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Paul L. Caron
Dean
Pepperdine Caruso
School of Law

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  • Goldin et al: Optimal Taxation of Indistinguishable Activities

    Jacob Goldin (Chicago), Sebastian Koehne (Kiel), and Nicholas Lawson (Dalhousie) have a new NBER working paper, “Optimal Taxation of Indistinguishable Activities.” Here is the abstract:

    Optimal tax policy frequently prescribes different tax treatments for activities that are difficult in practice for tax administrators to distinguish, such as expenditures undertaken for business versus personal purposes. We study the optimal design of income tax deductions for such expenditures under the assumption that a common deduction rate must be applied to both forms of the expenditure. The Pareto optimal common deduction turns on the relative compensated spending response for each margin, weighted by the income tax wedge. We also characterize the welfare gain from distinguishing between the two expenditure forms as a harmonic mean of the compensated responses. We illustrate both results with an application to air travel expenses.

  • San Diego Law Seeks Professor of Practice and Graduate Tax Director

    The University of San Diego School of Law is hiring in tax! Here is the announcement:

    Know a tax lawyer who’d love to shape the next generation of tax practitioners? The University of San Diego School of Law is hiring a Professor of Practice and Director of Graduate Tax Programs to lead our consistently top-ten-ranked graduate tax program. Since 1978, USD has awarded more than a thousand Tax LL.M. degrees to attorneys who now practice around the world. The director will oversee the development of the tax curriculum, manage both our in-person and online Tax LL.M. programs, supervise our asynchronous course offerings, and recruit and mentor adjunct tax faculty. The director will also teach at least one tax course each semester and work closely with students: advising J.D. students interested in tax careers, helping LL.M. students identify job opportunities, and organizing networking events such as panels, guest speakers, and local tax conferences. Engaging with our LL.M. alumni to strengthen that network is an important part of the role as well. The full posting is available here, and questions may be directed to Vice Dean Robert Muth (RMuth@sandiego.edu). Please share this with anyone you think would be a strong candidate.

  • Mark Zuckerberg Plots Deal to Pay Wealth Tax, Keep Meta Control

    Anders Melin (Bloomberg Law): Mark Zuckerberg Plots Deal to Pay Wealth Tax, Keep Meta Control

    Mark Zuckerberg’s months of wrangling with his own board came to a head with a dinner-table ultimatum.

    …

    His announcement came on Sept. 9, during the board’s regularly scheduled dinner. He was taking steps to leave California after the wealth-tax proposal made it onto the November ballot. Zuckerberg, who’s currently valued at $247 billion by the Bloomberg Billionaires Index, would face a multibillion-dollar bill from the potential levy, which would apply to people whose net worth exceeded $1 billion on Jan. 1, 2026.

    Zuckerberg had been warning the board for weeks that this was a possibility. But now he had a timeline: He would list his home for sale in just four days — a move, he reminded them, that would quickly become public information.

    Within days, the two sides reached an agreement: Meta would offer a new class of non-voting shares to existing investors, and Zuckerberg would have a special agreement that would give him the ability to sell some of that stock without diluting his majority voting power.

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  • Goldman’s $2.3 Billion Deal Puts Tax-Smart ETFs Under Scrutiny

    Lu Wang & Justina Lee (Bloomberg Law): Goldman’s $2.3 Billion Deal Puts Tax-Smart ETFs Under Scrutiny

    When Goldman Sachs Group Inc. buys boutique ETF provider Neos Investments, it’ll acquire not only some of the hottest derivative-income funds around, but also products that are testing how decades-old laws are applied to Wall Street’s new generation of tax-optimizing strategies.

    Neos has made its mark with copycat versions of popular funds from JPMorgan Chase & Co. that combine a bet on a stock index like the S&P 500 with a steady stream of income generated from selling options on that holding.

    The big difference: In a JPMorgan version, much of the payout is taxed at an investor’s ordinary income rate — 37% for top earners. But in the Neos funds, clever financial engineering means most of the income distributed doesn’t have to be taxed immediately, and when it does it’s usually at a lower rate.

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  • Schwab Prepares Its Own Version of Tax Strategy Used by the Rich

    Paige Smith & Loukia Gyftopoulou (Bloomberg Law): Schwab Prepares Its Own Version of Tax Strategy Used by the Rich

    Charles Schwab Corp. is preparing to build out its own tax-aware long-short products as the firm’s customers have piled into the strategy beloved by millionaires looking to cut their tax bills.

    …

    “It’s a way we can deliver sustainable long-short strategies to our clients in a way that is operationally and financially manageable over the longer term,” Wurster said. His comments come after the firm, which provides custody for such strategies, recently tightened its limits for customers wishing to access them.

    Tax-loss harvesting strategies have grown so rapidly that regulators are getting worried. The Internal Revenue Service issued an array of warnings to Wall Street last month saying it plans to publish guidance and may take other steps to bar certain trades that money managers are using to help clients harvest losses and lower tax bills, including on ordinary income.

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  • Caspi Presents “Who Should the IRS Audit?” Today at Northwestern

    Aviv Caspi (Wachtell Fellow, Chicago) presents Who Should the IRS Audit? at Northwestern today as part of its Advanced Topics in Taxation Colloquium hosted by Ari Glogower.

  • Don’t Pursue Happiness. It Will Make You Terribly Unhappy.

    Following up on my previous post, The Meaning of Your Life: Finding Purpose in an Age of Emptiness: The Free Press: Don’t Pursue Happiness. It Will Make You Terribly Unhappy., by Arthur Brooks (Vanderbilt) (Author, The Meaning of Your Life: Finding Purpose in an Age of Emptiness (2026)):

    As someone who has dedicated my life to studying happiness, I am often asked two related questions: What is happiness? And how do we pursue it? During this semiquincentennial anniversary of the Declaration of Independence, those questions have taken on new urgency. Two hundred and fifty years ago, after all, Thomas Jefferson famously declared that we have the God-given right to “the pursuit of happiness.”

    What did he mean? And what does this mean for us in 2026?

    This column is named for the Declaration’s founding promise, so you’d hope that I would know something about exactly how to pursue happiness. The problem is that when this tricky phrase is followed as we often understand happiness today—a physical sensation to be obtained—it leads in the wrong direction. The more you pursue feelings of happiness, the less of it you will get. …

    [L]ive an honorable and upright life, do your duty, and happiness will pursue you. … For Jefferson, happiness was a way of living; feelings be damned. Today—for most people, at least—it is your feelings. …

    People really are happier when they help others. … Researchers have even found physical evidence that other-serving behavior literally feels good. Specifically, altruistic activity engages the brain’s reward systems. …

    Even more effective than giving money is acting generously. As Rabbi Yitzhak taught in the Babylonian Talmud some 1,500 years ago, “Anyone who gives a peruta [a small coin] to a poor person receives six blessings, and whoever consoles him with words of comfort and encouragement receives 11 blessings.” And the fact that this is a religious claim is no coincidence: Serving others as the secret to happiness has been taught by every serious religion throughout history. This is no doubt one reason that religious people who take their faith seriously are, on average, happier than others. They are following a moral aspiration that may seem harder than the animal impulse to selfishness, but that effort is rewarded with well-being.

    Read more
  • NY Times: Christianity Today, a Voice of Centrist Evangelicalism, Is In Turmoil

    New York Times: Christianity Today, a Voice of Centrist Evangelicalism, Is in Turmoil, by Ruth Graham:

    Last year, leaders of the evangelical publication Christianity Today summoned the entire staff to a hotel ballroom in the Chicago suburbs for a meeting about their future.

    The publication’s chief operating officer, Nicole Massie Martin, opened her presentation with a Bible verse from the Old Testament about rejoicing even in dark times, “though the olive crop fails and the fields produce no food.” Then Thomas Addington, the interim president, delivered a blunt message: Christianity Today’s reputation as a staid voice of intellectual centrist evangelicalism — embodied by its proximity to Wheaton College in Illinois — had to change.

    Christianity Today needed to be less like Wheaton and more like TikTok, Mr. Addington told his staff, according to several people who attended the meeting. Warning that layoffs were coming, he ended his presentation with a prayer. A senior editor left the room in tears.

    Fourteen months later, more than half of the 79 employees at that time have either been laid off or resigned, including an editor in chief and four of the company’s longest-tenured journalists.

    In interviews, a number of employees who have departed since the meeting in 2025 said that the changes at Christianity Today seemed to be about more than stabilizing its finances. Its new leaders, they believe, are abandoning the publication’s longtime commitment to independent journalism, a record that includes investigating accounts of misconduct by high-profile evangelicals.

    Bonnie Kristian, Christianity Today’s deputy editor until last week, described its new leaders as being driven “by fear, by the kind of anxiety about reputational and financial loss that makes bold, interesting, principled journalism very difficult.” …

    The Trump years upended the landscape of Christian journalism, and revealed gaps between publishers and the pews.

    Bonnie Kristian, Why I left Christianity Today:

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  • America’s Deep Religious Divide Over Empathy

    Following up on my previous posts:

    Axios, America’s Deep Religious Divide Over Empathy:

    White evangelical Protestants are the only major religious group in which a majority says empathy can become dangerous when it leads people away from a society guided by God’s truth, according to a new survey. …

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  • Tributes to James P. White

    Tributes to James P. White, 59 Ind. L. Rev. 341-54 (2025)

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