Jan Brueckner (UC-Irvine; Google Scholar) offered Taxes and Telework: The Impacts of State Revenue Taxes in a Work-from-Dwelling Financial system (with David R. Agrawal (Kentucky; Google Scholar)) at UCLA this week as a part of its Colloquium on Tax Coverage and Public Finance hosted by Kirk Stark and Jason Oh:

This paper research the interstate results of decentralized taxation and spending when people can make money working from home (WFH). As a result of WFH decouples inhabitants and employment, the evaluation of tax impacts on state populations, employment ranges, wages and housing costs is radically completely different than in the usual mannequin the place people reside and work in the identical state. Which state can tax teleworkers—resulting in both supply or residence taxation—issues for tax impacts below WFH. Our important findings, which pertain to the employment and wage results of WFH, present {that a} shift from a non-WFH economic system to WFH reduces employment and raises the wage in high-tax states, with bigger results below supply taxation. As soon as WHF is established, a rise in a state’s tax price both reduces employment additional whereas elevating the wage (supply taxation) or leaves the labor market unaffected (residence taxation). We present that solely the residence-taxation equilibrium is environment friendly.

Blaine Saito (Northeastern; Google Scholar) offered Public Tax Actors at UCLA final week:

The U.S. federal tax system is failing to advertise values of democracy and egalitarianism. Highly effective pursuits like the rich and multinational entities (MNEs) have bent the tax system to their whim. In the meantime deprived teams and the working class have little voice or enter within the growth of tax coverage, whilst taxation serves as the muse of the state and touches nearly each facet of individuals’s lives. The consequence then is a system that additional entrenches these pursuits.

This text seeks to intervene to revive democratic values to taxation. It advances the thought of democratic equality as a guiding worth for the tax system, because it encompasses lots of the varied ideas students concerned within the intersection of tax and democracy have raised. The concept is that taxation ought to assist in offering folks with entry to capabilities to take part in all points of civil society and that in creating insurance policies everybody ought to be handled with equal regard. Underneath its present construction, the tax system fails.

This failure is especially noticeable within the creating Treasury Rules and steering. Not solely are these pursuits the one ones who remark, however a lot of them have entry to Treasury and the IRS previous to the event of a Discover of Proposed Rulemaking. Many proposals to repair this downside lack regard for democratic values. Moreover, the system is captured each in conventional and nontraditional methods equivalent to data seize, whereby solely sure voices produce reams of knowledge for regulatory choices, and cultural seize, whereby the folks working are extra culturally aligned and work together extra frequently with individuals who characterize already well-off pursuits.

The intervention proposed is to create a grant program to develop tax capability in a broad vary of civil society organizations. Drawing from parallels in state utility price hearings and the superfund, which give related sorts of funds, these grants would go to teams starting from native organizations to massive nationwide organizations. These grants might then assist join new constituencies to the event of Treasury Rules. Moreover, Treasury and the IRS ought to search to interact all grant recipients actively, looking for enter not solely via feedback, however even throughout the growth of regulatory priorities. Such a program might assist advance democratic equality within the tax system in addition to enhance the general outcomes of taxation.

https://taxprof.typepad.com/taxprof_blog/2023/01/jan-brueckner-and-blaine-saito-present-tax-papers-at-ucla.html