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As the United States tax system continues to grapple with how to tax workers in the gig economy, it confronts a number of questions about the nature and composition of the sector as well as the tax issues confronted by its participants. Many of these questions have proven difficult to answer due to a lack of adequate information. But the answers are important and will shape how tax and other areas of law (such as employment law, labor law, and antitrust) respond to the gig economy. Thus, the question of how to obtain the data and information necessary to formulate sound policies for gig work is vital. This chapter discusses the limitations of quantitative empirical research on the gig economy and argues that incorporating more qualitative approaches will help generate a more comprehensive understanding of the tax policy issues involved. Adoption of a diverse set of research approaches is crucial because the administrative tax return and labor survey data are incomplete and are shaped by prior decisions of gig economy firms and participants. Many questions remain that such quantitative data, by its very nature, cannot answer. This chapter first identifies the key tax issues at stake in the gig economy, including tax administration, worker classification, and tax impacts on workforce decisions. It then discusses the key ways in which quantitative approaches do not fully capture the tax issues at stake. Finally, it details how qualitative research methods such as interviews and case studies can flesh out gaps in the quantitative data, can help interpret quantitative data, and can help answer questions that extend beyond the scope of quantitative data, yielding a richer account of gig economy tax issues than that provided by quantitative tax administrative and labor survey data alone.
This chapter takes up the first of the four development “problems” highlighted in Part III. Whether in the name of civilization, modernity, or modernization, interventions to transform the composite materials, structural designs, and locations of African homes represented the development agenda to reform African domesticity and labor. Discourses on improvement masked the political and economic agendas at work and ignored the indigenous logic of African residential construction and organization. From the nineteenth century development efforts urged Africans to build square or rectangular houses in place of round huts. The scientific work of early twentieth-century urban planners set the stage for what “modern” urban spaces would look like in African cities. In the postcolonial era urbanization has far outpaced the ability of states and private enterprise to provide affordable, modern housing for citizens. Urban Africans have begun to fight back against the assumptions made about informal settlements by development specialists and city planners from the global north. These activists are challenging their governments to see urban residential areas as social spaces that belong to all citizens, not just wealthy ones. In their challenge, informal settlement dwellers are forcing the international development community to Africanize the development episteme.
The previous conclusion that a uniform lump-sum estate tax could implicitly provide annuity income was reached by ignoring the inheritance that agents receive. However, when the agents leave a bequest, they should also receive an inheritance from their parents. Thus, we make the inheritance received—bequests left cycle complete and fully endogenous. Interestingly, the differential timing and sizes of inheritance then generate unequal wealth effects even with actuarially fair annuity markets. To restore the first best, the government has to adopt an estate tax regime that is no longer uniform. Thus, once bequest is fully endogenized, a uniform estate tax no longer bears the annuity role. Further, the differential timing in receiving inheritance creates an unequal wealth distribution, which is also nonstationary. The paper manifests the importance of accounting for and tracing the inheritance received by agents for any crucial policy recommendation.
Some issues in the application of benefit–cost analysis (BCA) remain contentious. Although a strong conceptual case can be made for taking account of the marginal excess tax burden (METB) in conducting BCAs, it is usually excluded. Although a strong conceptual case can be made that BCA should not include distributional values, some analysts continue to advocate doing so. We discuss the cases for inclusion of the METB and the exclusion of distributional weights from what we refer to as “core” BCA, which we argue should be preserved as a protocol for assessing allocative efficiency. These issues are topical because a recent article in this journal recommends ignoring the METB on the grounds that desirable distributional effects offset its cost. We challenge the logic of this article and explain why it may encourage inefficient policies.
This chapter evaluates the limited function of common law judiciaries in public finance by reference to UK and Australian case studies. It opens by observing and explaining the asymmetrical involvement of judiciaries in public finance law: why disputes concerning tax legislation are more justiciable than disputes concerning appropriation, debt and monetary finance. The chapter then analyses the only modern attempt by a common law judiciary to expand its involvement in disputes concerning public expenditure, Williams v The Commonwealth of Australia, and its aftermath. That Australian case study neatly illustrates the judiciary's inability to effect a meaningful re-distribution of financial authority away from treasury departments and towards parliaments. The chapter then examines the problems with understanding common law courts as systemically reliable mechanisms to enforce parliamentary authority over taxation by reference to the UK judiciary's tax law and tax agency practice. The chapter concludes that the presence of judicial power does not substantially impact the distribution of financial authority between executive governments and parliaments.
Institutions were also financed through economic transfers that drew resources from the individuals that institutions were intended to serve. Two different types of transfers are discussed: euergetistic, or voluntary, contributions made by wealthy patrons in Greco-Roman societies, and involuntary forms of taxation found in many ancient societies. The chapter also discusses forms of tax collection and the use of rents in order to fund institutions.
We estimate historical stock returns for Swedish listed companies in a newly constructed data set of daily stock prices that spans more than 100 years. Stock returns exhibit all the familiar characteristics. The growth of the public sector depressed the stock market, and the process of globalization revitalized it. Banks played an important role in the early development of the stock market. There was little trading in the past, and we examine the effects on return measurement from missing data. Stock selection and the replacement of missing transaction prices through search back procedures or limit orders make little difference to a value-weighted stock price index, while ignoring the price effects of capital operations makes a big difference.
The defining characteristic of common law systems is the development of law through the resolution of disputes by the judges. This precept is anchored in the doctrine of judicial precedent, effected through a system of courts reflecting a hierarchical network of authority. Judicial precedent depends on an authoritative and accessible report of the courts’ decisions. In the long nineteenth century this connection was weak or non-existent in the law of tax. In the rare instances where appeals were permitted, few were reported in a form acceptable to the emerging doctrine of judicial precedent. This had a profound effect on the nascent substantive tax law. It inhibited the robust development of its principles and the interpretation of tax legislation, thereby undermining the quality of tax law and process. It also promoted the isolation of tax law from the norms and values of the legal system well into the twentieth century.
International institutions established to promote carbon pricing and carbon markets (including carbon taxation, emissions trading and offsets) constitute a rapidly growing alphabet soup of acronyms straddling the boundaries between public and private organisations. All institutions within the carbon pricing sub-field subscribe to the norm that climate change should be addressed through placing a price on emissions. The various institutions perform different roles. While several of the private institutions set standards and commitments regulating how private actors should trade emission allowances and offset emissions, public and hybrid institutions tend to play information dissemination and networking roles focused on supporting political decisions to implement carbon pricing and to link carbon markets. The carbon pricing sub-field is characterised by coordination or co-existence, with significant attempts to establish a division of labour, and only little outright competition or conflict. Focusing on the interlinkages between the UNFCCC and the World Bank institutions that address carbon pricing, we found that also the relationships between these two particular sides are characterised by close coordination. This coordination is informed by cognitive and normative interaction mechanisms, while differences between both sides are managed in a bottom-up, incremental manner.
Theories of the rise of the modern state hold that central rulers make land property “legible” to extract revenue, leading landholders to oppose state registration. This study revises this logic and argues that when land ownership is disputed, landholders use inscription into state records to secure legal property rights. To minimize resulting tax liabilities, propertied interests may exploit opportunities to manipulate land valuations, which determine the tax burden. The argument is substantiated using historical tax and cadastral records from Colombia. Difference-in-differences analyses of two critical attempts at land reform, led by the Liberal Party, show that land property registration spiked disproportionately in threatened Conservative municipalities, where tax revenues lagged behind nonetheless, due to systematic undervaluation of property. The study concludes that landholders’ selective subversion of state building may disrupt the assumed link between legibility and taxation and spawn territorially uneven patterns of state capacity that mirror domestic conflict lines.
The tax system incentivizes automation, even in cases where it is not otherwise efficient. This is because the vast majority of tax revenue is derived from labor income. When an AI replaces a person, the government loses a substantial amount of tax revenue - potentially hundreds of billions of dollars a year in the aggregate. All of this is the unintended result of a system designed to tax labor rather than capital. Such a system no longer works once labor is capital. Robots are not good taxpayers. The solution is to change the tax system to be more neutral between AI and human workers and to limit automation’s impact on tax revenue. This would be best achieved by reducing taxes on human workers and increasing corporate and capital taxes.
This chapter explains the need for AI legal neutrality and discusses its benefits and limitations. It then provides an overview of its application in tax, tort, intellectual property, and criminal law. Law is vitally important to the development of AI, and AI will have a transformative effect on the law given that many legal rules are based on standards of human behavior that will be automated. As AI increasingly steps into the shoes of people, it will need to be treated more like a person, and more importantly, sometimes people will need to be treated more like AI.
We use a New Keynesian DSGE model with search frictions on the housing market to evaluate how financing a labor tax reduction by higher property taxation affects the real economy and welfare. Search on the housing market enables us to explicitly model stocks and flows, which is necessary to differentiate between recurrent property taxes (levied on stocks) and property transaction taxes (levied to flows). We find that using recurrent property taxation as financing instrument outperforms other instruments although all policy measures increase aggregate economy-wide welfare. Our simulations suggest that using property transaction taxation as financing instrument is the least favorable measure.
To provide baseline evidence of sugar-sweetened beverage (SSB) consumption in a sample of Irish children prior to the introduction of the SSB tax; to identify the energy contribution of SSB to daily energy intake; and to explore the association between SSB consumption and overweight/obesity.
Primary schools in Cork, Ireland in 2012.
1075 boys and girls aged 8–11 years. SSB consumption was assessed from 3-d food diaries. BMI was used to define obesity (International Obesity Taskforce definitions). Plausible energy reporters (n 724, 68 % of total sample) were classified using Schofield equation.
Eighty-two per cent of children with plausible energy intake consumed SSB. Mean energy intake from SSB was 485 kJ (6 % of total kJ). Mean kilojoules from SSB increased with weight status from 443 kJ for normal-weight children to 648 kJ for children with overweight/obesity (5·8 and 7·6 % of total kJ, respectively). Mean SSB intake was significantly higher in children with overweight/obesity than normal-weight children (383 and 315 ml/d). In adjusted analyses, children consuming >200 ml/d had an 80 % increased odds of overweight/obesity compared to those consuming <200 ml/d (OR 1·8, 95 % CI 1·0, 3·5). Family socioeconomic status and lifestyle determinants, including frequency of takeaway consumption and TV viewing, were also significantly associated with SSB consumption.
SSB account for a substantial proportion of daily energy intake and are significantly associated with child overweight/obesity. This study provides baseline data from a sample of children from which the impact of the SSB tax can be benchmarked.
Chapter 5 turns to national and local leaders. Profit-sharing among leaders follows a different logic: the more economically prosperous the locality, the more personal rents they can collect as massive graft. By unpacking the career paths of two infamously fallen officials – Bo Xilai (provincial Party secretary of Chongqing) and Ji Jianye (city mayor of Nanjing) – this chapter reveals why deal-making corruption was compatible with aggressive growth promotion. It also fleshes out the structural distortions and risks brought about by access money.
The overall aim of this article is to analyse the principal purpose test as an emerging rule of customary international tax law. By means of the principal purpose test, the tax administration can deny the tax treaty benefit if one of the principal purposes of the action undertaken by the taxpayer was to obtain a benefit. This principal purpose test has been developed by the OECD with the political support of the G20 as one of the actions to tackle Base Erosion and Profit Shifting by multinationals (BEPS Project). At the time of writing, 137 jurisdictions including non-OECD, non-G-20 countries have committed to the implementation of the principal purpose test in their current and future tax treaties. Based on the analysis of the objective element (state practice) and subjective element (accepted as law), there are indications that this principal purpose test can emerge as a principle of customary international law. In the past, international tax law scholars addressed the customary international law regarding the OECD/UN tax treaty Models, the OECD Harmful Tax Practices, and the arm’s length principle. However, current international tax developments, including the BEPS Project, call for an analysis of the main elements of customary international law in respect of the principal purpose test, a general anti-avoidance rule that by its own nature, is often general, vague, and imprecise. Therefore, the findings of this article can be useful for generating new areas of research by international public law, international law, and international tax law experts.
Value Added Tax (VAT) is a tax on the value added at each stage of the production and distribution process and on the importation of goods. VAT registered importers in Uganda are charged the statutory VAT rate of 18 per cent, however, importers that are not VAT registered are charged both the 18 per cent and an additional 15 per cent, which is designated “Domestic VAT”. The statutory basis of the 15 per cent is unclear. Domestic VAT appears to be a tax created by the Uganda Revenue Authority in a bid to raise revenue from a largely non-compliant base. The legality of the tax was challenged in Margaret Akiiki Rwaheru and 13,945 Others v Uganda Revenue Authority. The court ruled that Domestic VAT was irregular when applied to importers who qualified to register for VAT but had not registered, but was illegal when applied to importers who did not qualify to register for VAT. Despite this ruling, the URA has continued to charge all importers Domestic VAT, regardless of whether they qualify to register for VAT. This article seeks to re-examine the legality of Domestic VAT.
Chapter 6 describes how some local governments have given rights of citizenship, including voting rights, to nonresident landowners; in some cases, municipalities have actually limited the franchise exclusively to landowners. Once again, this is indicative of the distinctive nature of local citizenship. Property ownership ceased being a prerequisite for voting in state and federal elections by the 1850s, as citizenship was coming to be seen primarily in ethno-nationalist terms as a matter of shared identity. Local governments, reflecting their history as commercial entities, have been more open to tying the franchise to landownership, and as a de facto matter, many cities today use zoning regulations to ensure that anyone who cannot afford to purchase a home cannot acquire residence, and therefore the right to vote. This de facto property qualification for local citizenship illustrates that local citizenship is constructed as purely private and liberal, predicated upon consumer choice, mobility, and self-interest rather than identity or civic activity.
Legal maneuvers can help explain the rapid recent growth of privatized forms of governance, such as voucher schemes and tax expenditures. Although privatization seems to exacerbate principal-agent problems and reduce credit-claiming opportunities, attenuating the relationship between the state and the controversial policy outputs can be politically expedient for policymakers fearing legal losses, because it helps defend such policies in court. This chapter introduces readers to the concept of attenuation: the process by which policymakers in local, state, or federal government hide the state’s role in promoting a particular policy output. Anticipating constitutional challenge, elites use strategic policy design and rhetoric to advance their policy goals.
The sluggish growth of vouchers into the first decade of the twenty-first century prompted voucher supporters to reevaluate their strategy. Ballot initiatives proved fruitless, so supporters switched to state legislatures and sought to distance the state from private schools by funding vouchers through tax credits rather than direct appropriation. The full fruits of attenuated governance matured with Republican victories during Barack Obama’s presidency. This chapter shows that the doubly distanced tax credit form enabled individualist and accommodationist forces to divert public funds to private religious institutions without appearing to do so. Due to the lingering importance of communitarian public schooling and secularist approaches to church–state relations among the nation’s many judges, doubly distanced policies were safest. Statistical analysis demonstrates that they were, and are, least likely to be challenged in court or struck down as unconstitutional. Attenuation is a powerful strategy for rival forces in America’s foundational struggles because it enables policymakers to achieve their goals obliquely. The link between state and legally controversial policy outputs is plausibly deniable in crucial venues of policy contestation, provided that elites follow the attenuation strategy consistently.