Holiday Book Bonanza ’09:
Edward Zelinsky
Edward Zelinsky shares two of his favorite books, The Federalist Papers and Casey at Bat.
Will Congress penalize colleges that increase tuition?
Senator Charles Grassley of Iowa will serve as chairman of the Senate Finance Committee during the upcoming 115th Congress. Senator Grassley’s decision to lead the Finance Committee may have important consequences for the nation’s colleges and universities.
It’s time to raise the retirement age again
Since the election, we Americans have engaged in a healthy debate about the Electoral College. My instincts in this debate are those of an institutional conservative: Writing our Constitution from scratch today, we would not have designed the Electoral College as it has evolved. However, institutions become embedded in societies. To further this debate, consider these three contentions often heard today about the Electoral College.
John Kerry and the Logan Act
The Logan Act won’t go away. Most recently, prominent commentators criticized former Secretary of State John Kerry’s conversations with the leaders of Iran, arguing that such discussions violated the Logan Act.
Does TCJA Tax Churches? Should It?
Does the new federal tax law, commonly known as the Tax Cut and Jobs Act (TCJA), tax churches as some have argued? If so, is this tax appropriate? The answers are “yes” and “yes.” The TCJA provisions taxing qualified transportation fringes treat secular and religious employers alike, including houses of worship. In a world of […]
Why I Oppose the National Popular Vote Interstate Compact
Connecticut, where I live, is the most recent state to join the National Popular Vote Interstate Compact. The Nutmeg State was wrong to join this Compact, designed to ensure that the presidential candidate who wins the national popular vote also wins in the Electoral College.
How Wayfair opens the door to taxing internet sales
In a much anticipated decision, the US Supreme Court in South Dakota v. Wayfair, Inc. declared, by the narrowest of margins, that a state may require an internet seller to collect sales and use taxes even if the seller lacks physical presence in the state seeking to impose the obligation to collect its tax. Wayfair is an important decision, though much of the popular reporting about it has been overstated.
Taxing donor-advised funds
Congress should extend two taxes to donor-advised funds which currently apply to private foundations. First, Congress should apply to donor-advised funds the federal tax on private foundations’ net investment incomes. Second, Congress should extend to donor-advised funds the federal penalty tax imposed upon a private foundation if it fails to pay out annually an amount of at least equal to five percent of its assets.
Section 4968 and broad-based endowment taxation
Congress added Section 4968 to the Internal Revenue Code in the comprehensive tax legislation adopted in December. Section 4968 imposes a tax on the investment incomes of some college and university endowments. Critics of Section 4968 disparage this new tax as selectively targeting what are widely perceived as wealthy, politically liberal institutions such as Harvard, Yale, Princeton, M.I.T., and Stanford.
The Church of the Holy Sepulchre and Jerusalem’s property tax
hen is a property tax dispute between a church and a municipality an international controversy? When the church is the Church of the Holy Sepulchre and the municipality is the city of Jerusalem. The Church of the Holy Sepulchre is one of the holiest sites in Christianity. The Church takes its name from what is traditionally believed to be the tomb of Jesus located within the Church.
The political process case to overturn Quill v. South Dakota
By deciding to review Wayfair v. South Dakota, the US Supreme Court has thrust itself into the long and contentious debate about the proper tax treatment of internet sales. As I argue, the Court should use this opportunity to overturn Quill v. North Dakota.
Saving Butch Cassidy’s charitable legacy
Paul Newman died in 2008, leaving behind a wonderful legacy of films and philanthropy. Of his many iconic movie roles, my favorite is Butch Cassidy. Unfortunately, Mr. Newman’s death in real life triggered a tax problem which now threatens his charitable bounty. Congress almost solved this problem in the new tax law passed in December 2017 but, at the last minute, failed to do so.
Taxation and religion in 2018
2018 will be an interesting year for those concerned about the intersection of taxation and religion. Two important issues – the constitutionality of the parsonage allowance and the future of the Johnson Amendment – are primed for further controversy in the year ahead. Several months ago, Judge Crabb agreed with the FFRF that Section 107(2) is unconstitutional.
What the House-Senate Conference Committee should do about the Johnson Amendment
The Johnson Amendment is the part of Internal Revenue Code Section 501(c)(3) which bans tax-exempt institutions from participating in political campaigns. The US House of Representatives has passed H.R.1, the Tax Cuts and Jobs Act, to revise the Code. Section 5201 of H.R. 1 would modify the Johnson Amendment. H.R. 1 gets three things right and wrong about the Johnson Amendment.
The constitutionality of the parsonage allowance
Under Internal Revenue Code Section 107(2), “ministers of the gospel” can exclude from the federal income tax cash payments from their congregations and other religious employers for such ministers’ housing. The IRS and the courts have held that this income tax exclusion applies to clergy of all religions including rabbis, cantors, and imams. Income tax-free housing payments to clergy are commonly denoted as “parsonage allowances.”
The House Appropriations Committee and the Johnson Amendment
he Committee on Appropriations of the US House of Representatives, in a so-called rider to the pending federal budget bill, has proposed significant procedural restrictions on the IRS’s ability to enforce the Johnson Amendment. The Johnson Amendment is the provision of the Internal Revenue Code which prevents all tax-exempt institutions (including churches) from participating in political campaigns.