Review: The Essence of Property Law

Part II of this essay will outline my overall approach to teaching Property and the inherent challenges of the subject. Part III sets out the topics covered in my property classes and the relevance of the “bundle of rights” concept. Part IV describes my use of the problem method in teaching Property and counters the purported disadvantages of applying that method. That part also demonstrates the practical use of the problem approach. Part V examines the evolutionary nature of property law and looks at three areas of law: landlord and tenant relationships, the law of servitudes, and future interests

The Charitable Contribution Deduction: A Historical Review and a Look to the Future

A taxpayer is entitled to a charitable contribution deduction for gifts of money or property made during the taxable year to nonprofit organizations. Part II of this article explores the history of U.S. Internal Revenue Code §170 from its initial enactment in 1917 through the numerous amendments since made. This part does not outline every amendment that Congress has enacted but provides sufficient detail to illustrate how the section has gone from a fairly simple provision to an extremely complex set of rules. Part III addresses various equity considerations. The first issue examined is whether charities have societal value that should be encouraged or subsidized under the Code. Alternatively, this article considers the use of direct expenditures as the primary means of the government\u27s subsidization of charitable organizations and discusses the constitutional roadblocks to direct expenditures. Part III also addresses whether the complex rules that exist today are necessary to achieve the statutory objectives. It also addresses how the charitable contribution deduction fails to further the needs of the poor and whether the provisions should be amended to provide an additional incentive for taxpayers to make contributions to organizations that are designed to combat poverty. Finally, this part addresses how the charitable contribution rules impact the progressive tax structure and how the current scheme is inconsistent with progressive taxation. Part IV considers perspectives on the future of charitable giving. This part analyzes the impact of the elimination of the estate tax and addresses whether Congress should enhance the incentives for charitable giving in light of the phaseout of the estate tax. This might be necessary if the repeal of the estate tax is made permanent. Finally, this part addresses whether Congress must make some statutory adjustments to the charitable contribution rules to protect the integrity of the progressive tax structure

Tax Planning for Retirement

As increasing life expectancy and inflation diminish the purchasing power of retirement savings, careful tax planning to maximize funds available to seniors is necessary. Lindsey discusses the taxation of various types of retirement income including traditional and Roth IRAs and Social Security benefits, and explains how careful planning can reduce income and estate taxes. The disparate effects of state income and estate taxes are also explored

Tax Planning for Retirement

As increasing life expectancy and inflation diminish the purchasing power of retirement savings, careful tax planning to maximize funds available to seniors is necessary. Lindsey discusses the taxation of various types of retirement income including traditional and Roth IRAs and Social Security benefits, and explains how careful planning can reduce income and estate taxes. The disparate effects of state income and estate taxes are also explored

The Widening Gap Under the Internal Revenue Code: The Need for Renewed Progressivity

The United States\u27 progressive tax system has been a part of the income tax structure since the enactment of the historic 1913 income tax act and should continue to be maintained today for several reasons. First, a change in the tax system could have adverse effects on minorities and women. Second, the tax system is based on an ability to pay concept, and it is difficult to devise a system that adheres to that principle yet satisfies revenue demands and other considerations. While there have been significant societal changes since the country adopted the progressive tax structure, these changes do not warrant a modification of the current scheme of taxation. One significant change is the creation of the global society. It is apparent that globalization has increased competition amongst countries. One argument that has been asserted is that countries that use the progressive tax system and countries that tax capital could lose business to lower taxing countries. However, it is premature to conclude that globalization warrants a retrenchment from this country\u27s use of the progressive tax structure. Several of our country\u27s competitors maintain progressive tax structures, impose higher marginal rates and tax capital. During the last twenty years, the after-tax income of taxpayers in the top 10 income has increased while it has decreased for lower income taxpayers in the United States. The trend of reduced progressivity between the wealthiest taxpayers and others has been corrected to some degree by statutory enactments such as Roth IRAs and educational IRAs. While Congress has made some advances toward reversing the recent trends in tax distribution, additional steps toward ensuring progressivity are required for the low to middle income taxpayers. The most equitable approach would be to reduce the lowest tax rate to 10 percent for every taxpayer. This is both a viable and an equitable approach. It provides a tax cut to almost every taxpayer, but the tax cut is implemented in a manner that preserves the integrity of the progressive tax scheme

Encouraging Savings Under the Earned Income Tax Credit: A Nudge in the Right Direction

During 2007, 3.6 million or 9.7% of people in the United States age 65 or older were below the poverty level. In light of the number of elderly people living below the poverty level, it is important that everyone, including low-income workers, have the opportunity to save for retirement. Low-income workers face many challenges to saving for retirement. The barriers to saving include the lack of access to retirement plans and lack of investment savvy. For example, only 42% of workers employed in service occupations in the private industry have access to employer retirement plans. The percentage drops to 39% for part-time employees. This Article proposes that the earned income tax credit (EITC) be expanded to encourage saving to help reduce the poverty level. The Article argues that the EITC should be structured to “nudge” low-income workers to invest in retirement plans and individual retirement accounts to lower the likelihood that they will live below the poverty level at retirement. The Article then discusses the importance of saving and the ways in which the government has encouraged lower income workers to accumulate wealth. Because these efforts have not succeeded in increasing the savings rate of low-income workers, the government must take additional measures to encourage them to save. This Article outlines a detailed plan for the adoption of a saving component to the EITC and outlines the importance of automatic contributions in conjunction with the EITC to maximize the success of the saving component. The plan also includes a government match in certain circumstances but requires forfeiture of the match for early withdrawals