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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  • Will Catholic Church’s Criticism of Kerry Jeopardize Tax Exemption?

    Monday, May 17, 2004

    Donald Tobin (Ohio State) raises the interesting question of whether the Bishop of Colorado placed his diocese’s tax exemption in jeopardy by telling Catholics in a pastoral letter that that “any Catholics who vote for candidates who stand for abortion, illicit stem cell research or euthanasia suffer the same fateful consequences [as the candidates who support these issues]?” According to the Bishop, such people “place themselves outside full communion with the Church and so jeopardize their salvation.” Professor Tobin writes:

    [The Bishop] later goes on to say that “The Church never directs citizens to vote for any specific candidate,” but the letter certainly appears to be telling people to vote against Kerry.

    This letter appears to me to be very close to the line. In its recent notice, Charities May Not Engage in Political Campaign Activities, the IRS indicated that:

    “These organizations [501(c)(3)s] cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to any candidate. Even activities that encourage people to vote for or against a particular candidate on the basis of nonpartisan criteria violate the political campaign prohibition of section
    501(c)(3).”

    Isn’t [the Bishop’s] letter political activity detrimental to a candidate? It is not just saying good Catholics oppose these issues, but is instead saying that when a Catholic balances the pros and cons of a candidate, he risks salvation if he decides to vote for Kerry over Bush.

    The Bishop has also picked specific issues that divide Bush and Kerry and makes reference to the coming election often. It is my understanding that the Church also opposes the death penalty, but that was not listed. (I have no idea of Kerry’s position on the Death Penalty) Do I risk salvation by voting for either Kerry or Bush? It appears the Bishop picked specific issues that Kerry opposes (or Bush supports) and basically indicated that only people who vote for Kerry “jeopardize their salvation.” (I understand he never mentions Kerry by name but it is impossible to read the letter and not get his meaning).

    I am sure that the IRS will not take on the Catholic Church over this issue. But it seems to me to be another reason 1) not to exempt 501(c)s from campaign finance regulation and 2) not to rely on the IRS as an enforcement mechanism for campaign finance regulation.

  • Report on State Earned Income Tax Credits

    Monday, May 17, 2004

    The Center on Budget and Policy Priorities has released A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty. The effectiveness of the federal EITC in encouraging work among welfare recipients and in inducing more single mothers to work has been well-studied. State EITCs, however, often have been ignored in this scholarly debate. In all, 17 states (Colorado, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oklahoma, Oregon, Rhode Island, Vermont, Virginia, Wisconsin) and the District of Columbia have EITCs ranging from 4% to 43%. For a full summary of the report, see here.

  • Georgetown Guide to Tax Research

    Monday, May 17, 2004

    The Edward Bennett Williams Library at Georgetown University Law Center has an extraordinarily helpful on-line Federal Tax Research Guide, as well as a handy Federal Tax Reference Chart and State & Local Tax Research Guide. After a detailed Introduction, the Federal Tax Research Guide provides listings of tax sources in these major categories:

    • Statutes

    • Administrative

    • Judicial

    • Periodicals

    • Procedure

    • IRS Pubs

    • IRS Forms

    • Internet

    TaxProf Blog will add links to these wonderful sites to our list of resources in the left column. For links to research guides in other areas of law, see here. Thanks to Benefitsblog for the tip.

  • Paine on Tax Treatment of International Philanthropy

    Monday, May 17, 2004

    Robert Paine has published The Tax Treatment of International Philanthropy and Public Policy, 19 Akron Tax J. 1 (2004). Here is part of the introduction:

    Despite the changes in the landscape of international philanthropy and the revelations regarding its abuse, the U.S. tax system continues to impose an archaic and inconsistent web of policies and restrictions on taxpayers: a system of rules and limitations that differ according to the status of the taxpayer as an individual, a public charity, or a private foundation. The traditional policy that has guided the development of the charitable deduction and tax exemption is that charitable activities ease a burden that would otherwise have to be borne by the United States government. This policy creates inconsistent treatment, however, when it is applied to international charitable giving. Because of this inconsistent treatment and the ever-increasing globalization of the world’s communities, Congress should adopt a new policy to guide this field: a policy that grants a charitable deduction and tax exemption (1) if a contribution or grant furthers one of the traditional charitable purposes enumerated in § 501(c)(3) and (2) if the activity does not violate the public policy of the United States.

  • Penn State Tax Conference

    Monday, May 17, 2004

    The 58th Annual Penn State Tax Conference is being held today and tomorrow in State College, Pennsylvania. Tax Prof Kathy Mandelbaum (Temple) will be speaking on Estate & Gift Taxes. For a list of the other speakers and topics, see here.

  • Top 5 Tax Paper Downloads

    Sunday, May 16, 2004

    This week’s list of the Top 5 Tax Paper Downloads on SSRN is unchanged from last week:

    1. Corporations, Society and the State: A Defense of the Corporate Tax, by Reuven Avi-Yonah (Michigan)

    2. The Dividend Divide in Anglo-American Corporate Taxation, by Steven Bank (UCLA)

    3. Evidence of Differing Market Responses to Meeting or Beating Targets Through Tax Expense Management, by Cristi Gleason (Iowa – Dep’t of Accounting) & Lillian Mills (Arizona – College of Business & Public Administration)

    4. Masking Redistribution (or its Absence) by Jonathan Baron (Penn – Wharton) & Edward McCaffery (USC)

    5. The Progressive Consumption Tax Revisited, by Steven Bank (UCLA)

  • Senate Staff Summary of Pension Bill

    Sunday, May 16, 2004

    The Senate Finance Committee staff has prepared a very helpful 10-page summary of the National Employee Savings and Trust Equity Guarantee Act (NESTEG).

  • President Bush Seeks Reappointment of Tax Court Judge Colvin

    Sunday, May 16, 2004

    The White House sent to the Senate its request to reappoint Tax Court Judge John O. Colvin for another 15-year term. Originally appointed to the Tax Court by President Reagan in 1988, Judge Colvin has served as a senior judge since his first 15-year term expired August 31, 2003.

  • Gov. Schwarzenegger Proposes 75% Tax on Punitive Damages

    Saturday, May 15, 2004

    According to today’s L.A. Times, Gov. Schwarzenegger has proposed a 75% tax on punitive damage awards to help close California’s gaping budget deficit. Eight other states (Alaska, Georgia, Illinois, Indiana, Iowa, Missouri, Oregon and Utah) impose similar taxes. See discussion on That’s News To Me (via Legal Theory Blog).

  • TaxProf Spotlight: George Yin

    Saturday, May 15, 2004

    Photo of Professor YinGeorge Yin, Howard W. Smith Professor of Law at Virginia, was appointed in February 2003 to be the new Chief of Staff of the U.S. Congress’s Joint Committee on Taxation, one of the most influential tax positions in the country. The 10-member Joint Committee is composed of the five senior members of the House Ways and Means Committee and the five senior members of the Senate Finance Committee. The Joint Committee’s nonpartisan staff assists in every aspect of Congress’s consideration of new tax legislation and oversight of existing tax laws. Professor Yin heads a 70-person staff, including roughly 50 lawyers and economists. “One reason I took the job is because of the tremendous reputation of the staff,” he said. “It is a real honor and privilege to work with them and lead them.”

    Professor Yin served as tax counsel to the Senate Finance Committee from 1983 until 1986, when he joined the law faculty at Florida. He moved to Virginia in 1994. He has been an advisor to the U.S. Department of the Treasury, the Joint Committee on Taxation, the National Committee on Restructuring the Internal Revenue Service, and the Select Revenue Measures Subcommittee of the U.S. House Committee on Ways and Means. From 1994 to 1999, he was reporter to the American Law Institute’s federal tax project on the taxation of private business enterprises. He has testified before Congress on the tax policy aspects of mergers and acquisitions and on the design of the earned income tax credit program. At Virgina he has taught corporate tax, partnership tax, federal income tax, and international taxation, and his scholarship has encompassed diverse topics such as corporate tax integration, the earned income tax credit, consumption taxes, partnership taxation, and corporate tax shelters.

    Professor Yin will be on leave from the University of Virginia during his time in D.C., although his commitment to the committee is open-ended. He said he took the job primarily because he believes in public service. “It is a challenging and important time to be involved in the tax legislative arena and I hope that I can contribute in some small way to improve the quality of the nation’s tax.” For further discussion, see the press releases from the University ofVirginia and the Joint Committee on Taxation.

    Each Saturday, TaxProf Blog will shine the spotlight on one of the 700+ tax professors in America’s law schools. We hope to help bring the many individual stories of scholarly achievements, teaching innovations, public service, and career moves within the tax professorate to the attention of the broader tax community. Please email me suggestions for future Tax Prof profiles.

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