Law Commons^™

The Guardians Of The New Internal Revenue Code, Douglas C. Michael

Law Faculty Scholarly Articles

The proliferation of electronic filing (e-filing) of income tax returns creates new problems and opportunities for the regulation of the tax return preparation industry. Now that e-filing is universal, the rules of the law are, for many taxpayers, the code of the tax software, not in the Internal Revenue Code. The natural consequences of universal e-filing are unremitting complexity in a tax code which is also used to deliver social benefits in the form of tax credits. This, combined with the polit¬ical pariah status of the Internal Revenue Service (IRS), makes it imperative that the IRS work with the tax …

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 On the other hand, there is a serious question as to whether the tax will be repealed before …

Electing Fairness: A Check-The-Box-Style Regime For Same-Sex Couples' Tax Filing Status, Jennifer Bird-Pollan

Law Faculty Scholarly Articles

In the wake of the United States Supreme Court's decision regarding the Defense of Marriage Act in United States v. Windsor, tax lawyers and those interested in tax policy immediately wondered what consequences this change would have to the United States' federal tax laws. The Internal Revenue Service issued a Revenue Ruling explaining the position it took regarding the case, which answered many questions for taxpayers whose lives were affected by the decision. Because the IRS announced that it would recognize same-sex marriages based on the state of celebration of the marriage rather than the state of residence of …

Who's Afraid Of Redistribution? An Analysis Of The Earned Income Tax Credit, Jennifer Bird-Pollan

Law Faculty Scholarly Articles

In the 2008 Presidential campaign, the American public was reminded time and again of the differences in the economic policies of the nominees: John McCain would cut taxes, and Barack Obama would raise them, although only on those earning over $250,000. In the final days of the campaign, the McCain camp accused Obama of proposing “redistribution,” and the Obama camp quickly denied that description. So why do presidential candidates run so quickly from the r-word? McCain’s senior policy advisor equated redistribution with socialism, but redistribution, in the form of the federal income tax system, is a central tenet of American …

A Diversity Theory Of Charitable Tax Exemption—Beyond Efficiency, Through Critical Race Theory, Toward Diversity, David A. Brennen

Law Faculty Scholarly Articles

What is the normative rationale for the federal income tax exemption for nonprofit charitable corporations? Even though the exemption dates back to 1894, Congress has failed to fully rationalize it. Though scholars and courts have attempted over the years to come up with a coherent rationale for the charitable tax exemption, their attempts are focused almost exclusively on economic efficiency. Thus, the charitable tax exemption is typically framed by noted tax scholars like Boris Bittker, Henry Hansmann, and others as an economically efficient means of providing certain goods and services to the public. Rationalizing the charitable tax exemption in economic …

President Bush's Personal Retirement Accounts: Saving Or Dismantling Social Security, Kathryn L. Moore

Law Faculty Scholarly Articles

President Bush has long been a proponent of investing a portion of payroll taxes in the private sector. For example, in 1999, then-Governor George Bush said to free-market crusader Stephen Moore, "I just want you to know ... that I'm really committed to these private investment accounts." In 2001, President Bush directed a 16-member bipartisan commission, the President's Commission to Strengthen Social Security, to formulate a plan for Social Security reform that included voluntary personal retirement accounts. But it was not until the beginning of his second term in office that President Bush began in earnest his crusade to fundamentally …

The Hidden Tax Trap Of I.R.C. Section 6672, Stephen J. Vasek Jr.

Law Faculty Scholarly Articles

Two recent decisions of the United States Supreme Court examined section 6672 of the Internal Revenue Code. In Slodov v. United States, the Court expressed its views on the personal liability of business managers for unpaid taxes on employee wages. Discharging such liability because of the personal bankruptcy of the business manager was considered in United States v. Sotelo. The focal point of these cases—section 6672 of the Internal Revenue Code—provides for the potential liability of business managers for the employees’ share of taxes on wages (hereinafter trust fund taxes).

Although Slodov and Sotelo are helpful in understanding …