Posts Tagged ‘taxes’

New: Cato Supreme Court Review (including me on gerrymandering and the Constitution)

On Monday the Cato Institute published its annual Cato Supreme Court Review for the 2017-18 Supreme Court term. Included is my 7,000-word article on the Supreme Court’s cases last term on partisan gerrymandering, Gill v. Whitford (Wisconsin) and Benisek v. Lamone (Maryland). Several people have told me that I managed to make a dry and complicated subject understandable and even entertaining, which I take as the highest compliment.

The entire CSCR is online, and here are its contents. I assisted in the editing of the pieces by Joseph Bishop-Henchman on the Internet sales tax case South Dakota v. Wayfair, and by Jennifer Mascott on the government-structure case Lucia v. SEC.

FOREWORD AND INTRODUCTION

The Battle for the Court: Politics vs. Principles by Roger Pilon
Introduction By Ilya Shapiro

ANNUAL KENNETH B. SIMON LECTURE

The Administrative Threat to Civil Liberties by Philip Hamburger

IMMIGRATION AND NATIONAL SECURITY

The Travel Bans by Josh Blackman

POLITICAL GERRYMANDERING

The Ghost Ship of Gerrymandering Law by Walter Olson

THE CRIMINAL LAW

Katz Nipped and Katz Cradled: Carpenter and the Evolving Fourth Amendment by Trevor Burrus and James Knight

Class v. United States: Bargained Justice and a System of Efficiencies by Lucian E. Dervan

THE FIRST AMENDMENT AND THE CULTURE WARS

Masterpiece Cakeshop: A Romer for Religious Objectors? by Thomas C. Berg

To Speak or Not to Speak, That Is Your Right: Janus v. AFSCME by David Forte

NIFLA v. Becerra: A Seismic Decision Protecting Occupational Speech by Robert McNamara and Paul Sherman

Regulation of Political Apparel in Polling Places: Why the Supreme Court’s Mansky Opinion Did Not Go Far Enough by Rodney A. Smolla

FEDERALISM AND GOVERNMENT STRUCTURE

Betting on Federalism: Murphy v. NCAA and the Future of Sports Gambling by Mark Brnovich

Internet Sales Taxes from 1789 to the Present Day: South Dakota v. Wayfair by Joseph Bishop-Henchman

“Officers” in the Supreme Court: Lucia v. SEC by Jennifer Mascott

NEXT YEAR

Looking Ahead: October Term 2018 by Erin E. Murphy

September 12 roundup

  • Peer-to-peer car sharing platforms could reduce the costs of car usage, unless elements of rental car industry manage to strangle it through regulation [Jonathan M. Gitlin, ArsTechnica on Illinois Gov. Rauner’s veto of a bill to cripple startups] Are we headed toward a legal requirement that cars be designed to sense that a driver has high blood alcohol and not function then? Does it matter whether the car is self-driving? [Nicole Gelinas]
  • “11th Circuit rages against ‘incomprehensible’ shotgun complaint, concludes lawyer’s intent was delay” [ABA Journal]
  • Quackery and bluster define the lawsuit filed by NY, MD, NJ, and CT attorneys general against Congress’s curtailment of state and local tax (SALT) deduction [Reilly Stephens; more, Howard Gleckman, Tax Policy Center]
  • “Conservative/Libertarian Faculty Candidates Are Hired By Law Schools Ranked 12-13 Spots Lower Than Equally-Credentialed Liberal Applicants” [James Cleith Phillips via Paul Caron/TaxProf]
  • Coming next week: I’m set to host and moderate a Sept. 20 forum at Cato in D.C. on the Indian Child Welfare Act. Featured are three lawyers who have been involved in high-profile ICWA litigation, Timothy Sandefur of the Goldwater Institute, Matthew McGill of Gibson Dunn, and Charles Rothfeld of Mayer Brown and Yale Law School [details and registration; event not livestreamed, but video to be posted later]
  • And now for something completely different: “Charles Evans Hughes and Chevron Deference” [Gerard Magliocca]

Supreme Court roundup

Union group: Amazon should be prosecuted for threatening to pull jobs over per-worker tax

A “union-backed activist group says Amazon should be charged with a crime for its threat to roll back job growth” if the Seattle City Council follows through with a controversial tax idea to assess larger firms a new per-employee tax. “The group, Working Washington, is asking Washington State Attorney General Bob Ferguson to charge Amazon with a Class B felony: ‘intimidating a public servant,’ citing the company’s move to pause some construction and leasing in the city pending the outcome of the vote on the so-called ‘head tax.’…Former state Attorney General Rob McKenna called the group’s prosecution demand absurd, saying the law in question is aimed at protecting individual public employees from personal threat, particularly of physical force.” [Jim Brunner, Seattle Times] More: John Sexton.

Commenter @Living4Winter on Twitter: “It’s so fricken weird when Ayn Rand comes true.” On Monday the Seattle city council voted 5-4 to approve the tax; a final vote will come later and Mayor Jenny Durkan has signaled that she may veto the measure. [KOMO] Update: the council unanimously adopts a tax set lower, at $275 rather than $500 per worker. [Matt Day and Daniel Beekman, Seattle Times]

More: Eugene Volokh with a more thorough First Amendment legal analysis (Working Washington’s theory “would criminalize a vast range of ordinary political action” including “an advocacy group’s threatening to boycott a city if the city council doesn’t change some law that the threatener thinks unjust.”)

April 4 roundup

A tale of targeted property taxes

Congratulations! You may not have realized it was happening, but your municipality has put you in a special revitalization zone which means the property taxes you owe them will quintuple. That’s the message some suburban Maryland business owners got recently, subject of my new Cato piece. Excerpt:

Specialists in local and state government policy are full of ideas for business-by-business and location-by-location tinkering with tax rates, both downward (as part of incentive packages to lure relocating businesses) and upward (to finance special public services provided in some zones, such as downtown revitalization). But there is a distinct value in terms of both public legitimacy and the rule of law in having uniform and consistent taxation that does not depend on whether a property owner or business is on the ins or on the outs with the tax-setting authorities.

March 7 roundup

  • What’s worse than undermining Section 230, charter of Internet freedom? Turning it all into a pinata for trial lawyers [No go, NRO; earlier on SESTA and FOSTA] Carve-out to Section 230 in name of fighting sex trafficking could erode protection for other businesses against being sued [WSJ editorial] More: Karol Markowicz;
  • “If You Owe the IRS Over $51,000, It Can Trap You in the United States” [Brian Doherty, Reason]
  • How far can a theft ring go in stealing a rental vehicle before the police step in? [related Twitter threads, Sharky Laguana and Noah Lehmann-Haupt]
  • “Federalism as a Check on Executive Authority,” panel at Federalist Society 2017 Annual Texas Chapters Conference with Caitlin Halligan, Scott Keller, Ernest Young, moderated by Hon. Jeff Brown [video]
  • Revisiting an auto scare: “Will the Corvair Kill You?” [Larry Webster, Hagerty, earlier here and here]
  • No, peacocks-in-the-airline-cabin isn’t really some failure of “fetishizing [individualism over] communal well-being.” It’s a failure of collectivized legal compulsion overriding contract and choice [David Leonhardt, New York Times; Elizabeth Preske, Travel and Leisure on underlying episode; earlier on emotional-support and other service animals]

Law enforcement for profit roundup

  • “When you find yourself threatening to find more reasons to put even more citizens in jail in order to protect your revenue stream, it’s maybe time to take a step back and think about what you’re doing.” [Scott Shackford on Alabama forfeiture debate]
  • How IRS spent $20 million on debt collection program that generated $6.7 million in payments [Howard Gleckman, Tax Policy Center]
  • “Federal Judge Strikes Down New York City’s Dragnet That Seized Thousands Of Cars Without Warrants” [Nick Sibilla, IJ/Forbes]
  • Prison phone calls and other captive markets: “Stop squeezing prisoners’ families for cash” [Megan McArdle]
  • “The high price of being wrongly accused in Alabama’s ‘monetized’ criminal justice system” [Ashley Remkus, Al.com]
  • “Cop Who Called Asset Forfeiture ‘A Tax-Liberating Goldmine’ Sued for Illegal Traffic Stop and Seizure” [C.J. Ciaramella; Kane County, Ill.]

South Dakota v. Wayfair: can states collect sales tax from out-of-state merchants?

David Post at Volokh Conspiracy has written an explanation and defense of the Supreme Court’s holding, in 1992’s Quill v. North Dakota, “that a State may not require out-of-state sellers of goods or services to collect that State’s sales/use tax, unless the out-of-state seller has some ‘physical presence’ in the State – a retail outlet, warehouse, office, or the like” This term’s case of South Dakota v. Wayfair invites the Court to retreat from that holding. The Quill rule is often criticized for privileging online commerce unfairly over brick-and-mortar, but the contrary rule, says Post, would tend to do the reverse by sinking small online retailers under impossible regulatory burdens. A foretaste of those burdens:

South Dakota’s law, however, does not merely require her [an Idaho woman with a web storefront selling crafted iPhone cases] to collect South Dakota’s sales tax; it subjects her to the full range of South Dakota’s tax and regulatory jurisdiction, including the panoply of South Dakota’s licensing, recordkeeping, and registration requirements, and would, among other things, make her subject to periodic audit by the South Dakota Department of Revenue – which, in many States, requires an in-person appearance before the Revenue Board.

And of course if the Court discards the Quill rule and upholds South Dakota’s law, we can expect other jurisdictions to follow suit.

There are more than 6,000 taxing jurisdictions. Post argues that congressional action is needed, rather than a free-for-all of local taxing power.

Brad Smith: looking back at the IRS targeting scandal

Brad Smith, a former commissioner of the Federal Elections Commission, in the Washington Examiner:

…what we are now seeing is an outright attempt to rewrite history so as to whitewash the entire affair. Newsweek has gone so far as to call the scandal “fake news,” with one of its columnists calling it “a lie.” A Dec. 29 editorial by the Washington Post claims that there was “mismanagement … but not deliberate targeting.”…

The IRS itself eventually conceded that of 199 cases analyzed under this “Be On the Look Out,” or “BOLO” program, approximately 75 percent [150] “appear to be conservative leaning, while fewer than 10 appear to be liberal/progressive leaning groups.” In other words, the fact that the terms the IRS used to pull applications for extra scrutiny — terms such as “Tea Party” and “patriot” — snagged a few liberal groups doesn’t mean that the purpose and effect was not to target conservative organizations.

As the basis for whitewashing the IRS scandal, Newsweek, the Washington Post, and others have turned to a new TIGTA report concerning a different IRS program altogether. That program, called “Touch and Go,” swept up a mix of conservative and progressive groups. But that is precisely because it didn’t target groups based on politics, which was the problem with BOLO. Nothing in the latest TIGTA report contradicts TIGTA’s 2013 report revealing the IRS targeting, and TIGTA doesn’t claim that it does.

Earlier here, here, etc.