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Full-Text Articles in Law
The Carried Interest Standoff: Reaffirming Executive Agency Authority, Dean Galaro, Gregory S. Crespi
The Carried Interest Standoff: Reaffirming Executive Agency Authority, Dean Galaro, Gregory S. Crespi
SMU Law Review
This Article argues that, if reform is necessary, carried interest taxation should be amended by agency rulemaking and not by Congress. Much has already been said about carried interest, but this Article attempts to look through a new lens—legislative history. Carried interest presents a complicated question about the application of foundational partnership tax principles. It is an issue that has received popular attention only within the last decade. Since then, the face of reform has been efforts in Congress to pass an overly complex bill—Section 710. By looking back through the legislative history of carried interest, we begin to see …
Taxing Social Impact Bonds, Orly Mazur
Taxing Social Impact Bonds, Orly Mazur
Faculty Journal Articles and Book Chapters
An exciting new way to fund social services has recently emerged. This new financing mechanism, called a social impact bond (SIB), has the potential to help us tackle some of our nation’s most challenging social problems. Broadly speaking, a SIB is a type of “pay for success” contract where private investors provide the upfront capital to finance a social program, but only recoup their investment and realize returns if the program is successful. Like any new financing instrument, SIBs create numerous regulatory challenges that have not yet been addressed. One unresolved issue is the tax implications of a SIB investment. …
Social Impact Bonds: A Tax-Favored Investment?, Orly Mazur
Social Impact Bonds: A Tax-Favored Investment?, Orly Mazur
Faculty Journal Articles and Book Chapters
Social impact bonds (SIBs) have recently generated a lot of excitement nationwide as an innovative way to finance social projects. A SIB is a financing mechanism that uses private capital to fund social services, with the government only repaying investors their capital plus a potential return on investment if improved social outcomes are achieved. As such, it brings together the private, public, and non-profit sectors in a manner that unlocks an additional source of capital to fund social service providers, promotes innovation, encourages interagency cooperation, and creates more accountability. Despite these benefits, tax law likely hinders the development of SIB-funded …