Klein and Derek Thompson’s 2025 bestseller Abundance, which galvanized what may be the hottest and most controversial …

Emotional Intelligence And Teamwork In A Ship’S Bridge : A Proposed Training Framework For Upskilling, Sofia Kallou, Nikitas Nikitakos, Dimitrios A. Papachristos, Dimitrios Dalaklis, Momoko Kitada

Articles

The notion that computers equipped with software and artificial intelligence (AI) applications can effectively replace human intelligence is under the existing paradigm of operations. This is the leading facilitator of task automation on board a ship to fulfill various jobs and is often supported by numerous scientists/academics who contribute to gaining today’s momentum in public opinion. The discourse of Industry 4.0 in the maritime domain, however, tends to focus heavily on technological contexts and overlooks socio-economic contexts. This gap is evident in the strong emphasis on technical and digital skills for future maritime professionals. This paper, therefore, argues that the …

William K. Hartmann, Scientist, Artist, Pioneer Of Planetary Science, Adam Eisenberg

Articles

For more than six decades, William K. Hartmann has helped shape modern planetary science, from pioneering crater-count dating to developing the leading theory of the Moon's formation. He has also created some of the most enduring artistic visions of other worlds. Adam Eisenberg caught up with him on the eve of his 87th birthday.

Technology Before, During, And After Incarceration: Current Product Landscape, Sociotechnical Concerns, And Legal Considerations In The U.S. Context, Yael Eiger, Taylor Hansen, Teanna Barrett, Jevan Hutson, Bryce Clayton Newell, Franziska Roesner

Articles

Emerging technology, including AI, is proliferating throughout the U.S. carceral system. These technologies are marketed to prisons and police departments and then procured using taxpayer money. Previous investigative reporting has exposed troubling kickback schemes, unconstitutional data collection practices, and biased algorithmic outcomes in a handful of prominent technologies (e.g., Flock, Palantir, Clearview AI, COMPAS). In this work, we consider the broader ecosystem of carceral technologies: we catalog 122 products from 53 companies selling technology to carceral institutions. In a collaboration among computer science, law, and surveillance studies scholars, we surface sociotechnical, ethical, and legal concerns related to the use and …

Feedback Loops: What Am I Missing?, Patrick Barry

Articles

In May, 2024, The Wall Street Journal published an article titled “For Conversations You Dread, Try a Chatbot.” Here are the opening lines: Many people worry about the outsize role that AI may eventually play in our lives. But what if employing an AI program could actually help us with issues that cause fear and anxiety? We’ve found that it can be a surprisingly effective tool for figuring out how to approach emotionally charged conversations.

Ai, Medicine, And Social Determinants Of Health Data, Ryan Doyloo, Nicholson Price

Articles

This article examines how medical AI systems are incorporating SDoH data and the governance challenges that follow. The authors show that while SDoH integration can enhance clinical workflows and predictive accuracy — potentially improving outcomes for underserved populations — it also introduces acute risks of proxy discrimination, where facially neutral variables replicate protected characteristics. Surveying U.S., EU, and international frameworks, the authors argue that existing regimes lack clear ex ante guidance to distinguish beneficial from harmful uses of SDoH data. In response, they advance post-market monitoring as a pragmatic and scalable pathway: generating real-world, SDoH-stratified evidence that can support enforcement, …

Algorithmic Tax Ownership, Young Ran (Christine) Kim, Dmitry Erokhin

Articles

Tax ownership is a crucial concept for determining tax liabilities, compliance, and enforcement. However, neither the courts nor the IRS has provided clear guidance on how to analyze it. Since the Supreme Court first outlined a twenty-six-factor test for determining tax ownership in Frank Lyon Co. v. United States in 1978, this multifactor test has remained largely unchanged, and there has been no further guidance from the courts or the IRS to this day. Even tests with shorter lists of factors only add to the confusion regarding compliance and enforcement, as there is no clarity on which factors are most …

The Corporate Restructuring Machine: Introducing An Open Platform Approach To Workouts, Horst Eidenmüller, Jared Mayer

Articles

Out-of-court corporate reorganizations, or “corporate workouts,” allow dispersed investors with differing interests to coalesce and strike deals to successfully reorganize distressed companies. Corporate workouts, however, suffer from a host of well-known problems, creating “process fragility.” Current bargaining dynamics limit the instances in which corporate workouts can be used, narrow the kinds of deals that can be made, and invite opportunistic and other socially costly behavior. Yet the Artificial Intelligence (AI) revolution is here; how can it help parties navigate corporate workouts?

In this Article, we argue that AI is well situated to help increase the efficiency of corporate workouts. Based …