Sometimes we do get what we are seeking. In some of my recent work on the sharing economy I have advocated for more discussion and analysis across legal boundaries, so that the rules we develop have outcomes that more closely match our goals and don’t bring unexpected—and undesired—surprises. The two-day conference on “Sharing Economy: Markets & Human Rights” that I have been attending at the College of Law and Business in Ramat Gan, Israel has provided just such an opportunity. The papers presented cover a wide range of legal fields and issues from taxation to discrimination, and will ultimately be published together in the Law & Ethics of Human Rights Journal. Although we are all benefiting from the discussion of our drafts and will continue to revise our work, some interesting themes have emerged already . . .
Tax-gift giving this holiday season just got so much easier!! Look what arrived just in time to celebrate the end of 2017! The FIRST in a series of subject-matter volumes of US Feminist Judgments is the Feminist Judgements: Rewritten Tax Opinions.
I am writing this letter in December on my ten-minute break at work. I apologize for my rushed handwriting and the tardiness of this letter. I don’t have access to a computer, except for short periods (only 15 minutes per session) at the library. And the lines have gotten too long for me to wait while my three wiggly kids struggle to sit still (only to be hushed by the library staff and patrons every few minutes). I have been really busy balancing my new jobs with the kids’ schedules, especially with the holidays and all the stress and craziness that they add. Continue reading “A Mother’s Holiday Letter to Uncle Sam”→
*Attribution, respect and applause to #CriptheVote Disability Visibility Project community organizers and activists.
“[W]ork is a valued activity, both for individuals and society; and fulfills the need of an individual to be productive, promotes independence, enhances self-esteem, and allows for participation in the mainstream of life in America.” Rehabilitation Act of 1973 Continue reading “Crip the Code*”→
Tax reform is, in many ways, a product of its time. So I guess it shouldn’t surprise anybody that the late-2017 tax reform effort would somehow intersect with the post-Weinstein revelations of rampant sexual harassment and assault by powerful men.
Shu-Yi Oei and I have been tracking the recent tax reform developments as well as a couple of proposed tax bills that deal with worker classification, information reporting, and tax withholding. Based on a description prepared by the Joint Committee on Taxation, it looks like the Senate Tax Bill is going to include a new safe harbor provision guaranteeing worker classification as an independent contractor and will make changes to independent contractor withholding and information reporting. We posted our analysis of this proposal and its potentially serious implications on TaxProf Blog: The Senate Bill and the Battles Over Worker Classification.
Our main points:
1. Not just tax: This worker classification safe harbor is not just about tax, it will likely have impacts on employment/labor law outcomes and protections as well.
2. Not just gig workers: Based on the Joint Committee description, the proposal is not limited to gig economy workers —anyone who meets the safe harbor requirements (which are pretty easy to satisfy in many cases) can be classified as an independent contractor. This may have the effect of encouraging employers to push workers into work relationships that come within the safe harbor. Or, in certain cases, it may facilitate the strategic movement of higher-income workers into independent contractor status — see point 4 below.
The most recent big financial data leak, dubbed the Paradise Papers, is now in full swing in the media. On Monday, Shu-Yi Oei blogged the initial release and its immediate takeaways (including the revelation that U.S. Commerce Secretary Wilbur Ross continued to hold investments in a shipping business that had business connections to key Russian figures). But each passing hour brings new information and individuals into the public spotlight – and in the process sheds light on how such information is likely to be used and what the media and the public seem to find most noteworthy.
Another data leak broke on Sunday, November 5, while I was on a plane home from Bergen, Norway. Coincidentally, Diane Ring and I were in Bergen presenting our Leak-Driven Law paper at a tax conference organized by Max Planck Institute for Tax Law and Public Finance, Norwegian Centre for Taxation, and Notre Dame University.
This new “Paradise Papers” leak involves a set of 13.4 million records from 1950 to 2016.
“The new files come from two offshore services firms as well as from 19 corporate registries maintained by governments in jurisdictions that serve as waystations in the global shadow economy. The leaks were obtained by German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists and a network of more than 380 journalists in 67 countries.”
Diane and I argued in Leak-Driven Law that (1) the high-salience and shocking nature of tax and other leaks and (2) the interventions of the press and other actors in processing, framing, and generating publicity about these leaks are important features that can affect how legal responses and reactions occur in the aftermath of a leak. We’ll be keeping track of how events unfold in the aftermath of this latest leak and how it fits or doesn’t fit with the observations in our paper:
I, and others, certainly will have plenty of articles about what is wrong and right about the current tax cuts proposals. But, as I read the plan, I became frustrated with a proposal that was missing – fixing the Highway Trust Fund.
Infrastructure spending is a priority of this administration. In the spring President Trump announced his $1 Trillion ($1,000,000,000,000) infrastructure plan. According to the administration, the plan will rebuild the nation’s roads, tunnels and bridges. By September, the administration was contemplating how to pay for this spending from private sector credits to dumping the burden on the states.
The most recent discussion of how to pay for the $1 Trillion spend happened during discussions with the House Ways and Means members. According to the Washington Post, “At the meeting Tuesday, Higgins said Trump indicated the administration instead would seek to pay for infrastructure upgrades through direct federal spending — either by paying for projects with new tax revenue or by taking on debt.”
I was hoping, I know naivety, that another option would be discussed – pay for the infrastructure spending like always via the Highway Trust Fund which generates revenues via the gasoline and diesel tax. Since there would be a budgetary shortfall, maybe we should actually increase or fix the tax.
Sadly, no. But it helped bring several B horror movies that I’ve never seen (and you probably haven’t, either).
Back in the 1970s, film tax shelters were big enough that the Ways and Means Committee got a report on the subject.[fn1]
But the US wasn’t the only market that allowed for film tax shelters. In 1974, Canada raised its Capital Cost Allowance from 60% to 100%. Investors could deduct 100% of the money they put into Canadian-produced movies. How important was this increased deduction limitation? In 1974, only three movies were produced in Canada. In 1979, the number had increased to 77. Continue reading “Did Taxes Bring Us Ghostbusters?”→
Yesterday I blogged about Day 1 of the international sharing economy conference, titled “Reshaping: Work in the Platform Economy.” Today the Conference resumed in Amsterdam and included a fascinating roundtable with representatives from some of the platform firms alongside some sharing economy workers. Each offered their experience/perspective on the sector, posed questions to each other, and took questions from the audience.
Not surprisingly, just as there are a range of business models and niches in the sector, there are also a variety of reasons why workers participate in and do platform work. What workers seek from the platforms (beyond good pay) may differ from worker to worker. For example, a sharing economy worker may desire contact with other workers, a sense of community, predictability, or worker dignity. Building on the Day 1 discussions, several themes emerged by the close of the Conference:
Today the “Reshaping: Work in the Platform Economy” Conference got underway in Amsterdam. In contrast to many academic conferences, the explicit goal here is to bring together a truly wide array of actors in the sharing economy (policy makers, academics, actual gig workers, platform businesses, research institutes, and media) in a mixed format setting that includes academic presentations, panel presentations by gig workers, small group active round tables, and research-poster sessions. The international dimension, with participants and presenters from a variety of jurisdictions, contributes to the breadth of discussion.
On NPR this morning, I heard that Chris Long, a defensive end for the Philadelphia Eagles, is donating his entire year’s salary to various charitable organizations that provide scholarships and support to underserved youth. (He already donated his salary from the first six games of the season to fund two seven-year scholarships at his alma mater in Charlottesville.)
That is unequivocally a good thing, and a generous thing. But it’s not without tax consequences.
When I think about charitable gifts, the first thing that comes to mind is their deductibility. But it turns out that the deduction for charitable contributions comes with a couple limitations. First, of course, is that only taxpayers who itemize get to deduct charitable contributions. Of course, given that this is a $1 million plus (more on that in a minute) donation, Long will definitely itemize. Continue reading “Chris Long, Philanthropist”→
The Treasury Inspector General for Tax Administration (TIGTA) just issued a new report four years and five months after rebuking the IRS for using “inappropriate” criteria to select applications for tax exempt status for scrutiny. In the first report, TIGTA rebuked the IRS for pulling the applications of conservative leaning organizations for greater scrutiny.
This time it considers the fact that the IRS over a period of 10 years used liberal leaning names such as ACORN, Emerge, and Progressive as criteria for pulling applications for greater scrutiny. This resulted in the IRS applying greater scrutiny to these organizations. Some might say the IRS targeted these organizations. Those organizations appear to have faced long wait times as well, and sometimes some questions of limited merit.