Preface

PART I: INTRODUCTION TO THE FEDERAL INCOME TAX

A. A Historical Perspective

Randolph E. Paul, Taxation in the United States (1954)

John F. Witte, The Politics and Development of the Federal Income Tax (1985)

C. Eugene Steuerle, The Tax Decade: How Taxes Came to Dominate the Public Agenda (1992)

Marjorie E. Kornhauser, The Morality of Money: American Attitudes Toward Wealth and the Income Tax, 70 Ind. L.J. 119 (1994)

B. The Tax Legislative Process

1. Overview

Ronald A. Pearlman, The Tax Legislative Process: 1972-1992,57 Tax Notes 939 (1992)

Kenneth W. Gideon, Tax Policy at the Treasury Department: A 20-Year Perspective, 57 Tax Notes 889 (1992)

Paul L. Caron, Tax Myopia, or Mamas Don't Let Your Babies Grow Up To Be Tax Lawyers, 13 Va. Tax Rev. 517 (1994)

2. Interpreting the Internal Revenue Code

Paul L. Caron, Tax Myopia, or Mamas Don't Let Your Babies Grow Up To Be Tax Lawyers, 13 Va. Tax Rev. 517 (1994)

Lawrence Zelenak, Thinking About Nonliteral Interpretations of the Internal Revenue Code, 64 N.C. L. Rev. 623 (1986)

Deborah A. Geier, Interpreting Tax Legislation: The Role of Purpose, 2 Fla. Tax Rev. 492 (1995)

Michael Livingston, Congress, the Courts, and the Code: Legislative History and the Interpretation of Tax Statutes, 69 Tex. L. Rev. 819 (1991)

3. Legislative Process Theory

Jeffrey H. Birnbaum & Alan S. Murray, Showdown at Gucci Gulch: Lawmakers, Lobbyists, and the Unlikely Triumph of Tax Reform (1987)

Richard L. Doernberg & Fred S. McChesney, Doing Good or Doing Well? Congress and the Tax Reform Act of 1986, 62 N.Y.U. L. Rev. 891 (1987)

Daniel Shaviro, Beyond Public Choice and Public Interest: A Study of the Legislative Process as Illustrated by Tax Legislation in the 1980s, 139 U. Pa. L. Rev. 1 (1990)

Edward A. Zelinsky, James Madison and Public Choice at Gucci Gulch: A Procedural Defense of Tax Expenditures and Tax Institutions, 102 Yale L.J. 1165 (1993)

4. Revenue Estimates and Distributional Tables

Michael D. Bopp, The Roles of Revenue Estimation and Scoring in the Federal Budget Process, 56 Tax Notes 1629 (1992)

Michael J. Graetz, Paint-By-Numbers Tax Lawmaking, 95 Colum. L. Rev. 609 (1995)

C. The Tax Administrative Process

Linda Galler, Judicial Deference to Revenue Rulings: Reconciling Divergent Standards, 56 Ohio St. L.J. 1037 (1995)

Paul L. Caron, Tax Myopia Meets Tax Hyperopia: The Unproven Case Of Increased Judicial Deference To Revenue Rulings, 57 Ohio St. L.J. 637 (1996)

D. The Tax Litigation Process

Erwin N. Griswold, The Need for a Court of Tax Appeals, 57 Harv. L. Rev. 1153 (1944)

William D. Popkin, Why a Court of Tax Appeals is So Elusive, 47 Tax Notes 1101 (1990)

PART II: INCOME

A. The Definition of Income

JB McCombs, An Historical Review and Analysis of Early United States Tax Policy Scholarship: Definition of Income and Progressive Rates, 64 St. John's L. Rev. 471 (1990)

Victor Thuronyi, The Concept of Income, 46 Tax L. Rev. 45 (1990)

B. Progressivity

Walter J. Blum & Harry Kalven, Jr., The Uneasy Case for Progressive Taxation, 19 U. Chi. L. Rev. 417 (1952)

Joseph Bankman & Thomas Griffith, Social Welfare and the Rate Structure: A New Look at Progressive Taxation, 75 Cal. L. Rev. 1905 (1987)

Donna M. Byrne, Progressive Taxation Revisited, 37 Ariz. L. Rev. 739 (1995)

Marjorie E. Kornhauser, The Rhetoric of the Anti-Progressive Income Tax Movement: A Typical Male Reaction, 86 Mich. L. Rev. 465 (1987)

C. Imputed Income

Donald B. Marsh, The Taxation of Imputed Income, 58 Pol. Sci. Q. 514 (1943)

Thomas Chancellor, Imputed Income and the Ideal Income Tax, 67 Or. L. Rev. 561 (1988)

D. Gifts, Bequests, and Inheritances

John K. McNulty, A Transfer Tax Alternative: Inclusion Under the Income Tax, 4 Tax Notes 24 (1976)

Lawrence Zelenak, Taxing Gains at Death, 46 Vand. L. Rev. 361 (1993)

Joseph M. Dodge, Further Thoughts on Realizing Gains and Losses at Death, 47 Vand. L. Rev. 1827 (1994)

E. Personal Injury Damage Awards

Jennifer J.S. Brooks, Developing a Theory of Damage Recovery Taxation, 14 Wm. Mitchell L. Rev. 759 (1988)

Mary L. Heen, An Alternative Approach to the Taxation of Employment Discrimination Recoveries Under Federal Civil Rights Statutes: Income from Human Capital, Realization, and Nonrecognition, 72 N.C. L. Rev. 549 (1994)

Douglas A. Kahn, Compensatory and Punitive Damages for a Personal Injury: To Tax or Not to Tax?, 2 Fla. Tax Rev. 327 (1995)

F. Debt and Discharge of Indebtedness Income

William D. Andrews, On Beyond Tufts, 61 Taxes 949 (1983)

Erik M. Jensen, The Unanswered Question in Tufts: What Was the Purchaser's Basis?, 10 Va. Tax Rev. 455 (1991)

Deborah A. Geier, Tufts and the Evolution of Debt-Discharge Theory, 1 Fla. Tax Rev. 115 (1992)

Babette B. Barton, Legal and Tax Incidents of Compulsive Behavior: Lessons from Zarin, 45 Tax Law. 749 (1992)

PART III: TIMING OF INCOME

A. Realization

William D. Andrews, The Achilles' Heel of Income Taxation, in New Directions in Federal Tax Policy for the 1980s 278 (Charls E. Walker & Mark A. Bloomfield eds., 1983)

Patricia D. White, Realization, Recognition, Reconciliation, Rationality and the Structure of the Federal Income Tax System, 88 Mich. L. Rev. 2034 (1990)

Boris I. Bittker & Stephen B. Kanner, The Tax Benefit Rule, 26 UCLA L. Rev. 265 (1978)

Daniel N. Shaviro, An Efficiency Analysis of Realization and Recognition Rules Under the Federal Income Tax, 48 Tax L. Rev. 1 (1992)

Thomas L. Evans, The Realization Doctrine After Cottage Savings, 70 Taxes 897 (1992)

B. Curbing Deferral

David J. Shakow, Taxation Without Realization: A Proposal for Accrual Taxation, 134 U. Pa. L. Rev. 1111 (1986)

Mary Louise Fellows, A Comprehensive Attack on Tax Deferral, 88 Mich. L. Rev. 722 (1990)

Reed Shuldiner, Indexing the Tax Code, 48 Tax L. Rev. 537 (1993)

Robert H. Scarborough, Risk, Diversification and the Design of the Loss Limitations Under a Realization-Based Income Tax, 48 Tax L. Rev. 677 (1993)

C. Time Value of Money

1. Overview

Peter C. Canellos & Edward D. Kleinbard, The Miracle of Compound Interest: Interest Deferral and Discount After 1982, 38 Tax L. Rev. 565 (1983)

Lawrence Lokken, The Time Value of Money Rules, 42 Tax L. Rev. 9 (1986)

Daniel I. Halperin, Interest in Disguise: Taxing the "Time Value of Money," 95 Yale L.J. 506 (1986)

Alvin C. Warren, Jr., The Timing of Taxes, 39 Nat'l Tax J. 499 (1986)

2. Advance Payments

Alan Gunn, Matching of Costs and Revenues as a Goal of Tax Accounting, 4 Va. Tax Rev. 1 (1984)

William A. Klein, Tailor to the Emperor with No Clothes: The Supreme Court's Tax Rules for Deposits and Advance Payments, 41 UCLA L. Rev. 1685 (1994)

George K. Yin, Of Indianapolis Power and Light and the Definition of Debt: Another View, 11 Va. Tax Rev. 467 (1991)

3. Future Costs

NoNl B. Cunningham, A Theoretical Analysis of the Tax Treatment of Future Costs, 40 Tax L. Rev. 577 (1985)

D. New Financial Instruments

Reed Shuldiner, A General Approach to the Taxation of Financial Instruments, 71 Tex. L. Rev. 243 (1992)

Alvin C. Warren, Jr., Financial Contract Innovation and Income Tax Policy, 107 Harv. L. Rev. 460 (1993)

PART IV: PERSONAL DEDUCTIONS

A. The Role of Personal Deductions

William D. Andrews, Personal Deductions in an Ideal Income Tax, 86 Harv. L. Rev. 309 (1972)

Mark G. Kelman, Personal Deductions Revisited: Why They Fit Poorly in an "Ideal" Income Tax and Why They Fit Worse in a Far from Ideal World, 31 Stan. L. Rev. 831 (1979)

Thomas D. Griffith, Theories of Personal Deductions in the Income Tax, 40 Hastings L.J. 343 (1989)

William J. Turnier, Evaluating Personal Deductions in an IncomeTax-The Ideal, 66 Cornell L. Rev. 262 (1981)

B. Tax Expenditure

Stanley S. Surrey, Federal Income Tax Reform: The Varied Approaches Necessary to Replace Tax Expenditures with Direct Governmental Assistance, 84 Harv. L. Rev. 352 (1970)

Stanley S. Surrey & Paul R. McDaniel, The Tax Expenditure Concept: Current Developments and Emerging Issues, 20 B.C. L. Rev. 225 (1979)

Boris I. Bittker, Accounting for Federal "Tax Subsidies" in the National Budget, 22 Nat'l Tax J. 244 (1969)

Victor Thuronyi, Tax Expenditures: A Reassessment, 1988 Duke L.J. 1155

Douglas A. Kahn & Jeffrey S. Lehman, Tax Expenditure Budgets: A Critical View, 54 Tax Notes 1661 (1991)

C. The Role of Mixed Business and Personal Deductions

William A. Klein, The Deductibility of Transportation Expenses of a Combination Business and Pleasure Trip-A Conceptual Analysis, 18 Stan. L. Rev. 1099 (1966)

Daniel I. Halperin, Business Deductions for Personal Living Expenses: A Uniform Approach to an Unsolved Problem, 122 U. Pa. L. Rev. 859 (1974)

D. Miscellaneous Personal Deductions

1. Charitable Contributions

Paul R. McDaniel, Federal Matching Grants for Charitable Contributions: A Substitute for the Income Tax Deduction, 27 Tax L. Rev. 377 (1972)

Boris I. Bittker, Charitable Contributions: Tax Deductions or Matching Grants?, 28 Tax L. Rev. 37 (1972)

C. Eugene Steuerle & Martin A. Sullivan, Toward More Simple and Effective Giving: Reforming the Tax Rules for Charitable Contributions and CharitableOrganizations, 12 Am. J. Tax Pol'y 399 (1995)

2. Educational Expenses

John K. McNulty, Tax Policy and Tuition Credit Legislation: Federal Income Tax Allowances for Personal Costs of Higher Education, 61 Cal. L. Rev. 1 (1973)

Charlotte Crane, Scholarships and the Federal Income Tax Base, 28 Harv. J. on Legis. 63 (1991)

3. Interest Deduction

Michael J. McIntyre, An Inquiry into the Special Status of Interest Payments, 1981 Duke L.J. 765

William A. Klein, Borrowing to Finance Tax-Favored Investments, 1962 Wis. L. Rev. 608

4. Casualty Loss and Medical Expense Deduction

Louis Kaplow, The Income Tax as Insurance: The Casualty Loss and Medical Expense Deductions and the Exclusion of Medical Insurance Premiums, 79 Cal. L. Rev. 1485 (1991)

PART V: BUSINESS AND INVESTMENT DEDUCTIONS

A. Capitalization

Alan Gunn, The Requirement that a Capital Expenditure Create or Enhance an Asset, 15 B.C. Indus. & Com. L. Rev. 443 (1974)

John W. Lee & Nina R. Murphy, Capital Expenditures: A Result in Search of a Rationale, 15 U. Rich. L. Rev. 473 (1981)

John W. Lee, Doping Out the Capitalization Rules After INDOPCO, 57 Tax Notes 669 (1992)

Calvin H. Johnson, Capitalization After the Government's Big Win in INDOPCO, 63 Tax Notes 1323 (1994)

B. Depreciation

1. Accelerated Depreciation

Douglas A. Kahn, Accelerated Depreciation-Tax Expenditure or Proper Allowance for Measuring Net Income?, 78 Mich. L. Rev. 1 (1979)

Walter J. Blum, Accelerated Depreciation: A Proper Allowance for Measuring Net Income?!!, 78 Mich. L. Rev. 1172 (1980)

Douglas A. Kahn, Accelerated Depreciation Revisited-A Reply to Professor Blum, 78 Mich. L. Rev. 1185 (1980)

John P. Steines, Income Tax Allowances for Cost Recovery, 40 Tax L. Rev. 483 (1985)

2. Tax Shelters

Lawrence Zelenak, When Good Preferences Go Bad: A Critical Analysis of the Anti-Tax Shelter Provisions of the Tax Reform Act of 1986, 67 Tex. L. Rev. 499 (1989)

Calvin H. Johnson, Why Have Anti-Tax Shelter Legislation? A Response to Professor Zelenak, 67 Tex. L. Rev. 591 (1989)

Lawrence Zelenak, Do Anti-Tax Shelter Rules Make Sense? A Reply to Professor Johnson, 68 Tex. L. Rev. 491 (1989)

Theodore S. Sims, Debt, Accelerated Depreciation, and the Tale of a Teakettle: Tax Shelter Abuse Reconsidered, 42 UCLA L. Rev. 263 (1994)

Calvin H. Johnson, Inefficiency Does Not Drive Out Inequity: Market Equilibrium & Tax Shelters, 71 Tax Notes 377 (1996)

3. Intangible Property

George Mundstock, Taxation of Business Intangible Capital, 135 U. Pa. L. Rev. 1179 (1987)

4. Self-Constructed Property

NoNl B. Cunningham & Deborah H. Schenk, How to Tax the House that Jack Built, 43 Tax L. Rev. 447 (1988)

C. Human Capital

Paul B. Stephan III, Federal Income Taxation and Human Capital, 70 Va. L. Rev. 1357 (1984)

Louis Kaplow, On the Divergence Between "Ideal" and Conventional Income-Tax Treatment of Human Capital, 86 Am. Econ. Ass'n Paper & Proc. 347 (1996)

PART VI: CAPITAL GAINS AND LOSSES

A. History

Marjorie Kornhauser, The Origins of Capital Gains Taxation: What's Law Got to Do with It?, 39 Sw. L.J. 869 (1985)

Anita Wells, Legislative History of Treatment of Capital Gains Under the Federal Income Tax, 1913-1948, 2 Nat'l Tax J. 12 (1949)

Arthur P. Hall, Fifty Years of the Capital Gains Tax Burden, 67 Tax Notes 553 (1995)

B. Policy

William D. Popkin, The Deep Structure of Capital Gains, 33 Case W. Res. L. Rev. 153 (1983)

NoNl B. Cunningham & Deborah H. Schenk, The Case for a Capital Gains Preference, 48 Tax L. Rev. 319 (1993)

James R. Repetti, Long-Term Capital Gains, The Long-Term Investment Perspective, and Corporate Productivity, 49 Tax Notes 85 (1990)

John W. Lee, Capital Gains Myths, 67 Tax Notes 809 (1995)

C. Indexation

Michael C. Durst, Inflation and the Tax Code: Guidelines for Policymaking, 73 Minn. L. Rev. 1217 (1989)

Reed Shuldiner, Indexing the Tax Code, 48 Tax L. Rev. 537 (1993)

Charles J. Cooper, Michael A. Carvin & Vincent J. Colatriano, The Legal Authority of the Department of the Treasury to Promulgate a Regulation Providing for the Indexation of Capital Gains, 12 Va. Tax Rev. 631 (1993)

PART VII: RACE, CLASS, AND GENDER

A. Married Couples

Boris I. Bittker, Federal Income Taxation and the Family, 27 Stan. L. Rev. 1389 (1975)

Michael J. McIntyre & Oliver Oldman, Taxation of the Family in a Comprehensive and Simplified Income Tax, 90 Harv. L. Rev. 1573 (1977)

Pamela B. Gann, Abandoning Marital Status as a Factor in Allocating Income Tax Burdens, 59 Tex. L. Rev. 1 (1980)

Marjorie E. Kornhauser, Love, Money and the IRS: Family, Income-Sharing and the Joint Income Tax Return, 45 Hastings L.J. 63 (1993)

B. Women

Boris I. Bittker, Federal Income Taxation and the Family, 27 Stan. L. Rev. 1389 (1975)

Edward J. McCaffery, Taxation and the Family: A Fresh Look at Behavioral Gender Biases in the Code, 40 UCLA L. Rev. 983 (1993)

June O'Neill, Family Issues in Taxation, in Taxing the Family 1 (Rudolph G. Penner ed., 1983)

C. Children

Lawrence Zelenak, Children and the Income Tax, 49 Tax L. Rev. 349 (1994)

Gerard M. Brannon & Elliott R. Morss, The Tax Allowance for Dependents: Deductions Versus Credits, 26 Nat'l Tax J. 599 (1973)

C. Eugene Steuerle, The Tax Treatment of Households of Different Size, in Taxing the Family 73 (Rudolph G. Penner ed., 1983)

Mary L. Heen, Welfare Reform, Child Care Costs, and Taxes: Delivering Increased Work-Related Child Care Benefits to Low-Income Families, 13 Yale L. & Pol'y Rev. 173 (1995)

D. Poor and Elderly

James Tobin, Joseph A. Pechman & Peter M. Mieszkowski, Is a Negative Income Tax Practical?, 77 Yale L.J. 1 (1967)

George K. Yin & Jonathan Barry Forman, Redesigning the Earned Income Tax Credit Program to Provide More Effective Assistance for the WorkingPoor, 59 Tax Notes 951 (1993)

Anne L. Alstott, The Earned Income Tax Credit and the Limitations of Tax-Based Welfare Reform, 108 Harv. L. Rev. 533 (1995)

Jonathan Barry Forman, Reconsidering the Income Tax Treatment of the Elderly, 56 U. Pitt. L. Rev. 589 (1995)

E. Racial Minorities

Dorothy A. Brown, The Marriage Bonus/Penalty in Black and White, in Taxing America 45 (Karen B. Brown & Mary Louise Fellows eds., 1996)

John A. Powell, How Government Tax and Housing Policy Have Racially Segregated America, in Taxing America 80 (Karen B. Brown & Mary Louise Fellows eds., 1996)

F. Gays and Lesbians

Patricia A. Cain, Same-Sex Couples and the Federal Tax Laws, 1 Law & Sexuality 97 (1991)

Adam Chase, Tax Planning for Same-Sex Couples, 72 Denv. U. L. Rev. 359 (1995)

PART VIII: ALTERNATIVES TO THE CURRENT FEDERAL INCOME TAX

A. The Existing Hybrid

Alan Gunn, The Case for an Income Tax, 46 U. Chi. L. Rev. 370 (1979)

Edward J. McCaffery, Tax Policy Under a Hybrid Income-Consumption Tax, 70 Tex. L. Rev. 1145 (1992)

Joseph Isenbergh, The End of Income Taxation, 45 Tax L. Rev. 283 (1990)

B. A Consumption Tax

1. Consumption Versus Income

William D. Andrews, A Consumption-Type or Cash Flow Personal Income Tax, 87 Harv. L. Rev. 1113 (1974)

Alvin C. Warren, Jr., Fairness and a Consumption-Type or Cash Flow Personal Income Tax, 88 Harv. L. Rev. 931 (1975)

William D. Andrews, Fairness and the Personal Income Tax: A Reply to Professor Warren, 88 Harv. L. Rev. 947 (1975)

Alvin Warren, Would a Consumption Tax Be Fairer Than an Income Tax?, 89 Yale L.J. 1081 (1980)

2. Transitional Issues

Michael J. Graetz, Implementing a Progressive Consumption Tax, 92 Harv. L. Rev. 1575 (1979)

Avishai Shachar, From Income to Consumption Tax: Criteria for Rules of Transition, 97 Harv. L. Rev. 1581 (1984

C. A Value-Added Tax (VAT)

1. VAT Concept and Fiscal Policy

James M. Bickley, The Value-Added Tax: Concepts, Issues and Experience, 47 Tax Notes 447 (1990)

Sijbren Cnossen, Value-Added Tax: Questions and Answers, 42 Tax Notes 209 (1989)

Charles E. McLure, Jr., The Value-Added Tax: Key to Deficit Reduction?, 35 Tax Notes 83 (1987)

Laurence J. Kotlikoff, The Case for the Value-Added Tax, 39 Tax Notes 239 (1988)

2. Implementing a VAT

William J. Turnier, Designing an Efficient Value Added Tax, 39 Tax L. Rev. 435 (1984)

Alan Schenk, Value Added Tax: Does This Consumption Tax Have a Place in the Federal Tax System?, 7 Va. Tax Rev. 207 (1987)

D. Current Proposals

1. Overview

Joint Committee on Taxation, Description and Analysis of Proposals to Replace Federal Income Tax (JCS-18-95), 104th Cong., 1st Sess. (1995)

Michael J. Graetz, Current Flat Tax Proposals, 67 Tax Notes 1256 (1995)

2. A Flat Tax

Robert E. Hall & Alvin Rabushka, The Flat Tax (2d ed. 1995)

Richard A. Musgrave, Clarifying Tax Reform, 70 Tax Notes 731 (1996)

3. USA Tax System

Alliance USA, USA Tax System: Description and Explanation of the Unlimited Savings Allowance [USA] Income Tax System, reprinted in66 Tax Notes 1485 (1995)

Louis Kaplow, Recovery of Pre-Enactment Basis under a Consumption Tax: The USA Tax System, 68 Tax Notes 1109 (1995)

4. Kemp Commission

National Commission on Economic Growth and Tax Reform, Unleashing America's Potential: A Pro-Growth, Pro-Family Tax System for the 21st Century, reprinted in 70 Tax Notes 413 (1996)

Eric Toder, A Flat Tax that Falls Flat, 70 Tax Notes 613 (1996)

Paul L. Caron

Grayson M.P. McCouch

Karen C. Burke