33 research outputs found
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Disrupting Venture Capital: Carrots, Sticks, and Artificial Intelligence
Despite the massive dollars invested each year by Venture Capital (VC) firms, more than two-thirds of the companies they fund will provide zero return. More problematic, less than 3% of VC funds go to female-led startup teams, and less than 1% to racially diverse founders. While many argue that this underrepresentation will work itself out over time, in reality, these numbers have remained stagnant for over 30 years. This is especially perverse given that diverse startups, when funded, appreciably outperform male-only founding teams.
The VC industry operates under an antiquated model of investing in founders with demographics reflecting those of VC partners (white men control 93% of VC funds, and only 0.2% of VC partners are Black or Latina women). While antidiscrimination law intended to create a level playing field for all, the VC field operates outside this regulatory scheme. In addition to its lack of diversity, ironically it also has a technology problem. Despite the incredible advances in artificial intelligence (AI), and the industry’s focus on tech startups, many VC firms fail to incorporate data analytics and machine learning to guide their decision- making, relying instead on “gut instinct.” This is the first article to comprehensively explore the current state of the VC industry through the lens of behavioral law and economic theory, revealing the field's intransigence and the heuristics and biases infecting its decision-making.
Using insights gained from this analysis, this Article suggests that disruption is possible through a combination of policy and legal initiatives as well as leveraging advances in technology. The Article concludes by offering a novel multipronged solution comprised of a combination of carrots (incentives), sticks (penalties), and AI to motivate behavioral change within the VC industry and stimulate a true meritocracy where gender and racially diverse startups are equitably funded, and innovation flourishes
Northwestern, O\u27Bannon and The Future: Cultivating a New Era for Taxing Qualified Scholarships
On March 26, 2014, the National Labor Relations Board (NLRB) ruled that Northwestern University’s scholarship football players were employees of the institution and could unionize and bargain collectively. From a federal income tax perspective, the significance of the NLRB decision—at that time—was that it could redefine the principle that select student-athletes are no longer unpaid amateurs receiving qualified scholarships, but instead are employees of their institutions, earning scholarship funds in exchange for services rendered as college athletes. Accordingly, a crucial question arising from the NLRB holding was whether the Internal Revenue Service could logically continue to treat qualified scholarships received by student-athletes as excludable from gross income. To analyze the potential effects of federal income tax on qualified scholarships in the future, this Article provides a brief judicial history of the pay-for-play model, analyzes the language of the Internal Revenue Code as it applies to qualified scholarships, evaluates the potential characterization of student-athletes as employees, and concludes that defining student-athletes as employees of their institutions could cultivate a new era in taxing qualified scholarships from a federal income tax perspective
The Environmentally Conscious Skies: Did the European Union’s Game of Brinksmanship Lead to a Viable Global Plan for Emissions Trading in Aviation?
Effective January 1, 2012, the European Union (EU) instituted the first emissions trading scheme (ETS) for aviation, which affected the domestic and international commercial airlines flying into and out of the EU. The EU established the ETS to counter the global aviation sector’s role in releasing greenhouse gas (GHG) emissions; however, such measures were met with heavy opposition by foreign countries, the International Civil Aviation Organization (ICAO), various commercial airlines and the Air Transport Association of America (ATA). This Article analyzes the legality of the EU’s unilateral ETS approach with respect to the commercial airline industry, examines the subsequent development of the ICAO’s global market based members (MBM) program, reviews strategic political strategies implemented by foreign nations to counter the EU’s unilateral action, evaluates the ICAO’s recent developments in instituting a global trading scheme to reduce GHG emissions, and analyzes policy issues with respect to the ICAO’s MGM program as it applies to the EU ETS
Applying Sustainability to Tax
This Article argues that sustainability can and should be applied to taxation to ameliorate the effects of industrialization on society and the planet. In making the case for a sustainability approach to taxation, we suggest that prior approaches to tax policy analysis have been insufficiently interdisciplinary and have failed to fully embrace challenging normative questions that underpin tax. Using sustainability literature from other disciplines, we show how sustainability can provide a superior approach. Specifically, sustainability requires an examination of foundational, normative questions, integration of interdisciplinary collaboration, embrace of long-term solutions, and adaptation to an ever-evolving technological society. Using these attributes as a guide, we introduce a series of questions to prompt tax scholars to consider how tax policy can support the society that we wish to sustain