Category Archives: Taxation

News Article: “Portland Adopts Surcharge on C.E.O. Pay in Move vs. Income Inequality”

News Article: Gretchen Morgenson, “Portland Adopts Surcharge on C.E.O. Pay in Move vs. Income Inequality,” N.Y. Times, Dec. 7, 2016.

Article: “Families Facing Tax Increases Under Trump’s Latest Tax Plan”

Article: Lily L. Batchelder, “Families Facing Tax Increases Under Trump’s Latest Tax Plan,” NYU School of Law (Sept. 2016).

Donald Trump’s latest tax plan would cost more than $5 trillion over 10 years. Trump claims his plan would cut taxes for every income group, with the largest tax cuts for working- and middle-class families. But despite its enormous price tag, his plan would actually significantly raise taxes for millions of low- and middle-income families with children, with especially large tax increases for working single parents.

This paper explains why Trump’s latest tax plan raises taxes on so many families and provides examples of how large these tax increases would be. I conservatively estimate that Trump’s plan would increase taxes for roughly 7.8 million families with minor children. These families who would pay more taxes represent roughly 20% of households with minor children and more than half of single parents. They include roughly 25 million individuals and 15 million children.

Article: “Framing Middle-Class Insecurity: Tax and the Ideology of Unequal Economic Growth”

Article: Martha T. McCluskey, “Framing Middle-Class Insecurity: Tax and the Ideology of Unequal Economic Growth,” 84 Fordham L. Rev. 2699 (2016).

 

Article: “Perpetuating Inequality by Taxing Wealth”

Article: Goldburn P. Maynard Jr.,”Perpetuating Inequality by Taxing Wealth,” 84 Fordham L. Rev. 2429 (2016).

 

Article: “Inequality and the Mortgage Interest Deduction”

Article: Daniel Jacob Hemel & Kyle Rozema, “Inequality and the Mortgage Interest Deduction,” Tax L. Rev. (forthcoming).

The mortgage interest deduction is often criticized for contributing to after-tax income inequality. Yet the effects of the mortgage interest deduction on income inequality are more nuanced than the conventional wisdom would suggest. We show that the mortgage interest deduction causes high-income households (i.e., those in the top 10% and top 1%) to bear a larger share of the total tax burden than they would if the deduction were repealed. We further show that the effect of the mortgage interest deduction on income inequality is highly sensitive to the alternative scenario against which the deduction is evaluated. These findings demonstrate that claims about the distributional effects of the mortgage interest deduction depend critically on the counterfactual to which the status quo is compared. We extend our analysis to the deduction for state and local taxes and the charitable contribution deduction. We conclude that the appropriate counterfactual for distributional claims is dependent upon political context — and, in particular, on the feasible set of politically acceptable reforms up for consideration.

 

Article: “Earned Income Tax Credit: Path Dependence and the Blessing of Undertheorization”

Article: Michael B. Adamson, “Earned Income Tax Credit: Path Dependence and the Blessing of Undertheorization,” 65 Duke L.J. 1439 (2016).

Some commentators have lamented that the Earned Income Tax Credit (EITC) is undertheorized—that its purpose is unclear—and that its design is therefore suboptimal. This Note explores the credit’s path-dependent past, which has resulted in a present-day EITC that manifests a diverse, uncoordinated assortment of policy purposes. Although the EITC’s ambiguity of purpose may yield policy inefficiencies, this Note argues that it also produces significant political benefits that would-be reformers who value the EITC’s many societal benefits should take into account before they attempt to enact any major overhaul.

News Article: “Hillary Clinton is proposing a policy to tackle deep poverty”

News Article: Dylan Matthews, “Hillary Clinton is proposing a policy to tackle deep poverty,” Vox, Oct. 11, 2016.

 

Article: “Is Tax Increment Financing Racist? The Racially Disparate Impact in Chicago’s TIF Spending”

Article: Jared F. Knight, “Is Tax Increment Financing Racist? The Racially Disparate Impact in Chicago’s TIF Spending,” 101 Iowa L. Rev. 1681 (2016).

Tax-Increment Financing (TIF) is a financing tool used by cities large and small across the country. Chicago, whose history includes several instances of de jure and de facto racial discrimination, is an especially prolific TIF user. This Note examines TIF distribution in each of Chicago’s 50 wards. Both a regression analysis and full population data show that White wards receive substantially greater TIF allocations than Black and Hispanic wards. To solve this disparity, this Note proposes amending the Illinois TIF statute to narrow the circumstances in which TIF is available. This Note further proposes changing Chicago’s TIF allocation process to restrict TIF dollars to wards experiencing extreme poverty and wards with little racial disparity, concluding that the latter is the best and fastest short-term option to correct the imbalance.

 

New Blog Post: “I’ve Got ITINs on My Mind” — post about taxation and immigration.

New Blog Post: Francine Lipman, I’ve Got ITINs on My Mind, The Surley Subgroup, Sept. 24, 2016.

Blog Post: “2015 Poverty Measures Released: Antipoverty Relief Delivered through the IRC = EITC & CTC”

Blog Post: Francine J. Lipman, “2015 Poverty Measures Released: Antipoverty Relief Delivered through the IRC = EITC & CTC,” The Surly Subgroup, Sept. 18, 2016.