Guest columnists Igor De Lazari, Antonio Sepulveda, and Judge Sergio Dias describe how Brazil recently addressed an issue currently before the US Supreme Court-an issue of when (and whether) a state may collect taxes on goods that originate out of state. De Lazari, Sepulveda, and Dias suggest that perhaps the issue is better resolved, as it was in Brazil, through the legislative process rather than by court decision, so as to ease what is likely to be an abrupt transition.
George Washington law professor and economist Neil H. Buchanan argues that Republicans could have achieved a middle-class tax cut a fraction of the cost of the Republicans' tax bill. Buchanan points out that while the middle class may see a few thousand dollars in the short-term, Republican donors and wealthy corporations will benefit from significantly reduced taxes year after year, indefinitely, causing yet another surge in economic inequality.
Cornell University law professor Michael C. Dorf considers whether the new tax law, which disproportionally affects “blue” states as compared to “red” states due to changes to the deductions for state and local taxes (SALT), is unconstitutional. Dorf explains some of the possible arguments against the law but ultimately concludes that due to difficulties of proof, courts probably won’t end up ruling that the SALT deductibility cap violates the First Amendment or a core principle of federalism.
Boston University law professor Tamar Frankel describes the history of money and its role in societies and governments, leading up to today’s bitcoin and the issues governments face in attempting to regulate the cryptocurrency. Rather than purport to provide answer to these pressing questions, Frankel seeks instead to open the door to plain English discussions about the duality of money as asset and as money, the legal control of money transfers to prevent violations of the law, and the government’s control of money supply, which affects the economy and financial systems.
George Washington law professor and economist Neil H. Buchanan provides political context for the latest Republican-backed tax reform package. He highlights how the authors of an “open letter” to “Senators and Representatives” that recently made the rounds, and which attempted to solicit signatures of other Republican economists, deliberately misused numbers and employed sleight-of-hand wording to declare that corporate tax cuts would stimulate economic growth, lead to more jobs, and increase American wages. Buchanan counters each of the letter’s assertions in turn, illustrates how its stated economics is ultimately faulty, and fixes a critical eye on the economists who so willingly set aside intellectual integrity to appease the well-financed Republican powerbrokers who support these tax cuts.
Cornell University law professor Sherry F. Colb considers a provision of the proposed statute in the House version of the latest tax reform bill that would have allowed expectant parents to take a tax deduction on college fund investments for their offspring. Colb notes the negative response to this provision among pro-choice advocates as a result of how the provision’s language equates a fetus with a child. While acknowledging the worry among abortion rights proponents that such wording might provide a legal foundation for future attempts to restrict women’s rights to terminate their pregnancies, Colb counters this concern by explaining why it is unlikely that the language in the tax bill would have any effect on the legal status of abortion.
George Washington law professor and economist Neil H. Buchanan discusses politicians' current fixation on the budget deficit and argues that Democrats who take an anti-deficit stance to attack the Republican tax bill are playing right into Republicans’ hands. Buchanan explains why blanket declarations about decreasing the budget deficit as a tax reform fix-all are problematic and cautions Democrats (along with journalists who report on tax reform issues) to be mindful of the arguments they choose when countering Republicans.
University of Washington law professor Anita Ramasastry comments on the recent release of records known as the Paradise Papers, which reveal the identities of thousands of individuals and corporations using offshore jurisdictions as a tax avoidance strategy. Ramasastry argues that while such actions may in many cases be legal, they are also unethical. She points out that if we focus on the harm of tax avoidance to society, rather than how it is legally defined, then we can see that it contributes to growing inequality and increases tax burdens on resident taxpayers who cannot change their citizenship or move their money.
George Washington law professor and economist Neil H. Buchanan argues that economic inequality is the political and economic issue of our time, and now is the perfect opportunity for Democrats to push toward a solution. Buchanan decries the claim that the correct path is to triangulate between the policies of the left and the right and explains why now, more than ever, progressive policies are the best response.
Marci A. Hamilton, a professor and resident senior fellow in the Fox Leadership Program at the University of Pennsylvania, describes the enormous costs associated with child sex abuse that fall on the victims’ families, government welfare programs, and society. Hamilton points out that there is no comprehensive metric that considers all of the costs, but the ones that have been measured are staggering.
George Washington law professor and economist Neil H. Buchanan comments on the response of Louise Linton, wife of Treasury Secretary Steve Mnuchin, to criticism regarding her bragging about wearing expensive clothes in a government jet. Buchanan points out that Linton’s path to fortune is based not on her hard work but largely on circumstances beyond her control, and he argues that simply being a billionaire does not necessarily mean one has positively contributed to society to get there.
George Washington law professor and economist Neil H. Buchanan continues his discussion of tax reform, suggesting that a starting place for meaningful reform would be to tax wealth more effectively, tax unrealized gains, and eliminate the preferential tax rates for investment income. Buchanan points out that even modest changes in these areas would significantly address the problem of growing economic inequality in our country.
In this first of a series of columns on tax reform, George Washington law professor and economist Neil H. Buchanan describes a few items that should not be seriously considered in attempting to improve the status quo. Buchanan argues that the notion of a complete overhaul of the tax code, and the proposal that the tax code should be “simpler,” ignore important considerations and distract from real issues.
Neil H. Buchanan, a George Washington law professor and economist, argues that the tax code status quo (imperfect as it is) is better than the changes Republicans are proposing to make. Buchanan explains the difference between the marginal tax rate and the effective tax rate and how Republicans focus only on marginal tax rates in order to mislead the public.
George Washington law professor and economist Neil H. Buchanan once again explains why supply-side economics does not work to stimulate the economy. Buchanan points out the logical mistake of inferring causation from correlation and points to the consensus among economists across the political spectrum that supply-side economics has no basis in fact or theory.
Chapman University Fowler School of Law professor Ronald D. Rotunda comments on a few aspects of the U.S. federal income tax. Specifically, Rotunda discusses some of the proposals for tax reform and the tax revenue each reform might affect.
Chapman University Fowler School of Law professor Ronald D. Rotunda argues that lowering the marginal tax rates improves the economy. Rotunda looks at several historical examples where lowering the marginal tax rate coincided with an increase in the gross domestic product (GDP).
George Washington law professor and economist Neil H. Buchanan explains that, contrary to what conservatives argue, liberals are concerned with both supply- and demand-side economics. Buchanan describes several liberal-backed policies that have important supply-side effects.
In anticipation of President Trump and congressional Republicans trying to pass severely regressive tax cuts for the rich, George Washington law professor and economist Neil H. Buchanan preemptively critiques conservatives’ claims that supply-side economics works. Buchanan points out that the great weight of evidence demonstrates that it does not, and only blind belief could lead one to think otherwise.
George Washington law professor and economist Neil H. Buchanan explains in plain English what Mick Mulvaney meant when he attempted to justify President Trump’s budget proposal that would cut programs that help America’s most vulnerable, such as Meals on Wheels and subsidized school lunches for poor children. As Buchanan explains, Mulvaney’s explanation is based on a false notion that better-off people gain as much utility from each dollar as worse-off people receive from the same amount.