Tax Law Commons^™

Condemnation Without Justification, Douglas A. Kahn

Articles

On August 6-8, 2007, Prof. Neil Buchanan posted in Michael Dorf’s blog (http://michaeldorf.org/; for the blog entry regarding the death tax, see http:// michaeldorf.org/2007/08/dishonest-tax-rhetoric-part-3- of-3.html) a three-part series on what he deemed to be examples of political use of terminology to describe tax issues in a manner that is likely to mislead the public. Prof. Buchanan described this practice as ‘‘dishonest tax rhetoric.’’ He awarded first, second, and third prizes for the most egregious examples of dishonest rhetoric. I, however, found no objection to the usages he considered to be the two worst examples. Let us consider his first and …

It-Apas - Vertical Harmonization Of Transfer - Pricing Standards, Richard Thompson Ainsworth

Faculty Scholarship

The World Customs Organization (WCO) and the Organization of Economic Cooperation and Development (OECD) have begun considering the harmonization of transfer pricing norms among income tax, customs and VAT regimes. Two conferences have been organized in May of 2006 and 2007.

These conferences have concluded so far: (a) that more analysis is needed; (b) that harmonization will require adjustments on all sides; and (c) that pilot projects (real world statutory and administrative efforts to harmonize) or case studies in harmonization (hypothetical fact patterns) are needed to facilitate consideration. This paper assesses the three basic paths being pursued at the present …

If Major Wars Affect (Judicial) Fiscal Policy, How & Why?, Nancy Staudt

Faculty Working Papers

This paper seeks to identify and explain the effects of major wars on U.S. Supreme Court decision-making in the context of taxation. At first cut, one might ask why we should even expect to observe a correlation between military activities and judicial fiscal policy. After all, the justices have no authority whatsoever to adopt funding laws intended to relieve the budgetary pressures that tend to emerge in times international crisis. The Court, however, is able to contribute to the wartime revenueraising efforts indirectly by adopting a pro-government stance in the cases it decides in wartime periods. As the probability of …

Amicus Curiae Brief In Support Of Petitioner, Service Vision Plan Inc. V. United States Case No. 08-164, Darryll K. Jones

Amicus Briefs

No abstract provided.

The Individual Alternative Minimum Tax And The Intersection Of The Bush Tax Cuts: A Proposal For Permanent Reform, Gabriel Aitsebaomo

Akron Tax Journal

The foregoing article begins with a critical examination of the AMT, its purpose, policy rationale, and the manner that it is calculated. Next, the article discusses the mushrooming number of individuals subject to the AMT, and the author posits that the AMT, in its current form, is neither achieving its intended purpose nor fulfilling its policy objective given the increasing number of unintended middle and upper middle class taxpayers subject to the tax. Next, the author critically examines the Bush tax cuts from 2001 to 2004, and concludes that the Bush tax cuts, and the fact that the AMT parameters …

The Quest To Tax Interest Income: Stages In The Development Of International Taxation, Ilan Benshalom

Faculty Working Papers

The Article offers a new perspective on the way international income tax has developed from its nascency, 85 years ago, to the present day. Its main claim is that, due to the lack of a clear normative tax agenda, trade considerations unduly eroded the income tax base. Such trade considerations highlight the importance of reducing tax obstacles on trade and investment to liberalize and integrate international markets. These considerations penetrated international income tax discourse during the Cold War period, when liberalizing trade was part of a broader western agenda to establish dominance through the liberalization of international markets. The Article …

A Comprehensive Solution For A Targeted Problem: A Critique Of The Eu’S Home State Taxation And Ccctb Initiatives, Ilan Benshalom

Faculty Working Papers

This Article examines the European Commission's Home State Taxation and CCCTB initiatives. It argues that both proposals undermine the long-term objective of attaining a consolidated European corporate tax regime. It suggests an alternative strategy, which offers a comprehensive formulary-tax-allocation-solution in one of the hard to tax sectors, such as the financial sector. This strategy requires more efforts and political risk-taking, but would better promote the long-term objective of a consolidated EU corporate tax regime.

An edited version of this article is scheduled to be published in a future issue of European Taxation (an IBFD publication).

Fifteen And Thirty Five--Class Warfare In Subchapter K Of The Internal Revenue Code: The Taxation Of Human Capital Upon The Receipt Of A Proprietary Interest In A Business Enterprise, Philip F. Postlewaite

Faculty Working Papers

Service providers (aka executives) to partnerships and to corporations confront a number of choices as to how their compensatory arrangement may be structured and the tax consequences thereof. In the simplest case, an individual may render services to an enterprise in return for cash payments over the period of service. In this non-equity setting, the issue is straightforward and non-controversial. The service provider is treated as receiving ordinary income for services rendered. The return on his or her expenditure of human capital is taxed at progressive rates.

Once the relationship between the service provider and the enterprise becomes more complicated …

The Quest To Tax Financial Income In A Global Economy: Emerging To An Allocation Phase, Ilan Benshalom

Faculty Working Papers

The taxation of the income derived from financial assets and transactions was always a daunting black hole in the income tax regime. In an integrated global market, tax authorities find it hard to tax financial income because of the high demand for financial investments and the mobility, fungibility, and tax-sensitivity of financial assets. Many of the current approaches to solving international tax allocation problems fail to see that financial transactions present special challenges and therefore their allocation treatment requires a special solution. The Article focuses on the most conceptually intriguing and significant problem associated with the allocation of financial income: …

Tax Patents: At The Crossroads Of Tax And Patent Law, Linda M. Beale

Law Faculty Research Publications

No abstract provided.

Tax Interpretation, Planning, And Avoidance: Some Linguistic Analysis, Menahem Pasternak, Christophe Rico

Akron Tax Journal

No abstract provided.

To Tax Or Not To Tax - That Is The Question In The Midst Of Murphy V. I.R.S., Margarita R. Karpov

Akron Tax Journal

This note examines § 104(a)(2) and the D.C. Circuit decision in Murphy v. I.R.S. focusing on the need for further guidance on taxation of personal damages. Part II inspects the background of taxation generally and § 104(a)(2) specifically. Additionally, Part II looks at the cases that shaped taxation of personal injury awards and Congress's interpretation of this taxation. Part III discusses the background and judicial response to Murphy's complaint, including the Secretary of Labor's findings, Administrative Law Judge's recommendations, the District Court decision, and the D.C. Circuit arguments and decision. Part IV assesses the reasoning of the D.C. Circuit's decision, …

Policy And Theoretical Dimensions Of Qualified Tax Partnerships, Bradley T. Borden

Faculty Scholarship

No abstract provided.

God, Gaia, The Taxpayer And The Lorax: Standing, Justiciability, And Separation Of Powers After Massachusetts And Hein, Jonathan H. Adler

Faculty Publications

The Supreme Court decided two important standing cases during the October 2006 term: Hein v. Freedom from Religion Foundation and Massachusetts v. EPA. The latter is important for what it did, the former for what it did not do. Whereas Hein hewed closely - perhaps too closely - to prior standing precendents, the Massachusetts decision substantially departed from existing precedent and established a new doctrine of special solicitude to state standing. Both decisions involved generalized grievances about federal government policies that affect citizens as a whole, but point in opposite directions. In many respects the opinions are in significant tension …

Analyzing The Schizoid Agency: Achieving The Proper Balance In Enforcing The Internal Revenue Code, Richard Lavoie

Akron Tax Journal

The purpose of this article is to examine the considerations that should influence the development of appropriate controversy position standards for the Service. In this regard it is crucial to understand the inherent duality in the Service's role. On one hand it is charged with enforcing the Internal Revenue Code (the "Code"), and as a result it attempts to maximize the collection of all legally owed taxes. On the other, the Service is charged with maintaining the efficient and fair operation of the tax system as a whole. The United States federal income tax system is premised on voluntary taxpayer …

Fairness And Taxation: The Law Of Deferred Income Recognition For The Members Of Agricultural Cooperatives, Kathryn J. Sedo, Mychal S. Brenden

Akron Tax Journal

This Article examines the application of the principles of income recognition and deferral to agricultural cooperatives and suggests a resolution to current inconsistencies in the law. Recent decisions have brought into question the ability of cooperative members to utilize both the ISA and deferred income agreements. This Article asserts that cooperative members can and should be able to take advantage of such options. Part I provides a general background on agricultural cooperatives and sets out the current legal framework for income recognition and deferral. Part II analyzes the current state of the law in regard to the treatment of cooperatives …

The New Retiree Health Vebas, Kathryn L. Moore

Law Faculty Scholarly Articles

Granted tax exempt status since 1928, Voluntary Employees' Beneficiary Associations (VEBAs) have received considerable attention since the fall of 2007 when General Motors, Ford, and Chrysler reached separate landmark agreements with the United Auto Workers union pursuant to which the companies agreed to contribute billions of dollars to VEBAs in exchange for transferring their retiree health care liabilities to the VEBAs. Specifically, General Motors agreed to contribute $31.9 billion while Ford agreed to contribute $13.6 billion, and Chrysler agreed to contribute $11 billion. Sometimes referred to as "defeasance" VEBAs, these "new," "stand-alone" retiree health VEBAs, differ significantly from traditional VEBAs …

Partnership Tax Allocation And The Internalization Of Tax-Item Transactions, Bradley T. Borden

Faculty Scholarship

No abstract provided.

Carbon Tax: Ready For Prime Time?, Michael J. Zimmer

Sustainable Development Law & Policy

No abstract provided.

Carbon Taxation In British Columbia, David G. Duff

All Faculty Publications

Among alternative public policies to reduce emissions of carbon dioxide and other greenhouse gases (GHGs), environmental taxation represents a promising but often under-utilized approach-particularly in North America where the introduction of any new tax involves enormous political challenges. In Canada, however, British Columbia became the first North American jurisdiction to implement a consumption-based environmental tax specifically designed to reduce GHG emissions when BC's provincial government enacted a carbon tax effective July 1, 2008.

This paper provides a general overview and initial evaluation of British Columbia's carbon tax, explaining the background to the announcement of the tax in the Provincial Government's …

Baby Ka-Boom! Coming Developments In Erisa Litigation Due To Social, Demographic, And Financial Pressures From The Baby Boom Generation, 41 J. Marshall L. Rev. 1037 (2008), Craig C. Martin, Matthew J. Renaud, Douglas A. Sondgeroth

UIC Law Review

No abstract provided.

The Future Of Social Security: Principles To Guide Reform, 41 J. Marshall L. Rev. 1061 (2008), Kathryn L. Moore

UIC Law Review

No abstract provided.

Retirement In A Defined Contribution Era: Making The Money Last, 41 J. Marshall L. Rev. 1091 (2008), David Pratt

UIC Law Review

No abstract provided.

European And American Issues In Employee Benefits Law Compared, 41 J. Marshall L. Rev. 1189 (2008), Yves Stevens

UIC Law Review

No abstract provided.

The Vesting, Modification, And Financing Of Public Retiree Health Benefits In Light Of New Accounting Rules, 41 J. Marshall L. Rev. 1147 (2008), John Sanchez

UIC Law Review

No abstract provided.

Topping V. Commissioner: An Example Of How An Equestrian Taxpayer Can Utilize "Single Activity" To Preclude The Irs "Hobby Loss" Challenge, Anna I. Garcia

Kentucky Journal of Equine, Agriculture, & Natural Resources Law

No abstract provided.

Time Is Of The Essence: Seize The Opportunity For Fulfillment In 2009, Francine J. Lipman

Scholarly Works

No abstract provided.

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

Other Publications

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

Conservation Easements And Climate Change, Daniel L. Aaronson, Michael B. Manuel

Sustainable Development Law & Policy

No abstract provided.

Comment On Yin, Reforming The Taxation Of Foreign Direct Investment By Us Taxpayers, Reuven S. Avi-Yonah

Articles

In this excellent article, George Yin addresses an important proposal by the President's Advisory Panel on Federal Tax Reform. The Advisory Panel proposed that the United States should permanently switch from taxing the parent corporation of U.S. multinationals on worldwide income to a modified territorial regime under which dividends paid out of active business income would be exempt from U.S. tax.' The Joint Committee on Taxation made a similar recommendation.2