a surfer in front of the malibu pier on a sunny day

Paul L. Caron
Dean
Pepperdine Caruso
School of Law

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  • A Beckerian Theory of Taxation

    Margaret Chen (Chicago), Mikhail Golosov (Chicago), and Ilia Krasikov (ASU) have a new NBER working paper, “A Beckerian Theory of Taxation.” Here is the abstract:

    We study taxation in matching environments in which both equilibrium sorting and the sharing of match surplus are endogenous. Tax reforms lead to complex adjustments in sorting and surplus sharing patterns across the whole economy. We develop a general approach for characterizing these equilibrium adjustments using matching elasticities, which are primitive objects that describe how agents’ matching choices are affected by pecuniary payoffs in partial equilibrium. Applying this approach to a workhorse model of family formation, we first show that the sorting and surplus sharing responses are closely linked to complementarities in the creation of economic surplus, as first emphasized by Becker (1973). We then describe the effects of arbitrary tax reforms on tax revenues, the utilities of different agents, and social welfare; design tests to assess Pareto efficiency of existing tax systems; derive formulas that characterize optimal taxes; and propose numerical techniques to compute them. In a calibrated model, we find that optimal marginal tax rates are substantially lower and less progressive than in the Mirrleesian benchmark.

  • Will JD Hiring Plunge as Enrollment Booms?

    I missed this story back in September: “Big Law First-Year Hiring Set to Plunge as History, AI Collide,” from Bloomberg Law:

    Last year, firms with more than 500 lawyers hired 6,588 new graduates, down 538, or 7.5%, from the 2024 peak, according to data released last month from the National Association for Law Placement, which has tracked law school hiring for decades.

    The group’s historical data shows a clear pattern dating to the 1980s. Once NALP’s largest group of firms has its hiring peak, incoming class sizes bottom out three years later. That’s what happened after each of the last three peak hiring years, which coincided with US recessions: 1990, 2001, and 2008. …

    [F]irms also expect the historical trend to occur once again.

    Two-thirds of large firms predict they will have fewer first-year associates in 2028 compared to 2025, according to a survey of 57 large firms conducted by Citi’s law firm banking group this summer. Nearly 60% expect they will have fewer second-year associates in 2028 than 2025, indicating two straight years of entry-level hiring declines.

    All of this comes amid a resurgence in the size of the overall JD student population. For a handy summary, refer to Derek Muller’s review of 1L and JD enrollment, from December 2025.

    (more…)
  • The 2026 SALT Award of Distinction Winner: Richard Pomp

    Richard Pomp (The University of Connecticut School of Law) has won Tax Analysts’ 2026 Award of Distinction in U.S. State and Local Taxation. Congratulations! Here is the start of their nice writeup:

    Perhaps the hardest part of selecting the winner of the 2026 Tax Analysts Award of Distinction in U.S. State and Local Taxation was deciding which of Richard D. Pomp’s innumerable contributions to the field to honor.

    The Award of Distinction recognizes a person for a specific contribution with a discernible impact on the field of taxation, rather than honoring a lifetime of work. Pomp, the Alva P. Loiselle Professor of Law and Board of Trustees Distinguished Professor at the University of Connecticut, has led a career of unusual scope, such that holding to that criterion posed some challenges.

  • Musk Would Avoid $2 Billion Tax Bill With Trump Account Donation

    Chris Cioffi (Bloomberg Law): Musk Would Avoid $2 Billion Tax Bill With Trump Account Donation

    Elon Musk’s enormous promise to give a SpaceX share to every child in America could vaporize around $2.6 billion in taxes for Musk….And though receiving stocks in Trump Accounts could be a good deal for holders of the tax-privileged accounts, there are numerous logistical hurdles to clear before cashing in, tax experts say.

    (more…)
  • Kleiman Presents Today at San Diego

    Ariel Jurow Kleiman (USC, SSRN), presents at San Diego today as part of its Tax Law Speaker Series.

    Monday, Nov. 2, 2026 | noon – 1:00 p.m. PST
    Warren Hall 2A, University of San Diego
    students welcome / lunch provided / registration not required

  • Mazur Presents “Modernizing the IRS in the Age of AI” Today at Pepperdine

    Orly Mazur (SMU) presents Modernizing the IRS in the Age of AI, 45 Va. Tax Rev. 182 (2026), at Pepperdine today as part of its Fall 2026 Pepperdine Tax Policy Workshop Series, hosted by Deanna Newton. If you would like to attend any of the workshops (and join the post-workshop lunch), please contact Deanna Newton.

    Update: Post-workshop lunch:

  • NY Times: Academic Theology, Church, and Prayer

    New York Times Op-Ed: ‘I Shall Be Very Surprised if There Isn’t a Next Chapter’: A Q&A With Sarah Coakley, by Peter Wehner (Trinity Forum):

    The Rev. Dr. Sarah Coakley is one of the most original and consequential theologians in the world. An Anglican priest and philosopher of religion, she was the first woman elected the Norris-Hulse professor of divinity at Cambridge, a chair she held until 2018, and before that she was the Mallinckrodt professor of divinity at Harvard. She is the author of eight books, including “God, Sexuality and the Self,” the first volume of her projected four-part systematic theology.

    I spoke to Dr. Coakley about why she decided, at a young age, that she wanted to be a theologian; the times she has wanted to disbelieve in God but never quite could; and her attempt to reunite academic theology with the life of the church and the practice of prayer. Contemplative prayer, Dr. Coakley said, is a “crucible of purification.” …

    1. Origins. Sarah Coakley: From very earliest childhood, in a way that I can’t even now explain, God seemed to me to be an obvious and holy reality. And I’m therefore very much a once-born, as William James put it. I’ve never had a conversion experience. There have been times when I’ve wanted not to believe in God. There are lots of good reasons for not believing in God, and sometimes those reasons have seemed overwhelming. But I have great difficulty in not believing in God.

    Peter Wehner:  You told Robert Lawrence Kuhn in an interview that you’ve often wanted not to believe in God for a lot of rational reasons, but you found it very difficult. Could you elaborate on that? Is the reason you find yourself wanting to disbelieve in God intellectual? And why did you find yourself coming back to God?

    Coakley: The times when I’ve wanted to give it all up had to do partly with frustration with the institution of the church. They’re often very bad institutions, frankly. But the more important theological existential side has been an overwhelming sensibility about the way that God either abandons or oppresses us at times. And it’s that very bizarre combination of oppressive presence but at the same time abandonment. It is described probably more profoundly than anywhere else in Christian tradition in John of the Cross’s second dark night, the night of spirit, but also in Martin Luther’s Deus absconditus, the “hidden God.”

    Read more
  • You Cannot See Everything. But You Are Seen.

    Christianity Today: What a Painfully Weird Movie Can Show Us About Lying and Liars, by Russell Moore:

    Nathan Fielder is not for everyone.

    The kind of person who can’t watch the “Scott’s Tots” episode of The Office because of the cringe factor would never make it through Fielder’s characteristic awkwardness. This time it was on display in his new film, You Can See Everything, in which Fielder spends time with even-more-awkward Elizabeth Holmes—convicted of defrauding stockholders with her Theranos blood-testing device—and her cartoonishly narcissistic romantic partner during the last weeks before Holmes’s incarceration. The primary frustration for moviegoers so far, though, is not the weirdness of it all, but the fact that the film does not live up to its title.

    In one sense, you can see everything in this movie—so much so that you wonder why these people ever agreed to let these cameras into their home. You can see Holmes’s manipulation, the boyfriend’s sociopathy, and Fielder’s ethical shadiness and emotional complicity playing out on the screen. You can see Holmes’s parents trying to maintain stability while expressing anguish and perhaps even repressed shame on their faces. What audiences say they can’t see, though, is the answer to the question they want to know: Is this convicted fraudster a serial liar or a dupe who’s deluded?

    Read more
  • Esther and the Midterm Elections

    Christianity Today, What the Bible’s Most Political Book Can Teach Us, by Michael J. Rhodes (Author, Reimagining Biblical Politics (2026):

    Esther asks tough questions, offers no easy answers, and remains more vital than ever as Americans go to the polls.

    Faced with a toxic, increasingly partisan political moment, some Christians opt for an all-or-nothing political certainty that paints every political issue in black and white. At its worst, such certainty can lead Christians to confidently identify their political opponents as the enemies of God and to claim to know exactly how God is at work on the political scene.

    Others, though, are overwhelmed by ongoing uncertainty. Even after we cast our votes in the upcoming midterms, we’ll be confronted with a seemingly endless stream of political questions. Should we join this protest? How about that march? Should we call our representatives or publicly support a specific policy? Should we donate to a political campaign, post about a political issue on social media, or bring that awkward political conversation up with our extended family and friends?

    If overconfidence can lead us in dark, demonizing directions, uncertainty can leave us with a crippling paralysis. What’s an aspiring political disciple to do?

    Enter the Book of Esther.

    Biblical scholars—including me, in my book Reimagining Biblical Politics—have argued Esther might be the most political book in the Bible. …

    Esther’s political career begins when she makes the best of an awful situation, hiding her ethnicity and winning favor on the way to becoming queen. She acts subversively to ensure Haman gets what’s coming to him. By the end, Esther and Mordecai effectively hold public office, writing law from within the empire itself (8:1–2; 7–8).

    If Esther is arguably the Bible’s most political book, it’s also the most ambiguous. It’s not just that God goes unmentioned; it’s as if the narrator has systematically erased every possible reference to Israel’s faith. There is no mention of temple, Torah, or even prayer.

    Readers have been arguing about how to interpret this ambiguity for millennia. Is God’s absence the narrator’s clever way of winking at divine providence at work behind the scenes? Or does God’s absence from the story serve to highlight what the human characters do? Does the story even suggest God has withdrawn from active involvement with his people? …

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  • Tax Prof Masterminds of California Wealth Tax Bet Their Moment Has Arrived

    Bloomberg, Tax-the-Rich Masterminds Bet Their Moment Has Finally Arrived:

    When Senator Elizabeth Warren ran for president in 2020, she suggested making America’s richest households pay a tax on their wealth. David Gamage was one of the people called in to work on it.

    Gamage, a University of Missouri tax law professor who worked in the Treasury Department under President Barack Obama, was asked to help tailor a proposal and then a bill that could survive legal challenges. But Warren’s White House bid fell short, and her tax idea didn’t make it out of committee even though Democrats controlled Congress at the time (she has since reintroduced the legislation).

    In spite of that, the unassuming Gamage became something of a guru. After Warren’s effort failed, he started hearing from politicians and activists across the US who wanted to tax wealth. Most of the queries he put aside. But at the urging of fellow law professor Darien Shanske, Gamage reconsidered a pitch from SEIU-UHW, a labor union looking for a way to tax California’s billionaires.

    Read more

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