Dual Income Taxation and Developing Countries

Published Feb 20, 2015

Abstract The dual income tax combines a progressive tax on labor income and a lower flat rate tax on income from capital. Denmark, Finland, Norway, and Sweden adopted dual income taxes to address a set of tax challenges that arose in the late 1980s and early 1990s. Although developing countries face much different economic, political,… Read more

Legal Transitions and the Problem of Reliance

Published Feb 20, 2015

Abstract This Article analyzes the literature on legal transitions. The principal focus is taxation, but the analysis generalizes to other areas. I argue that the theoretical apparatus developed by scholars active in the legal transitions area suffers from significant conceptual shortcomings. These shortcomings include the unwarranted assimilation of legal to factual change, the naturalization of… Read more

Sales Tax Exceptionalism

Published Feb 18, 2015

Abstract There is something different about the state sales tax, or so it seems based on judicial decisions creating unique jurisdictional and apportionment standards for the tax. This article explores the concept of “sales tax exceptionalism,” and assesses whether the special treatment afforded to the sales tax is justified by the theoretical foundations of the… Read more

“Establishment”: A Core Concept in Chinese Inbound Income Taxation

Published Feb 17, 2015

Introduction I. Legal, Regulatory and Commercial Context for the Concept of “Establishment” A. Historical Bias Against Unincorporated Forms B. Recent Advances in Partnership Forms C. Increased Foreign Portfolio Investment II. Statutory Concept of “Establishment,” its Evolution and Importance A. Statutory and Quasi-Statutory Definitions B. Administrative Announcements C. New Uncertainties III. Policy Issues and the Interpretation… Read more

New Tax Issues Arising From the Dodd-Frank Act and Related Changes to Market Practice for Derivatives

Published Jan 29, 2015

Abstract The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) requires that most over-the-counter (“OTC”) derivatives be cleared through a clearinghouse and traded on a regulated exchange. This article discusses a number of U.S. federal income tax issues raised by Dodd-Frank and related changes to market practice for derivatives. The article also provides background… Read more

To Confuse and Protect: Taxes and Consumer Protection

Published Jan 29, 2015

Abstract Imperfect information may cause rationally bounded individuals to make consistent mistakes. This paper focuses on potential misperception of prices. Consumers may underestimate the full price of tax-exclusive prices and hence overconsume goods and services. Countries with a significant consumption tax base (for example, a value-added tax) regulate tax-inclusive price presentation to overcome consumers’ biases… Read more

The Sound and Fury of Carried Interest Reform

Published Jan 29, 2015

Introduction I. Private Equity Funds: Allocations and Distributions A. Understanding the Business Arrangements That Prompted Proposed § 710 B. Economic Risk of Loss and Deemed Taxes C. Timing of Distributions and Disguised Loans D. Earned Capital II. Proposed §§ 710 and 83 A. Ordinary Income Treatment B. Joint-Tax Perspective and § 83 C. Compensatory Options… Read more