Taxation-Federal Commons^™

Special Use Valuation Under The Internal Revenue Code: Does It Matter Now And Will It Matter In The Future?, Rusty Wade Rumley

Kentucky Journal of Equine, Agriculture, & Natural Resources Law

No abstract provided.

Abusive Tax Practices: The 100-Year Onslaught On The Tax Code, 17 Barry L. Rev. 179 (2012), Arthur Acevedo

UIC Law Open Access Faculty Scholarship

This article explores the actions taken by tax protesters and aggressive tax planners, and the response by Congress. It also examines whether Congress has taken sufficient action to curb abusive taxpayer practices. The thesis of the article is that Congress's faint-hearted responses to abusive taxpayer conduct are untimely, inefficient, and ineffective. Congress's weak responses since the inception of the Code have contributed to a culture of income tax avoidance and a growing sense of taxpayer frustration with income tax laws. Part II examines the culture of tax avoidance in the U.S. and how this attitude has manifested itself in our …

Responsible Profitability - Not On My Balance Sheet, 61 Cath. U. L. Rev. 651 (2012), Arthur Acevedo

UIC Law Open Access Faculty Scholarship

Many free-market capitalists believe in the syllogism that if a free market results in progress, and if progress is good, then by definition a free market must be good. Two hundred years of economic development support this proposition. The capitalist model, which is premised on free-market ideology, is credited with producing many of the riches enjoyed by society as a whole. Indeed, the pursuit of economic freedom ranks among the primary motivations for the founding of the United States. The corporation has enabled that pursuit and can be credited with greatly contributing to the advancement of free-market capitalism.

Proponents of …

The Use Of Federal Law To Curb Excessive Executive Compensation: Lessons In Past Failures And Lessons For The Future, 57 Vill. L. Rev. 551 (2012), Kathryn J. Kennedy

UIC Law Open Access Faculty Scholarship

When one thinks of the use of legislative power to curb the size and the type of compensation paid to executives, one normally thinks such power is reserved to the states. That is, one tends to think that regulating corporate governance falls within traditional state police powers. However, while state courts have been willing to review the processes boards of directors use in setting the size and type of executive compensation, they have been less willing to review the actual results of such decisions. Hence, it is no shock that Congress continues to dabble in the area of corporate governance …

Tax Exceptionalism: Wanted Dead Or Alive, Gene Magidenko

University of Michigan Journal of Law Reform Caveat

Tax law has just not been the same since January 2011. Did Congress pass earthshaking legislation affecting the Internal Revenue Code? Did the IRS dramatically change regulations? If only it were that exciting. Instead, eight jurists sitting at One First Street in our nation’s capital transformed tax law in a less bloody, but no less profound, way. The thought must have gone through many a tax mind – is tax exceptionalism dead?

Our Bodies, Our (Tax) Selves, Bridget J. Crawford

Elisabeth Haub School of Law Faculty Publications

This Article considers important consequences of the commodification of human reproduction. Anyone who has opened a campus newspaper has seen advertisements seeking to match an infertile couple with a young woman who will “donate” her egg (in return for a fee). Some college-age men earn thousands of dollars through regular visits to a sperm bank. The characterization of human ova and sperm cells as transferrable “property” is the very foundation upon which the entire fertility industry rests. But the law of donative transfers has largely ignored the commercial market for human reproductive material. This Article considers how courts and the …

Transfer Pricing Disputes In The United States, Reuven S. Avi-Yonah

Book Chapters

In 1988, the US Treasury Department published a study of inter-company pricing (the 'White Paper') that included the following endorsement of the so-called arm's length standard (ALS) for examining the reasonableness of transactions between related parties for tax purposes: The arm's length standard is embodied in all U.S. tax treaties; it is in each major model treaty, including the U.S. Model Convention; it is incorporated into most tax treaties to which the United States is not a party; it has been explicitly adopted by international organizations that have addressed themselves to transfer pricing issues; and virtually every major industrial nation …

The Tax Revenue Capacity Of The U.S. Economy, James R. Hines Jr.

Book Chapters

The United States imposes smaller tax burdens than do other large high-income countries, its 24.8 percent ratio of tax collections to GDP in 2010 representing the lowest fraction among the G-7. The United States also differs from other G-7 countries in relying relatively little on expenditure-type taxes. It follows that there is significant unused tax capacity in the United States that could be deployed to pay the country’s debts, but that the most promising source of additional tax revenue is expenditure taxation that is widely perceived to have very different distributional features than the income taxes on which the U.S. …

Recent Developments In Federal Income Taxation: The Year 2011, Martin J. Mcmahon Jr., Ira B. Shepard, Daniel L. Simmons

UF Law Faculty Publications

This recent developments outline discusses, and provides context to understand the significance of, the most important judicial decisions and administrative rulings and regulations promulgated by the Internal Revenue Service and Treasury Department during the most recent twelve months - and sometimes a little farther back in time if we find the item particularly humorous or outrageous. Most Treasury Regulations, however, are so complex that they cannot be discussed in detail and, anyway, only a devout masochist would read them all the way through; just the basic topic and fundamental principles are highlighted - unless one of us decides to go …

The Individual Mandate And The Taxing Power, Erik M. Jensen

Faculty Publications

This article, prepared for a symposium at the Salmon P. Chase College of Law, Northern Kentucky University, considers whether the Taxing Clause provides an alternative constitutional basis, as some have recently argued, for the individual mandate in the Patient Protection and Affordable Care Act of 21 - the requirement, going into effect in 214, that most individuals acquire satisfactory health insurance or pay a penalty. The article concludes that the Taxing Clause arguments are misguided. At best, the Clause can provide authority for the penalty, not for the mandate as a whole. Furthermore, the article questions whether the penalty will …

Tax Court Appointments And Reappointments Improving The Process, Danshera Cords

University of Richmond Law Review

This article explores the problems with the appointment and reappointment process of judges to the United States Tax Court, particularly focusing on the recent politicization of the process. Until 1992, the process ensured the appoint-ment of only well-qualified judges to the Tax Court bench. However, beginning with the administrations of Presidents William J. Clinton and George W. Bush, the President infused politics into the nomination process, causing the process to slow and creating vacancies on the court. Such delays threaten the court's effectiveness and disrupt its operations. To solve this problem, the author endorses changing the statute to allow Tax …

Increased Tax Liability Awards After Eshelman: A Call For Expanded Acceptance Beyond The Realm Of Anti-Discrimination Statutes, Eirik Cheverud

NYLS Law Review

No abstract provided.

Giving Up Your Tax Refund To Keep It: Tax Prepayment In The Context Of The Bankruptcy Estate, C. D. Bradley

Kentucky Law Journal

No abstract provided.

Location, Location, Location: Using Cost Of Living To Achieve Tax Equity, James M. Puckett

Faculty Scholarship

All other things being equal, the federal income tax ignores whether the taxpayer lives in a relatively affordable or expensive location. This approach can lead to unfairness; moreover, special deductions for the taxpayer’s actual living expenses, such as home mortgage interest and state and local taxes, do not solve the problem. Tax law scholars have generally been quick to dismiss the equity issues based on assumptions about taxpayer mobility. The existing literature would tax comparable workers equally, regardless of salary and living costs. This approach would unfairly equate differently situated workers. This Article questions the assumption of taxpayer mobility, considers …

Rationally Cutting Tax Expenditures, Gregg D, Polsky

Scholarly Works

This article illustrates the differences between the two types of tax expenditures by examining the child tax credit (a distributional expenditure), the charitable deduction (an allocative expenditure), and taxfree saving accounts and the mortgage deduction (both of which are-usually defended on allocative grounds but probably have mainly distributional impacts). These differences should be well understood by policymakers as they consider tax expenditure reform as part of a deficit reduction plan.

Location, Location, Location: Using Cost Of Living To Achieve Tax Equity, James Puckett

Faculty Articles

All other things being equal, the federal income tax ignores whether the taxpayer lives in a relatively affordable or expensive location. This approach can lead to unfairness; moreover, special deductions for the taxpayer's actual living expenses, such as home mortgage interest and state and local taxes, do not solve the problem. Tax law scholars have generally been quick to dismiss the equity issues based on assumptions about taxpayer mobility. The existing literature would tax comparable workers equally, regardless of salary and living costs. This approach would unfairly equate differently situated workers. This article questions the assumption of taxpayer mobility, considers …

Retirees Beware: Don't Worry About The British, 'Taxmageddon' Is Coming, Douglas A. Kahn, Lawrence W. Waggoner

Articles

"Taxmageddon" is coming. Unless Congress extends the current rates or reaches an agreement on tax reform, dividends will then be taxed as ordinary income at a marginal rate as high as 39.6 % and net capital gains will then be taxed at 20%. For high-income taxpayers, a 3.8% Medicare surtax will be added to the taxation of net capital gains, dividend income, interest, and other investment income, bringing the highest marginal rate to 43.4%.

The Effective Tax Rate Of The Largest Us And Eu Multinationals, Reuven S. Avi-Yonah, Yaron Lahav

Articles

The United States has the second highest statutory corporate tax rate in the Organization for Economic Co-Operation and Development (OECD) (after Japan).1 This has not always been the case. After the Tax Reform Act of 1986 lowered the U.S. rate from 46% to 34%,2 the United States had one of the lowest statutory corporate tax rates in the OECD.3 In the past twenty-five years, however, the U.S. rate has remained essentially unchanged (it was raised to 35% in 1993),4 while most other OECD countries reduced their statutory rate so that the OECD average statutory corporate tax rate is 25.1%.

Symposium On International Taxation And Competitiveness: Introduction And Overview, Reuven S. Avi-Yonah, Nicola Sartori

Articles

In February, 2012, the Treasury and White House unveiled President Obama's Framework for Business Tax Reform. A major proposal was to abolish the deferral on income earned by foreign subsidiaries of U.S. corporations ("CFCs").

Change We Can't Believe In ... Or Afford: Why The Timing Is Wrong To Reduce The Estate Tax On The Wealthiest Americans, Phyllis C. Taite

Faculty Articles

At the end of the year 2008 the United States was in the midst of an economic storm. The country started going through its worst financial state since the Great Depression. Historically, transfer taxes were instated specifically to raise revenue during the country’s financial time of need. The temporary repeal during the 2010 tax year occurred during a time when the country was experiencing an economic storm, a time when the country could least afford to forego the additional revenue. Consequently, the timing of the temporary repeal was in direct contradiction to the original purpose of the estate tax. While …