TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Wednesday, July 2, 2014

Thomas Cooley Law School Won’t Enroll New 1Ls at Ann Arbor Campus, Plans Faculty Layoffs

Thomas Cooley Logo (2013)ABA Journal, Cooley Law School Won’t Enroll New 1Ls at Ann Arbor Campus, Plans Faculty Layoffs:

According to an internal announcement obtained by Above the Law, Cooley “will hold off enrolling incoming first-term students at the Ann Arbor campus for fall 2014.” The Ann Arbor location is one of four Cooley campuses in Michigan; a fifth campus is in Tampa, Florida.

Thomas M. Cooley Law School Statement (July 1, 2014):

As with most law schools across the country, Cooley Law School’s enrollment and revenue have continued to decline while health care and legacy costs continue to rise. Despite ongoing cost control efforts, the school can no longer avoid the financial imbalance between the revenue and expenses it faces. As a result, the Cooley board of directors and administration are instituting a financial management plan to reduce expenses significantly and right size the organization.

The plan will help the school remain at the forefront of innovative approaches to legal education and continue to deliver the broad, high-quality access to legal instruction students have come to expect from Cooley. It demonstrates the school’s commitment to maintaining its high level of academic excellence and support for current and future students.

The plan includes:

      1. Faculty and staff reductions
      2. A system wide review of each program for capacity and quality
      3. A review of all campuses and facilities to reduce and rebalance costs
      4. A review of all purchases, travel and other expenses

Continue reading

July 2, 2014 in Legal Education | Permalink | Comments (0)

GOP Nominee for Illinois Governor Comes Under Fire for Converting Millions in Ordinary Income Into Capital Gains Through Private Equity Management Fee Waivers

Following up on my previous post, WSJ: Private Equity Firms Save Millions in Taxes by Treating Dividends as 'Monitoring Fees,' Says Polsky:  Chicago Tribune, Rauner Used Strategy Now Under IRS Scrutiny to Slash Income Taxes:

Rauner AdIRS data show Bruce Rauner to be one of the 11,000 richest tax filers in the nation, but most of the millions he made in recent years was taxed at 15 percent — less than half the top federal rate for the wealthy, a review of tax documents released by the GOP governor hopeful shows.

One reason behind that sharp discount is that Rauner took advantage of a strategy that yielded big tax savings on his share of investment fees paid to his private equity firm, GTCR. That strategy is allowed under tax rules but has come under IRS scrutiny.

An analysis of the limited records Rauner has released, conducted by the Tribune in consultation with tax experts, gives the fullest picture yet of the steps he took to trim his tax bill. In ways both big and small, the Republican businessman's financial profile is one driven by tax-reducing strategies often out of reach for those of more modest means:

Rauner's campaign is built around his resounding success at the helm of GTCR, through which he earned millions of dollars a year. But a major portion of that money was reported to the IRS as capital gains taxed at a preferential 15 percent, including money from so-called management fee waivers used by many private equity firms to reduce tax bills for key partners. ...

Continue reading

July 2, 2014 in Tax | Permalink | Comments (6)

WSJ: Improve Your Productivity and Your Life by Getting Rid of Internet Service at Home

Wall Street Journal, Say No to the Distraction-Industrial Complex:

No InternetOf all the potentially embarrassing things I confess to friends and acquaintances, perhaps the one most guaranteed to get a reaction is this: I don't have broadband Internet at home. And here's something I've never said aloud: I don't think you should, either, because it is ruining your productivity, if not your life. ...

Barring emergency, work is confined to work hours. This forces me to be more efficient at the office even as it allows me to be more emotionally present when I'm not there. It also has led me to notice that the times I am most productive while working are when I have no Internet connection at all—on planes, buses and trains.

Continue reading

July 2, 2014 in Legal Education, Tax | Permalink | Comments (0)

Smith: Charitable Deductions for Live-Burn Donations

Eric Smith (Weber State), A Deduction Properly Extinguished? The Live-Burn Donation: A Proposed Sequence of Analysis and Policy Evaluation, 33 Va. Tax. Rev. 459 (2014):

This article updates the literature analyzing the charitable deduction associated with live-burn donations. This deduction has been the subject of multiple recent Tax and appellate Court rulings, all of which have disallowed the deduction. The article examines and reconciles the resulting live-burn donation line of cases. It agrees with prior scholarship finding that the courts’ treatment of the deduction has rendered it ineffective as a tax planning tool, but proposes a theoretical sequence of analysis to gauge the state of the law and determine whether any avenue remains which leads to deduction. Scholarly response to the disallowance of the live-burn donation has been generally negative. In contrast to these positions in the literature, this article finds that denial of a deduction for live-burn donations is consistent with and reconcilable on grounds of traditional tax policy notions of equity and fairness. Despite the live-burn donation’s initial acceptance on the basis of public benefit, the doctrine is fundamentally vulnerable on multiple fronts: it pushes the bounds of vertical equity, it disproportionately favors the wealthy, it undermines traditional concepts of charitable intent, and it provides an excessive private benefit in exchange for a public benefit which is too difficult to measure or quantify.

Prior TaxProf Blog coverage:

July 2, 2014 in Scholarship, Tax | Permalink | Comments (1)

Borden: 11 Notable Partnership Tax Articles of 2013

Tax Analysys Logo (2013)Bradley T. Borden (Brooklyn), Notable Partnership Articles From 2013, 143 Tax Notes 1513 (June 30, 2014):

July 2, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

NY Times: The Self-Promotion Backlash

New York Times:  The Self-Promotion Backlash, by Anna North:

InvisiblesFrom “building your personal brand” to “stepping up your social media presence,” we’re constantly inundated with advice about how to promote ourselves. But some are saying that the pressure to self-promote could, ultimately, be hurting us.

In his recent book Invisibles: The Power of Anonymous Work in an Age of Relentless Self-Promotion, David Zweig profiles a group of people whose jobs are behind the scenes in some way (a guitar technician and a United Nations interpreter, for instance), and who derive satisfaction not from public recognition, but from the internal sense of a job well done. These “Invisibles,” as he calls them, are often extremely fulfilled in their careers, and they may have something to teach those of us who feel we have to constantly promote ourselves to succeed. He writes:

“We’ve been taught that the squeaky wheel gets the grease, that to not just get ahead, but to matter, to exist even, we must make ourselves seen and heard. But what if this is a vast myth?” ...

The Invisibles offer “an alternate path to success” — they got where they were not by courting attention, but by working quietly and extremely carefully toward something bigger than themselves. “The work they do is always in service of a larger endeavor,” he explained. And they show that at least for some people, “when you focus on excellence and good work, that actually does get recognized in the end.”

July 2, 2014 in Book Club, Legal Education, Tax | Permalink | Comments (2)

Tax Prof Puts on the Miles

PriusTen years ago, I blogged the spiffy new, exotic Prius with the "TaxProf" license plate driven by Jay Soled (Rutgers), which spawned my first TaxProf Blog meme, with several posts on other tax-centric license plates (here, here, herehere, and here).  Jay writes in that the Prius just crossed the 250,000-mile marker:

My 2004 Prius now has 250,000 miles.  Consider the following:  over the last ten years, assuming the average car achieved 25 mpg and my Prius achieved 50 mpg, then I was able to save 5,000 gallons of gas and significantly reduce my carbon footprint.  At the risk of sounding smug, this is undoubtedly a good thing for the world.

Continue reading

July 2, 2014 in Legal Education, Tax | Permalink | Comments (5)

The IRS Scandal, Day 419

IRS Logo 2Wall Street Journal:  Judge Sets Hearing on Group's Push to Investigate Lost IRS Emails:

A federal judge scheduled a hearing for next week on a grass-roots conservative group's request to investigate missing emails at the Internal Revenue Service, as part of the group's lawsuit against the agency.

U.S. District Judge Reggie Walton ordered the hearing on Tuesday, after conservative group True the Vote filed a motion seeking to speed up discovery and "preserve and prevent further destruction" of documents and electronic data. Among other things, the group wants a forensic expert to figure out how the emails were lost and examine whether any of the missing data can be recovered.

The hearing is set for July 11 in U.S. District Court in Washington, D.C.

Continue reading

July 2, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Tuesday, July 1, 2014

Gamage: A Way Forward for Tax Law and Economics?

David Gamage (UC-Berkeley), A Way Forward for Tax Law and Economics? A Response to Osofsky's Frictions, Screening, and Tax Law Design, 61 Buff. L. Rev. 189 (2014):

This Essay responds to Leigh Osofsky's Who’s Naughty and Who’s Nice? Frictions, Screening, and Tax Law Design. Osofsky’s analysis suggests that tax rules might be designed so as to take account both of heterogeneity in taxpayers’ tax planning proclivities and of taxpayer characteristics relevant for distribution. By designing tax rules so as to create frictions that differentially impose higher costs on those taxpayers who are more successfully circumventing existing taxes we can perhaps reform our tax system so as to better achieve equitable distribution at lower efficiency costs. This Essay argues that Osofsky's analysis is generally correct and that it potentially suggests a path toward a more useful law and economics analysis of detailed tax rules.

July 1, 2014 in Scholarship, Tax | Permalink | Comments (1)

Bernstein: Why the GOP Really Wants to Defund IRS

Washington Post op-ed:  Why the GOP Really Wants to Defund IRS, by Jared Bernstein:

In one of the great D.C. key-dangles (“look over here, not over there!”), congressional conservatives have everyone looking the other way while they try to defund the Internal Revenue Service. No question, recent IRS screw-ups are feeding right into their opponents’ plans. But let’s not lose sight of what’s really going on here: This is just a different way to try to shrink government, accommodate tax evasion and even undermine the implementation of health reform. ...

To collect taxes, we need an amply funded IRS, and therein lies the real scandal. The details are in this new Center on Budget and Policy Priorities paper by Chuck Marr and Joel Friedman, who document “…significant cuts that have occurred in IRS funding, which remains well below its 2010 level…. The cuts have led the IRS to reduce its workforce, severely scale back employee training, and delay much-needed upgrades to information technology systems. These steps, in turn, have weakened the IRS’s ability to enforce the nation’s tax laws and serve taxpayers efficiently.” ...

Marr and Friedman identify these additional facts of the real case:

  • The figures below show a 14 percent fall in the agency’s inflation-adjusted budget (figure 1) along with an 11 percent decline in its staffing levels (figure 2), 2010-2014. IRS staff assigned specifically to enforcement is down 15 percent.

Bernstein_IRS_combo

Continue reading

July 1, 2014 in IRS News, Tax, Think Tank Reports | Permalink | Comments (7)

Brooks: Fiscal Federalism as Risk-Sharing -- The Insurance Role of Redistributive Taxation

John R. Brooks II (Georgetown), Fiscal Federalism as Risk-Sharing: The Insurance Role of Redistributive Taxation, 68 Tax L. Rev. ___ (2014):

In addition to funding government and redistributing income, a redistributive tax-and-transfer system, and a progressive income tax in particular, provides insurance against the risk of uncertain future income. By providing for high taxes for high incomes, and low taxes, exemptions, and transfers for low incomes, a progressive income tax lowers the volatility of potential after-tax income relative to a lump-sum tax. This insurance function is distinct from the redistributive function of the system, since it provides a direct risk-mitigation benefit to the taxpayer himself, rather than simply redistributing income from one taxpayer to another.

This article analyzes the question of at what level of government to assign the income tax role in a federal system, given both its redistributive and insurance functions. The standard view in the literature is that redistribution is best done centrally, and thus that an income tax is best used by the federal government, rather than by state governments. Yet recent work suggests that states can effectively have some role in redistribution. Income insurance, however, can be more effectively done by the federal government, because of its larger risk pool and better ability to handle revenue volatility.

Continue reading

July 1, 2014 | Permalink | Comments (0)

Judge Dismisses Defamation Lawsuit Against Thomas Cooley Law School

Thomas Cooley Logo (2013)National Law Journal, Judge Tosses Defamation Suit Against Cooley Law:

A federal judge in New York has dismissed a defamation lawsuit brought against Thomas M. Cooley Law School by a plaintiffs attorney who helped spearhead a series of fraud class actions against law schools in 2011.

Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York ruled on June 24 that her court lacked jurisdiction over the Michigan law school, despite plaintiff firm Kurzon LLP’s claims that Cooley advertises, raises money and recruits students in the Empire State.

Continue reading

July 1, 2014 in Legal Education | Permalink | Comments (0)

Zelenak: The Almost-Restatement of Income Tax of 1954

Lawrence Zelenak (Duke), The Almost-Restatement of Income Tax of 1954: When Tax Giants Roamed the Earth, 79 Brook. L. Rev. 709 (2014):

This essay describes the ALI’s Income Tax Project of 1948–1954—its origins, goals, drafting process, final product, and influence on Congress. The essay concludes with some thoughts on what role the ALI can and should play today in the tax legislative process. Whether the fault is in the stars or in ourselves (probably both, but with the stars deserving most of the blame), the drafting of a new ALI model income tax statute for the twenty-first century would be an almost insurmountable challenge in technical terms, and probably pointless in political terms. Nevertheless, there remains room for targeted ALI tax interventions, with a Restatement-type approach to the interpretation of the recently-codified economic substance doctrine16 seeming especially promising.

July 1, 2014 in Scholarship, Tax | Permalink | Comments (0)

Yin: The Most Critical Issue Facing Tax Administration Today -- And What to Do About It

George K. Yin (Virginia), The Most Critical Issue Facing Tax Administration Today -- And What to Do About It:

This very brief paper contains the text of the keynote address delivered on June 19, 2014 to a research conference in Washington, DC on Advancing Tax Administration, co-sponsored by the IRS and the Tax Policy Center.

July 1, 2014 in IRS News, Scholarship, Tax | Permalink | Comments (1)

Subscribing to TaxProf Blog

SubscribeWe offer three ways to have TaxProf Blog content automatically delivered to your computer, tablet, or smart phone:

RSS Feeds:  You can subscribe to one of three different feeds to receive TaxProf Blog posts via your RSS reader:

Email:  You can subscribe to receive TaxProf Blog posts via email through one of three approaches:

  • FeedBlitz:  Enter your email address here to receive TaxProf Blog posts via email, delivered to you either daily, every 12 hours, every 8 hours, every 4 hours, or hourly (at your option).
  • TaxProf Blog Tax Email Service:  Email me to be added to my twice daily (during the week) and once daily (on the weekend) emails to the TaxProf Discussion Group with titles and links to recent TaxProf Blog posts on tax topics.
  • TaxProf Blog Legal Education Email Service:  Email me to be added to my email distribution list with titles and links to recent TaxProf Blog posts on legal education topics.

July 1, 2014 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

Support TaxProf Blog by Shopping on Amazon

Amazon-associatesTaxProf Blog participates in the amazon.com affiliate program. You can help support TaxProf Blog at no cost to you by making purchases through Amazon links on the blog and through the "Shop Amazon" tab on the header at the top of the blog:

Header

and the search box in the right column of the blog:

Amazon Search

July 1, 2014 in Legal Education, Tax | Permalink | Comments (0)

NY Times: Americans Think We Have the World’s Best Colleges. We Don’t.

New York Times:  Americans Think We Have the World’s Best Colleges. We Don’t.:

Americans have a split vision of education. Conventional wisdom has long held that our K-12 schools are mediocre or worse, while our colleges and universities are world class. While policy wonks hotly debate K-12 reform ideas like vouchers and the Common Core state standards, higher education is largely left to its own devices. Many families are worried about how to get into and pay for increasingly expensive colleges. But the stellar quality of those institutions is assumed.

Yet a recent multinational study of adult literacy and numeracy skills suggests that this view is wrong. America’s schools and colleges are actually far more alike than people believe — and not in a good way. The nation’s deep education problems, the data suggest, don’t magically disappear once students disappear behind ivy-covered walls. ...

America’s perceived international dominance of higher education, by contrast, rests largely on global rankings of top universities. According to a recent ranking by the London-based Times Higher Education, 18 of the world’s top 25 universities are American. Similarly, the Academic Ranking of World Universities, published annually by Shanghai Jiao Tong University, gives us 19 of 25.

But there is a problem with this way of thinking. When President Obama has said, “We have the best universities,” he has not meant: “Our universities are, on average, the best” — even though that’s what many people hear. He means, “Of the best universities, most are ours.” The distinction is important. ...

Math

Update:  New York Times, More on American Colleges’ Standing in the World

July 1, 2014 in Legal Education | Permalink | Comments (5)

The IRS Scandal, Day 418

Monday, June 30, 2014

Slate: Now Is a Great Time to Apply to Law School. Really.

Following up on last week's posts:

Slate:  Now Is a Great Time to Apply to Law School; We Aren’t Joking—Promise, by Jordan Weissmann:

After several wretched post-recession years, the job market for new law school graduates may be on the verge of a recovery. So I recently published a post titled Apply to Law School Now! We’re Serious.

A few writers, including the delightfully acidic folks of Above the Law, think I’m disastrously off base—that I have overestimated the strength of tomorrow’s legal labor market and misleadingly ignored the staggering cost of a law school education. So today, I want to explore in a little more depth the reasons why—despite the horrors of the past few years and the sky-high tuition rates that schools charge—now really is a good time to pick up an LSAT guide. ...

As the economy healed and horror stories about jobless and indebted young law grads proliferated, however, something crucial happened: Applications tumbled to their lowest level in at least 30 years. In the fall of 2013, just 39,700 students entered their first year of law school. Given the typical dropout rate, that means we should expect no more than 36,000 to graduate, down about 23 percent from last year’s overstuffed total.

At the same time, it seems the legal job market has begun to stabilize. Last year, 32,775 graduates found full-time jobs lasting at least a year, including positions like judicial clerkships, up slightly from 2012. For such an enormous class of students, that total was woefully insufficient. But here’s the key bit: If the market produces the same number of jobs in 2016, when around 36,000 students are set to graduate, job hunting is going to become a relative cinch. Theoretically, 91 percent of the class could land long-term, full-time work—on par, if not better, than some of the legal industry’s best years.

That’s my basic reason for optimism. Right now, law school looks like a stock that crashed too far after a panic, and is suddenly a bit undervalued. It’s a good time to buy. But of course, not everyone agrees. So let’s go through some of the objections.

Continue reading

June 30, 2014 in Legal Education | Permalink | Comments (7)

Krugman: Charlatans, Cranks, Tax Policy, and Kansas

Following up on Saturday's post, If You Cut Taxes, You Get Less Tax Revenue:  New York Times op-ed:  Charlatans, Cranks and Kansas, by Paul Krugman (Princeton):

KansasTwo years ago Kansas embarked on a remarkable fiscal experiment: It sharply slashed income taxes without any clear idea of what would replace the lost revenue. Sam Brownback, the governor, proposed the legislation — in percentage terms, the largest tax cut in one year any state has ever enacted — in close consultation with the economist Arthur Laffer. And Mr. Brownback predicted that the cuts would jump-start an economic boom — “Look out, Texas,” he proclaimed.

But Kansas isn’t booming — in fact, its economy is lagging both neighboring states and America as a whole. Meanwhile, the state’s budget has plunged deep into deficit, provoking a Moody’s downgrade of its debt.

There’s an important lesson here — but it’s not what you think. Yes, the Kansas debacle shows that tax cuts don’t have magical powers, but we already knew that. The real lesson from Kansas is the enduring power of bad ideas, as long as those ideas serve the interests of the right people.

Continue reading

June 30, 2014 in Tax | Permalink | Comments (0)

Vox: What the Right Doesn't Get About Piketty

Following up on last week's post, Mankiw: How Inherited Wealth Helps the Economy:  Vox, What the Right Doesn't Get About Piketty, by Matthew Yglesias:

Greg Mankiw's column over the weekend, "How inherited wealth helps the economy" is the latest entry into a burgeoning genre of Thomas Piketty's rebuttals that appear to be written by people who aren't familiar with what proposals Piketty is advancing.

But Piketty isn't against the idea of wealth accumulation or even against the idea young of people inheriting accumulated wealth from their ancestors. ... "My point is not to increase taxation of wealth. It's actually to reduce taxation of wealth for most people, but to increase it for those who already have a lot of wealth."

June 30, 2014 in Tax | Permalink | Comments (2)

Spending by the IRS, 1970-2014

Outlays

Data here. (Hat Tip: Len Burman.)

June 30, 2014 in IRS News, Tax | Permalink | Comments (5)

Stiglitz: Inequality Is Not Inevitable

Divide 2New York Times:  Inequality Is Not Inevitable, by Joseph E. Stiglitz (Columbia):

An insidious trend has developed over this past third of a century. A country that experienced shared growth after World War II began to tear apart, so much so that when the Great Recession hit in late 2007, one could no longer ignore the fissures that had come to define the American economic landscape. How did this “shining city on a hill” become the advanced country with the greatest level of inequality?

One stream of the extraordinary discussion set in motion by Thomas Piketty’s timely, important book, Capital in the Twenty-First Century, has settled on the idea that violent extremes of wealth and income are inherent to capitalism. In this scheme, we should view the decades after World War II — a period of rapidly falling inequality — as an aberration.

This is actually a superficial reading of Mr. Piketty’s work, which provides an institutional context for understanding the deepening of inequality over time. Unfortunately, that part of his analysis received somewhat less attention than the more fatalistic-seeming aspects.

Over the past year and a half, The Great Divide, a series in The New York Times for which I have served as moderator, has also presented a wide range of examples that undermine the notion that there are any truly fundamental laws of capitalism. The dynamics of the imperial capitalism of the 19th century needn’t apply in the democracies of the 21st. We don’t need to have this much inequality in America.

Our current brand of capitalism is an ersatz capitalism. For proof of this go back to our response to the Great Recession, where we socialized losses, even as we privatized gains. Perfect competition should drive profits to zero, at least theoretically, but we have monopolies and oligopolies making persistently high profits. C.E.O.s enjoy incomes that are on average 295 times that of the typical worker, a much higher ratio than in the past, without any evidence of a proportionate increase in productivity.

If it is not the inexorable laws of economics that have led to America’s great divide, what is it? The straightforward answer: our policies and our politics. People get tired of hearing about Scandinavian success stories, but the fact of the matter is that Sweden, Finland and Norway have all succeeded in having about as much or faster growth in per capita incomes than the United States and with far greater equality.

So why has America chosen these inequality-enhancing policies? Part of the answer is that as World War II faded into memory, so too did the solidarity it had engendered. As America triumphed in the Cold War, there didn’t seem to be a viable competitor to our economic model. Without this international competition, we no longer had to show that our system could deliver for most of our citizens. ...

The American political system is overrun by money. Economic inequality translates into political inequality, and political inequality yields increasing economic inequality. In fact, as he recognizes, Mr. Piketty’s argument rests on the ability of wealth-holders to keep their after-tax rate of return high relative to economic growth. How do they do this? By designing the rules of the game to ensure this outcome; that is, through politics. ...

Continue reading

June 30, 2014 in Tax | Permalink | Comments (0)

SSRN Tax Professor Rankings

SSRN LogoSSRN has updated its monthly rankings of 750 American and international law school faculties and 3,000 law professors by (among other things) the number of paper downloads from the SSRN database.  Here is the new list (through June 1, 2014) of the Top 25 U.S. Tax Professors in two of the SSRN categories: all-time downloads and recent downloads (within the past 12 months):

 

 

All-Time Downloads

 

Recent Downloads

1

Reuven Avi-Yonah (Mich.)

38,995

Reuven Avi-Yonah (Mich.)

6932

2

Paul Caron (Pepperdine)

26,070

Paul Caron (Pepperdine)

2823

3

Louis Kaplow (Harvard)

22,653

D. Dharmapala (Illinois)

2533

4

D. Dharmapala (Illinois)

19,787

Richard Ainsworth (BU) 

2508

5

Vic Fleischer (San Diego)

19,782

Ed Kleinbard (USC)

2183

6

James Hines (Michigan)

19,542

Katie Pratt (Loyola-L.A.)

2030

7

Ted Seto (Loyola-L.A.)

18,915

Bridget Crawford (Pace]

1901

8

Richard Kaplan (Illinois)

18,678

Louis Kaplow (Harvard)

1846

9

Katie Pratt (Loyola-L.A.)

15,778

Richard Kaplan (Illinois)

1832

10

Dennis Ventry (UC-Davis)

15,312

Jen Kowal (Loyola-L.A.)

1766

11

Carter Bishop (Suffolk)

14,797

Brad Borden (Brooklyn)

1750

12

David Weisbach (Chicago)

14,084

Omri Marian (Florida)

1738

13

Jen Kowal (Loyola-L.A.)

14,065

Robert Sitkoff (Harvard)

1694

14

Chris Sanchirico (Penn)

14,046

James Hines (Michigan)

1583

15

David Walker (BU)

13,833

Dick Harvey (Villanova)

1554

16

Bridget Crawford (Pace)

13,592

Ted Seto (Loyola-L.A.)

1431

17

Francine Lipman (UNLV)

13,555

Jeff Kwall (Loyola-Chicago)

1425

18

Brad Borden (Brooklyn)

13,522

Dan Shaviro (NYU)

1401

19

Robert Sitkoff (Harvard)

13,399

Susan Morse (Texas)

1342

20

Richard Ainsworth (BU)

13,362

Vic Fleischer (San Diego)

1268

21

Ed Kleinbard (USC)

12,757

Francine Lipman (UNLV)

1266

22

Herwig Schlunk (Vanderbilt)

12,424

Carter Bishop (Suffolk)

1260

23

Dan Shaviro (NYU)

11,917

David Gamage (UCBerkeley)

1204

24

Ed McCaffery (USC)

11,667

David Weisbach (Chicago)

1165

25

Wendy Gerzog (Baltimore)

11,610

Dan Simmons (UC-Davis)

1162

Note that this ranking includes full-time tax professors with at least one tax paper on SSRN, and all papers (including non-tax papers) by these tax professors are included in the SSRN data.

Continue reading

June 30, 2014 in Scholarship, Tax, Tax Prof Rankings | Permalink | Comments (0)

Rosenzweig: The Article III Fiscal Power

Adam H. Rosenzweig (Washington U.), The Article III Fiscal Power, 29 Const. Comm. ___ (2014):

What should happen when Congress and the President find themselves in a fiscal policy showdown resulting in a Constitutional violation? This question has risen to the fore in light of the recent political showdowns over the so-called “debt ceiling.” But the question is one that reaches far beyond the debt ceiling debate. Rather, it implicates the broader question of the proper role of the coordinate branches to make the government work within the Constitutional framework.

Continue reading

June 30, 2014 in Scholarship, Tax | Permalink | Comments (0)

Roig: The Case For Retaining Law Faculty Tenure

Jorge R. Roig (Charleston), The First Thing We Do, 47 J. Marshall L. Rev. ___ (2014):

There is currently a concerted effort to dumb down America. In the midst of this, the American Bar Association’s Council of the Section on Legal Education and Admissions to the Bar recently agreed to propose that tenure for law professors be eliminated as a requirement for accreditation of law schools. This article analyzes the arguments for and against tenure in legal academia, and concludes that the main proposed justifications for eliminating tenure are highly questionable, at best. A lawyer is more than a legal technocrat. Lawyers are policy makers and public defenders. They are prosecutors and activists. And the development of a critical and independent mind is no more important in any area of human action than in the law. There is a concerted effort to turn law schools into automaton production lines. Practice-ready, skills-oriented legal education (quite meritorious in itself) has become code for the manufacture of attorneys capable only of following their corporate clients’ instructions to the tee. The goal of this concerted effort is not a truly practice-ready and skilled attorney. The endgame is a mindless legal machine. That is not what a legal education is about. The survival of critical thought is at stake. This is not just about law professors. This is but one salvo in a much larger war against independent minds.

June 30, 2014 in Legal Education, Scholarship | Permalink | Comments (0)

The IRS Scandal, Day 417

IRS Logo 2Tax Analysts Blog:  Lost Lerner E-mails Latest Example of IRS Death Wish, by Jeremy Scott:

Democrats rushed to Koskinen’s defense. That is, perhaps, understandable, even though much of what the IRS has done during this scandal is indefensible. Democrats probably want to defend their president’s pick to head the IRS, and maybe they want to try to change the narrative heading into a potentially disastrous midterm election. But the reality is that the IRS isn’t doing them any favors. There’s only so much incompetence and disingenuous behavior that can be run through a political spin machine. The Democrats’ reflexive defense of Lerner (whose conduct can’t be excused) and their apparent willingness to accept any explanation from Koskinen (who didn’t even try to adequately explain why he hid information on the lost e-mails from February until late June) is baffling. Democrats weakly attempted to paint the GOP as on a witch hunt for a conspiracy, as though the IRS’s mismanagement and appearance of bias weren’t enough to justify congressional inquiry.

Is there a conspiracy or coverup? Christopher Bergin eloquently explained why it’s hard to know and why that doesn’t matter because tax administration has been damaged either way. And that’s the key point. Lerner, former acting Commissioner Steven Miller, and many other officials have engaged in conduct that might have irreparably harmed the Service’s reputation on Capitol Hill and that once again undermined the public’s trust in the nation’s tax collector. And Democrats’ desperate attempts to rush to the president’s defense to limit the damage to their party’s electoral chances will not fix that problem. Instead, the solution will take serious soul-searching at the IRS and a commitment to being genuinely open and transparent with lawmakers and taxpayers.  

Continue reading

June 30, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

TaxProf Blog Weekend Roundup

Sunday, June 29, 2014

NY Times Debate: Is Contemporary Capitalism Compatible with Christian Values?

NY Times Room for DebateNew York Times Room for Debate:  God and Mammon:

Jesus drove money changers out of the Temple, calling them “a den of thieves.” Of the profit-centric world view, Pope Francis warned, “We can no longer trust in the unseen forces and the invisible hand of the market,” to provide economic justice. Others call Christianity and capitalism inextricable.

Is contemporary capitalism compatible with Christian values?

June 29, 2014 in Legal Education, Tax | Permalink | Comments (4)

Top 5 Tax Paper Downloads

SSRN LogoThis week's list of the Top 5 Recent Tax Paper Downloads on SSRN is the same as last week's list:

  1. [271 Downloads]  Carried Interest for the Common Man, by Richard Winchester (Thomas Jefferson)
  2. [235 Downloads]  The Real Problem with Carried Interests, by Heather Field (UC-Hastings)
  3. [199 Downloads]  A State Tax Approach to Regulating Greenhouse Gases Under the Clean Air Act, by Samuel Eisenberg (Stanford), Michael Wara (Stanford), Adele Morris (Brookings Institution), Marta Darby (Stanford) & Joel Minor (Stanford)
  4. [193 Downloads]  Sales Suppression as a Service (SSaaS) & the Apple Store Solution, by Richard Ainsworth (Boston University)
  5. [140 Downloads]  The Relationship between China's Tax Treaties and Indirect Transfer Antiavoidance Rules, by Qiguang Hardy Zhou (Baker & McKenzie, Shanghai City, China)

June 29, 2014 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Bill and Melinda Gates' Stanford Commencement Speech: The Power of Optimism and Empathy

(Click on YouTube button on bottom right to view video directly on YouTube to avoid interruption caused by blog's refresh rate.)

Transcript here. (Hat Tip: Phil Bohl.)

June 29, 2014 in Legal Education | Permalink | Comments (2)

The IRS Scandal, Day 416

IRS Logo 2Tax Analysts Blog:  The IRS Has Been Set Up, by Christopher Bergin:

The IRS’s job is to collect taxes, and historically it’s been pretty darn good at that. But over the years, Congress has tasked the Service with many things that really have nothing to do with collecting revenue. ... So let’s have the IRS administer the healthcare system. Anybody want to hazard a guess about how that’ll go? ...

And that brings us back to section 501(c)(4), through which the IRS has been charged with regulating a part of the political fundraising process. This involves making precise calculations of the amount of political activity engaged in by social welfare organizations seeking tax-exempt status. How is the IRS supposed to determine that? And now added to this paradigm, apparently, is the political pressure being put on the IRS. So if a Democrat is in the White House, all conservative organizations are bad. And when a Republican is in the White House, I’m betting the heat will be on the IRS to determine that all liberal organizations are bad. Is that how this works?

I don’t know if the IRS has been politicized. Until recently that possibility would have been unthinkable. But the potential of the 501(c)(4) rules to be a setup for the politicization of the IRS is enormous. You simply can’t have the tax collector refereeing the people who provide it with its budget. It’s understandable – although, I think, shortsighted – that the Republicans want to starve the beast for its lack of transparency in the investigation of how it handled social welfare organizations. But the beast (and I don’t believe the IRS is a beast) is in real trouble now.

Section 501(c)(4) should be repealed immediately, and the IRS should be tasked with doing its job: collecting taxes. What are the odds that politicians will do that? Nil, because they’re the only ones benefiting from this mess.

But we are where we are, and I am truly worried. If this agency has been politically corrupted, it will not be able to function. And that leaves us with a question. Who's going to collect the revenue? 

Continue reading

June 29, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Saturday, June 28, 2014

WSJ: What Taxpayers With Offshore Accounts Need to Know Before Confessing to the IRS

Wall Street Journal Tax Report:  The Hazards of Offshore-Account Disclosure: Here's What Taxpayers Need to Consider Before They Confess, by Laura Saunders:

FATCATaxpayers should think carefully before entering a new Internal Revenue Service program for offshore-account holders whose conduct wasn't "willful," experts say.

"The term 'willful' has traps for the unwary, and people are falling into them," says Barbara Kaplan, a criminal tax lawyer at Greenberg Traurig in New York.

Continue reading

June 28, 2014 in IRS News, Tax | Permalink | Comments (1)

NY Times: If You Cut Taxes, You Get Less Tax Revenue

New York Times:  Yes, If You Cut Taxes, You Get Less Tax Revenue, by Josh Barro:

Kansas has a problem. In April and May, the state planned to collect $651 million from personal income tax. But instead, it received only $369 million.

In 2012, Kansas lawmakers passed a large and rather unusual income tax cut. It was expected to reduce state tax revenue by more than 10 percent, and Gov. Sam Brownback said it would create “tens of thousands of jobs.”

In part, the tax cut worked in the typical way, by cutting tax rates and increasing the standard deduction. But Kansas also eliminated tax on various kinds of income, including income described commonly — and sometimes misleadingly — as “small-business income.” Basically, if your income results in the generation of a Form 1099-MISC instead of a W-2, it’s probably not taxable anymore in Kansas. ...

While no state has gone as far as Kansas, four others — Missouri, Ohio, Oregon and South Carolina — have passed laws in the last decade that give some small-business owners lower tax rates than wage earners. By creating this preference for some types of income over others, Kansas has run into at least five problems:

  1. It’s sometimes possible to turn taxable salary income into untaxed “business” income.
  2. A lot of the beneficiaries of the tax break won’t be small businesses.
  3. It’s not clear that there’s anything special about small businesses for the purpose of job creation.
  4. Some of the revenue loss doesn’t even benefit taxpayers.
  5. The state budget is suffering.

Continue reading

June 28, 2014 in Tax | Permalink | Comments (1)

Professors Read Mean Student Evaluations

Inside Higher Ed, Mean Tweets, Academic Style:

In the spirit of Jimmy Kimmel’s “Celebrities Read Mean Tweets,” a Canadian university’s student newspaper posted a video this week that features professors reading aloud unflattering reviews from the website Rate My Professors.

 

June 28, 2014 in Legal Education | Permalink | Comments (0)

The IRS Scandal, Day 415

IRS Logo 2Tax Update Blog:  Why Did Lois Lerner Work at the IRS?:

This question came to mind in discussing the Lerner emails with a reader, who noted how a Politico piece about the Grassley email chain revealed this week pointed out this high-level IRS leader’s evident lack of tax skills:

Former ex-IRS tax exempt division chief Marcus Owens said the email chain shows Lerner knew very little about tax law, as there would have been nothing wrong with Grassley and his wife attending such an event, so long as the income was reported. It is nothing that rises to the level of referral for examination,” Owens said.

It is a mystery.  Her Wikipedia biography shows that she was a cum laude graduate of Northeastern University and the Western New England College of Law.  She worked as a high-level attorney at the Federal Election Commission, but moved to IRS as “Director Rulings and Agreements” in the exempt organizations branch of the IRS.  She rose to Director of Exempt Organizations in 2006.

Her resume, then, is that of a bureaucrat, rather than a tax practitioner or specialist.  She apparently never practiced tax law before moving into her important policy position — important in the tax world, anyway.

This sort of thing may be common in the federal bureaucracy.  It’s likely that she got a raise for the move, or something.  But it seems that while you could take the girl out of the FEC, you couldn’t take the FEC out of the girl.  She took it upon herself to monitor the electoral process with the tools of the tax law.

Megan McArdle explains why that was a bad idea:

This exchange suggests that Lois Lerner not only didn’t have a good, basic grasp of the tax law she was supposed to be administering, but also viewed her job as an extension of her work at the Federal Election Commission.

That’s not what the IRS is for. The IRS is not given power over nonprofit status in order to root out electoral corruption or the appearance of it. It is given power over nonprofit status in order to make sure that the Treasury gets all the revenue to which it’s entitled

Unfortunately, politicians see the tax law as the Swiss Army Knife of public policy, and it’s unsurprising that an IRS bureaucrat would see it the same way.

Moreover, Lerner’s overbroad instincts also seemed to kick into high gear when Republican politicians were involved. Of course, such reports might well be survivor bias — Republicans are complaining about Lerner, while Democrats who also had run-ins with her may be keeping quiet for fear of fueling the fire. At this point, however, the fire is burning merrily on its own. If Democrats who encountered Lerner’s overzealous use of her powers are out there, they’d do well to come forward and tell their stories to reassure Americans that even if her actions were overbroad, they weren’t broadly partisan.

They would have emerged by now.  The stats, as we noted yesterday, demonstrate one-sided enforcement.

Chart

It’s unlikely that Ms. Lerner came to the IRS with the idea of using her position to harass the opposition.  She just happened to be in a position to do so when applications from groups she didn’t like — perhaps that she even saw as dangerous and wrong — came across her desk.  It’s possible that she did it entirely on her own.  And that’s the scariest thing — a bureaucracy that moves on its own to squash ungoodthinkers is much more dangerous than a top-down conspiracy.  It may be hard to replace an administration, but it’s almost impossible to replace a bureaucracy.

New York Times:  Is The Times Ignoring a Scandal at the I.R.S.?:

Has The Times been interested enough in the politically charged events involving the Internal Revenue Service? Many readers don’t think so. ...

I asked David Joachim, the Washington-based reporter and editor who has written several of the I.R.S. stories, to respond to this reader and others who believe The Times has not pursued the story aggressively enough.

Mr. Joachim responded by email. He noted that reader comments on the stories show how polarized the feelings are:

One side sees a Nixonian abuse of power and cover-up; the other sees an effort to smear the White House for electoral gain in the midterms. That stuff brings out passions. ... We think we’ve paid copious attention to this story, and we will continue to do so. It’s an important story.>/em>

My take: The Times was somewhat late in beginning to cover the latest development about the lost emails. My office had begun to field several days’ worth of reader protests on the lack of attention when the first story finally went online. Despite that slow start and the quiet display of the subsequent stories (an analytical piece might have been a good choice for the front page), The Times has given its readers insightful coverage of a situation heavily clouded by partisan politics.

Continue reading

June 28, 2014 in IRS News, IRS Scandal | Permalink | Comments (5)

Friday, June 27, 2014

CPAs: IRS's 'Voluntary' Regulation of Tax Preparers Lacks Statutory Authorization From Congress, Contravenes D.C. Circuit Decision, and Violates Administrative Procedure Act

RTRPIn February 2014, the D.C. Circuit unanimously held that the IRS lacked the statutory authority to regulate tax return preparers.  Loving v IRS, No. 13-5061 (D.C. Cir. Feb. 11, 2014).  For an extensive analysis of the decision, see this TaxProf Blog op-ed by Steve Johnson (Florida State).

The IRS yesterday announced a "voluntary" program to regulate tax return preparers.  IRS Commissioner John Koskinen stated:

[T]he IRS had started a mandatory program of education and testing for unregulated tax return preparers who did not have professional credentials. But we had to suspend that program because the courts ruled that we didn’t have the legal authority to require education and testing. So we’re launching a voluntary program as a temporary substitute. It’s called the Annual Filing Season Program.

I say “temporary” because we have been urging Congress to enact a proposal in the President’s Fiscal Year 2015 Budget that would give us the authority for mandatory oversight of return preparers. This voluntary program is not the ideal solution. But until legislation is enacted, we still have a responsibility to taxpayers and to our tax system to keep moving forward with our efforts to improve service to taxpayers.

See also the statement by National Taxpayer Advocate Nina Olson.

In a 14 page letter to Commissioner Koskinen, the American Institute of CPAs argues that the program is illegal:

We write today to express our strong concern that the IRS’s proposed program—in which tax return preparers would receive an IRS certificate for display in return for completing a continuing education program that includes a comprehension assessment (the “proposed program”)—would cause significant legal problems that may ultimately frustrate the IRS’s goals, confuse the public, and lead to litigation.  ...

First, no statute authorizes the proposed program. The IRS’s general authority to administer the tax code under 26 U.S.C. § 7803 does not provide an adequate basis to proceed. Because federal agencies may act only pursuant to a valid delegation of authority by Congress, the IRS may not implement the proposed program. This fatal flaw cannot be overcome by the IRS. That no statutory provision expressly prohibits such a program does not legitimize an otherwise illegitimate act. 

Second, and relatedly, the proposed program will inevitably be viewed as an end-run around Loving v. IRS, which held that the IRS lacks authority to regulate tax return preparers under 31 U.S.C. § 330. To be sure, the regulations invalidated in Loving were mandatory, and the proposed program is purportedly voluntary. But in reality tax return preparers would face an overwhelming, compelled incentive to participate in the IRS’s credentialing program, meaning that the proposed program will be de facto mandatory. In the wake of Loving, that is impermissible.

Third, the IRS has evidently concluded, in developing the proposed program, that it need not comply with the notice and comment requirements of the Administrative Procedure Act (“APA”). This is incorrect. ...

Finally, the current proposal is arbitrary and capricious because it fails to address the problems presented by unethical tax return preparers who defraud their clients, runs counter to evidence presented to the IRS, and will create market confusion. ...

We believe that the proposed program is unlawful and improper. We continue to believe that additional regulation of tax return preparers might yield significant benefits and that the IRS can achieve these objectives while remaining consistent with Loving and other statutory limitations on the IRS’s authority.

June 27, 2014 in IRS News, Tax | Permalink | Comments (11)

Weekly Tax Roundup

University of Oxford 8th Annual Academic Tax Symposium

OxfordThe Oxford University Centre for Business Taxation's 8th Annual Academic Tax Symposium concludes today with these speakers and papers:

David Gamage (UC-Berkeley), On Double-distortion Arguments, Distribution Policy, and the Optimal Choice of Tax Instruments
Discussant:  Jacob Nussim (Bar-Ilan) 

Joerg Paetzold (Salzburg), Unwilling, Unable or Uninformed to Cheat? Tax Evasion vVa Self-reporting in Austria (wth Hannes Winner (Salzburg))
Discussant:  Nirupama Rao (NYU) 

Martin Ruf (Tübingen), Tax Avoidance as a Driver of Mergers and Acquisitions (with Thomas Belz (Mannheim), Leslie Robinson (Dartmouth) & Christian Steffens (Mannheim))
Discussant:  Paul Baker (Bath)

Rosanne Altshuler (Rutgers), The Spillover Effects of Outward Foreign Direct Investment on Home Countries: Evidence from the United States (with Jitao Tang (Ernst & Young))
Discussant:  Estelle Dauchy (New Economic School, Moscow)

June 27, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Weekly SSRN Tax Roundup

 Weekly Roundup

June 27, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Weekly Legal Education Roundup

 Weekly Roundup

June 27, 2014 in Legal Education, Weekly Legal Education Roundup | Permalink | Comments (0)

WSJ: Are Law Schools Heading Into a Bull Market?

Following up on yesterday's post, Slate: Things Are Looking Rosy for the Law School Class of 2018: Wall Street Journal Law Blog, Are Law Schools Heading Into a Bull Market?:

BullThe argument advanced by Mr. Weissmann [in Slate] is one that’s slowly gaining currency among legal education observers. University of Washington law professor Ryan Calo expressed similar optimism in an article for Forbes last fall. Law Blog, in an earlier post, peered into the crystal ball as well and, using slightly different assumptions, predicted that the number of graduates would fall to about 34,000 by 2017. [See also National Law Journal. Tax Prof Ted Seto (Loyola-L.A.) first made this point in 2013.]

The Slate piece concludes on a cautious note, tacking on several “to be sures.” “Some lower-ranked schools will continue to deliver miserable job prospects for their students, just as they have for years,” the piece says.

Continue reading

June 27, 2014 in Legal Education | Permalink | Comments (2)

Virginia Tax Review Publishes New Issue

Virginia Tax Review 2The Virginia Tax Review has published Vol. 33, No. 2 (Fall 2013):

June 27, 2014 in Scholarship, Tax | Permalink | Comments (0)

Wealth Levels, Wealth Inequality, and the Great Recession

More on the Nation's First Hybrid J.D.

MitchellFollowing up on my previous post, ABA Approves First Hybrid Online J.D.:  U.S. News & World Report, New Partially Online Law Degree May Open Door to Similar Programs:

Half of the learning in the program takes place online, with students visiting campus only nine times in four years.  ... The new J.D. at William Mitchell College of Law in St. Paul, Minn., is the first of its type to be approved by the ABA – and may open the door to other law schools to pursue similar degrees, especially if the experiment pans out.

No fully online law schools are currently accredited by the ABA. The designation is significant because states typically allow students to sit for state bar exams only if they have degrees from ABA-accredited schools. California is an exception, allowing graduates of its online law schools to sit for the California bar exam. This has meant that graduates from online law schools are generally shut out of legal practice, except in California.

The ABA’s approval of the new half online, half on-site law program at William Mitchell, which begins in January, should smooth the path for its graduates to take bar exams in any state, says Barry Currier, ABA managing director of accreditation and legal education.

Jonathan H. Stein, an Oxford, Mississippi-based cardiologist who has enrolled in Mitchell’s program because he wants to advocate in court for universal health insurance, sees the Mitchell program as one that is bound to have a big impact on the nation’s law schools. “It’s going to put a lot of pressure on everything within the legal education process,” he says. “Once somebody starts, then everybody else is fair game.”

Most law schools could already be offering more online learning under current standards – and haven’t chosen to do so, Currier says. The ABA currently allows accredited law schools to offer up to 12 credit hours via distance learning, though that could soon be expanding to 15 credits, he says. ...

Continue reading

June 27, 2014 in Legal Education | Permalink | Comments (0)

The IRS Scandal, Day 414

Continue reading

June 27, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Thursday, June 26, 2014

University of Oxford 8th Annual Academic Tax Symposium

OxfordThe Oxford University Centre for Business Taxation's 8th Annual Academic Tax Symposium continues today with these speakers and papers:

Li Liu (Oxford), Small Business Incorporation and Investment: The Role of Corporation Tax (with Michael Devereux (Oxford))
Discussant:  Tim Goodspeed (CUNY)

Joana Naritomi (Harvard), Consumers as Tax Auditors
Discussant:  Jon Kerr (CUNY) 

Daniel Reck (University of Michigan), Reporting What You Can't Hide: How Credit Card Information Reporting Affects Small Business Tax Compliance (with Brett Collins (IRS), Jeffrey Hoopes (Ohio State) & Joel Slemrod (Michigan))
Discussant:  Michelle Hanlon (MIT)

Alex Raskolnikov (Columbia), The Uneasy Case for Graduated Tax Penalties
Discussant:  Miranda Stewart (Melbourne)

Matthew Smith (U.S. Treasury Department), At a Loss: Corporate Elasticity of Income at the Zero Kink (with Elena Patel (U.S. Treasury Department) & Nathan Seegert (Utah))
Discussant:  Tuomas Kosonen (VATT, Helsinki)

Eric Zwick (Harvard), Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus
Discussant:  Dominika Langenmayr (Munich)

Mazhar Waseem (Manchester) Taxes, Informality and Income Shifting: Evidence From a Recent Pakistani Tax Reform
Discussant:  Miguel Almunia (Warwick)

June 26, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Paul Daugerdas (Jenkens & Gilchrist) Sentenced to 15 Years in Prison for Tax Shelter Fraud

The Impact of Taxes on Carmelo Anthony's Free Agency Decision

Sports Illustrated:  How Much Carmelo Can Make as an NBA Free Agent, by Michael McCann (New Hampshire):

AnthonyAnthony's financial decision-making is also affected by income tax rates, which vary widely by state and, as New York City residents know, municipality. SI.com and tax expert Robert Raiola have crunched the numbers for Anthony (whose projected contract amounts are provided by Spotrac.com). We break down how much he would likely earn, after taxes and the standard 4 percent agent commission, if he signed max deals with the Knicks, Bulls, Heat and Rockets.

Carmelo

Forbes:   How State Taxes Could Play A Role In Carmelo Anthony's Landing Spot, by Tony Nitti

(Hat Tip:  Bill Turnier.)

June 26, 2014 in Celebrity Tax Lore, Tax | Permalink | Comments (0)

Robot Doctors, Online Lawyers and Automated Architects: The Future of the Professions?

The Guardian: Robot Doctors, Online Lawyers and Automated Architects: The Future of the Professions?

Advances in technology have long been recognised as a threat to manual labour. Now highly skilled, knowledge-based jobs that were once regarded as safe could be at risk. How will they adapt to the digital age?

Oxford academics Carl Benedikt Frey and Michael A Osborne have predicted computerisation could make nearly half of jobs redundant within 10 to 20 years. Office work and service roles, they wrote, were particularly at risk. But almost nothing is impervious to automation. It has swept through shop floors and factories, transformed businesses big and small, and is beginning to revolutionise the professions.

Knowledge-based jobs were supposed to be safe career choices, the years of study it takes to become a lawyer, say, or an architect or accountant, in theory guaranteeing a lifetime of lucrative employment. That is no longer the case. Now even doctors face the looming threat of possible obsolescence. Expert radiologists are routinely outperformed by pattern-recognition software, diagnosticians by simple computer questionnaires. In 2012, Silicon Valley investor Vinod Khosla predicted that algorithms and machines would replace 80% of doctors within a generation.

In their much-debated book The Second Machine Age, Erik Brynjolfsson and Andrew McAfee argued that we now face an intense period of creative destruction. "Technological progress," they warned, "is going to leave behind some people, perhaps even a lot of people, as it races ahead … there's never been a worse time to be a worker with only 'ordinary' skills and abilities to offer, because computers, robots and other digital technologies are acquiring these skills and abilities at an extraordinary rate."

So where does that leave the professions, whose hard-won expertise is beginning to fall within the power of computers and artificial intelligence to emulate? The efficiency of computerisation seems likely to spell the end of the job security past generations sought in such careers. For many, what were once extraordinary skillsets will soon be rendered ordinary by the advance of the machines. What will it mean to be a professional then?

"We'll see what I call decomposition, the breaking down of professional work into its component parts," says leading legal futurist professor Richard Susskind. Susskind's forthcoming book Beyond the Professions, co-authored with his son Daniel Susskind, examines the transformations already underway across the sectors that once offered jobs for life. He predicts a process not unlike the division of labour that wiped out skilled artisans and craftsmen in the past: the dissolution of expertise into a dozen or more streamlined processes.

"Some of these parts will still require expert trusted advisers acting in traditional ways," he says. "But many other parts will be standardised or systematised or made available with online service." In a previous book Tomorrow's Lawyers, he predicts the creation of eight new legal roles at the intersection of software and law. Many of the job titles sound at home in IT companies: legal knowledge engineer, legal technologist, project manager, risk manager, process analyst.

Continue reading

June 26, 2014 in Legal Education | Permalink | Comments (2)