The Origins of the Ownership Society
How the Defined Contribution Paradigm Changed America
Edward A. Zelinsky
From Our Blog
Jeff Bezos, the billionaire founder of Amazon, has asked on Twitter for advice about the use of his fortune for philanthropy. My advice is that Mr. Bezos should pay some tax. Contemporary attention to philanthropy is largely attributable to the admirable work of Warren Buffett and Bill Gates, Jr. The Giving Pledge, Buffett and Gates have commendably encouraged rich individuals in the US and abroad to devote much of their wealth to charity.
Posted on July 3, 2017
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The complex (and often tragic) saga of post-presidential retirements is well-known. Some presidents, such as Herbert Hoover, were independently-wealthy and thus spent their years after the White House in economic security. Other presidents, such as Woodrow Wilson, lived only briefly after their service in the Oval Office. Yet other former presidents experienced great financial difficulties in retirement.
Posted on June 5, 2017
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The physical aftermath of Storm Stella is now over. The tax aftermath of Storm Stella, however, has just begun. How can a winter storm cause taxes? Because New York State, under its so-called 'convenience of the employer' doctrine, subjects nonresidents to state income taxation on the days such nonresidents work at their out-of-state homes for their New York employers.
Posted on May 8, 2017
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In the current, hyper-partisan environment, relatively few individuals publicly supported the confirmations to the US Supreme Court of both Justice Samuel A. Alito, Jr., and Justice Sonia Sotomayor. I know because I am one of these lonely souls. Now, the same considerations which led me to support their confirmations lead me to support the confirmation to the Court of Judge Neil Gorsuch.
Posted on April 3, 2017
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President Trump, reiterating the position he took during the presidential campaign, has reaffirmed his pledge to 'get rid of and totally destroy the Johnson Amendment.'The Johnson Amendment is the portion of Section 501(c)(3) of the Internal Revenue Code which prohibits tax-exempt institutions from participating in political campaigns.
Posted on March 6, 2017
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Congress should repeal the Logan Act. Modern, globalized communications have destroyed any remaining rationale for this outdated law. The Logan Act today potentially criminalizes much routine (and constitutionally-protected) speech of US citizens. During the presidency of John Adams, Dr. George Logan, a private citizen, engaged in freelance diplomacy with the government of revolutionary France.
Posted on February 6, 2017
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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.
Posted on January 9, 2017
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In light of Secretary Clinton's victory in the popular vote, prominent voices call for replacing the Electoral College with a direct, nationwide vote for President. Among the distinguished individuals now urging abolition of the Electoral College are former Attorney General Eric Holder and outgoing Senator Barbara Boxer. Would Secretary Clinton or President-elect Trump have won in 2016 in a direct, nationwide election?
Posted on December 5, 2016
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In the second presidential debate, Donald Trump indicated that Warren Buffett had deducted, for federal income tax purposes, net operating losses in a manner similar to Trump's deduction of his net operating losses. In response, Buffett, an outspoken supporter of Hillary Clinton, released a summary of Buffett's 2015 federal tax return. Buffett's intended message was clear: Trump didn't pay federal income taxes; I did.
Posted on November 7, 2016
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Speaking before the Family Research Council, the Republican nominee for president, Donald Trump, called for a repeal of the 'Johnson Amendment.' The Johnson Amendment is part of Section 501(c)(3) of the Internal Revenue Code, and prohibits tax-exempt organizations such as schools, hospitals, and churches from participating in political campaigns. The Republican Party's 2016 platform echoes Mr. Trump.
Posted on October 3, 2016
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Democratic Party platform for 2016 repudiates a major provision of Obamacare ' but no one has said this out loud. In particular, the Democratic Party has now officially called for abolition of the 'Cadillac tax,' the Obamacare levy designed to control health care costs by taxing expensive employer health plans. Tucked away on page 35 of the Democratic platform is this enigmatic sentence: We will repeal the excise tax on high-cost health insurance and find revenue to offset it because we need to contain the long-term growth of health care costs."
Posted on September 5, 2016
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I first met Elie Wiesel in the summer of 1965. Wiesel's book Night had been translated into English five years earlier. Night was just beginning to be recognized in English-speaking countries. Wiesel was not yet then the impressive speaker he was soon to become. As he addressed the audience that summer about the horrors of the Holocaust, Wiesel was diffident to the point of shyness.
Posted on August 1, 2016
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Justice Ruth Bader Ginsburg has publicly stated that the US Supreme Court does not function well with eight members. I disagree. Under present circumstances, it would be best for the country and the Court to abolish the vacant Supreme Court seat held by Justice Scalia and to proceed permanently with an eight member court.
Posted on July 4, 2016
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On 17th May, a massive fire caused Metro-North Railroad to reduce its commuter train service to and from Grand Central terminal. In light of this service disruption, the Metropolitan Transportation Authority, which operates Metro-North, 'encouraged' commuters 'to consider working from home.'
Posted on June 6, 2016
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Posted on May 2, 2016
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Last Tuesday, the US Supreme Court issued an unusual order in Zubik v. Burwell. In Zubik, religious employers including the Little Sisters of the Poor, East Texas Baptist University and Southern Nazarene University object to the federal regulations governing birth control coverage for their employees. These regulations permit these religious employers to elect against providing such coverage.
Posted on April 4, 2016
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Article III of the Constitution gives the President the right to 'nominate...Judges of the supreme Court.' Article III also gives the Senate the right to grant its 'Advice and Consent' to such nominations'or not. Both President Obama and Senate Republicans are settling into a protracted political struggle over the appointment of Justice Scalia's successor.
Posted on March 7, 2016
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Sometimes it is gratifying to have predicted the future. Sometimes it is not. The recent postponement of the so-called 'Cadillac tax' until 2020 falls into the latter category. I predicted this kind of outcome when the Cadillac tax was first enacted as part of the Affordable Care Act, popularly known as 'Obamacare.' I am unhappy that events have now proven this prediction correct.
Posted on February 1, 2016
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At President Obama's urging, the US Department of Labor (DOL) has proposed a new regulation condoning state-sponsored private sector retirement programs. The proposed DOL regulation extends to such state-run programs principles already applicable to private employers' payroll deduction IRA arrangements. If properly structured, payroll deduction IRA arrangements avoid coverage under the Employee Retirement Income Security Act of 1974 (ERISA) and the employers implementing such arrangements dodge status as ERISA sponsors and fiduciaries.
Posted on January 4, 2016
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The Little Sisters of the Poor, an international congregation of Roman Catholic women, are unlikely litigants in the US Supreme Court. Consistent with their strong adherence to traditional Catholic doctrines, the Little Sisters oppose birth control. They are now in the Supreme Court because of that opposition.
Posted on December 7, 2015
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S.B. 185, recently signed into law by California Governor Edmund G. (Jerry) Brown, Jr., requires California's public employee pension plans to divest their investments in publicly-traded companies that derive half or more of their revenue from 'the mining of thermal coal.'
Posted on November 2, 2015
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Governor Andrew Cuomo says that he no longer wants New York to be 'the tax capital of the nation.' The recent experience of Patrick J. Carr demonstrates the long distance New York must still travel to reach the governor's goal.
Posted on October 5, 2015
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Medicare recently announced that it will pay for end-of-life counseling as a legitimate medical service. This announcement provoked little controversy. Several groups, including the National Right to Life Committee, expressed concern that such counseling could coerce elderly individuals to terminate medical treatment they want. However, Medicare's statement was largely treated as uncontroversial'indeed, almost routine in nature.
Posted on August 3, 2015
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The recent news about charitable contributions in the United States has been encouraging. The Giving Pledge, sponsored by Warren Buffett and Bill Gates, Jr., recently announced that another group of billionaires committed to leave a majority of their wealth to charity. Among these new Giving Pledgers are Judith Faulkner, founder of Epic Systems; Hamdi Ulukaya, founder of Chobani Yogurt; and Brad Keywell, a co-founder of Groupon.
Posted on July 6, 2015
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In a letter addressed to President Obama, 26 members of the United States Senate expressed their support for the private sector retirement savings laws adopted in Illinois and California, and also being considered in other states. In particular, the senators asked that the United States Treasury and Labor Departments resolve three legal issues clouding the prospects of these adopted and proposed state laws.
Posted on June 1, 2015
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The Obamacare 'Cadillac tax' is currently scheduled to go into effect in 2018. However, last week, sixty-six members of the House of Representatives, including both Republicans and Democrats, proposed to repeal the Cadillac tax before it becomes effective. The Cadillac tax will be imposed at a 40% rate on the cost of health care insurance, exceeding statutorily-established thresholds. Unions and many of their Democratic stalwarts, otherwise supportive of Obamacare, oppose the Cadillac tax because generous union-sponsored health care plans will trigger the tax.
Posted on May 4, 2015
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On one level, I admire the public furor now surrounding Indiana's Religious Freedom Restoration Act (RFRA). In an important sense, this discussion reflects the Founder's vision of a republican citizenry robustly debating the meaning of important values like nondiscrimination and religious freedom. On the other hand, this public controversy has, at times, regrettably reflected failure on both sides to respect their fellow citizens and confront the merits of the issue in civil fashion.
Posted on April 6, 2015
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Tomorrow night's appearance before a joint session of Congress by Israeli Prime Minister Benjamin ('Bibi') Netanyahu raises four important questions, including the following: Should Speaker John Boehner have invited the Israeli Prime Minister to speak without first consulting with President Obama?
Posted on March 2, 2015
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In his State of the Union address, President Obama proposed several tax increases aimed at affluent taxpayers. The President did not suggest one such increase which some Republicans might be persuaded to support: limit the estate tax deduction for bequests to private foundations.
Posted on February 2, 2015
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Posted on January 5, 2015
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In Freedom From Religion Foundation, Inc. v. Lew, the US Court of Appeals for the Seventh Circuit recently dismissed a constitutional challenge to the parsonage allowance provisions of the Internal Revenue Code (Code). Under Section 107(2) of the Code, a 'minister of the gospel' need not pay income taxes on the housing allowance received by the minister as part of his or her compensation.
Posted on December 1, 2014
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Posted on November 3, 2014
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As President Obama ponders whom he will nominate as Eric Holder's successor as attorney general, he should consider President Ford's appointment in 1975 of Edward Levi to head the nation's Department of Justice.
Posted on October 6, 2014
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Maryland State Comptroller of the Treasury v. Brian Wynne requires the US Supreme Court to decide whether the US Constitution compels a state to grant an income tax credit to its residents for the out-of-state income taxes such residents pay on out-of-state income.
Posted on September 1, 2014
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By Edward Zelinsky Few recent decisions of the US Supreme Court have engendered as much controversy as Burwell v. Hobby Lobby Stores, Inc. In that case, the Court decided that a closely-held corporation's employer-sponsored medical plan need not provide contraception if the shareholders of such corporation object to contraception on religious grounds.
Posted on August 4, 2014
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By Edward Zelinsky The sad story of Casey Kasem's last illness is now over. Casey Kasem was an American pop culture icon. Among his other roles, Mr. Kasen was the disc jockey host on the legendary radio program, American Top 40. He was also the voice of Shaggy Rogers of Scooby-Doo.
Posted on July 7, 2014
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By Edward Zelinsky Lucio Noto worked for Mobil and ExxonMobil in Virginia and Texas before retiring in 2001. In his retirement, Mr. Noto and his wife Joan maintain homes in Greenwich, Connecticut and in East Hampton, New York. For state income tax purposes, the Notos are residents of both Connecticut where they are domiciled and New York where they spend at least 183 days annually at their second home.
Posted on June 2, 2014
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By Edward Zelinsky As the American public debated the legislation ultimately enacted into law as the American Taxpayer Relief Act of 2012, no person was more influential than the Oracle of Omaha, Warren Buffett. Much attention was given to billionaire Buffett's complaint that his federal income tax bracket was lower than his secretary's tax rate. President Obama invoked 'the Buffett Rule' to bolster the President's successful effort for the Act to raise income tax brackets for high income taxpayers.
Posted on May 5, 2014
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By Edward Zelinsky Telecommuting benefits employers, employees, and society at large. Telecommuting expands work opportunities for the disabled, for those who live far from major metropolitan areas, and for the parents of young children who value the ability to work at home.
Posted on April 7, 2014
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By Edward Zelinsky In a unanimous decision, New York's Court of Appeals, the Empire State's highest court, recently held that John Gaied was not a New York resident for income tax purposes because he had no New York home. Mr. Gaied was domiciled in New Jersey and had a business on Staten Island to which he commuted daily.
Posted on March 3, 2014
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By Edward Zelinsky Confronting an important constitutional question about religion and taxation, the US District Court for the Western District of Wisconsin, in Freedom from Religion Foundation, Inc. v. Lew, held that Section 107(2) of the Internal Revenue Code violates the First Amendment.
Posted on February 3, 2014
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By Edward Zelinsky Judge Clark Waddoups of the US District Court for the District of Utah has declared unconstitutional parts of Utah's statute outlawing polygamy. Utah's statute was challenged in Judge Waddoups' courtroom by the Brown family of the television show Sister Wives. Days later, Judge Robert J. Shelby, also of the US District Court for the District of Utah, declared unconstitutional Utah's Amendment 3 which restricts Utah's definition of marriage to a man and a woman.
Posted on January 6, 2014
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By Edward Zelinsky Hobby Lobby Stores, Inc. and Mardel, Inc. are owned by the Green family. The Greens oppose on religious grounds 'morning after' forms of contraception.
Posted on December 2, 2013
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By Edward Zelinsky President Obama has joined with other critics of contemporary legal education in calling for the reduction of law school to a two year program. The President and these other critics are wrong. Indeed, the remedy they propose for the ills of legal education has it exactly backward.
Posted on November 4, 2013
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By Edward Zelinsky Once again, those of us who depend on Metro North's railroad commuter service found ourselves bereft of adequate transportation to travel to work in Manhattan. Once again, the Metropolitan Transportation Agency (MTA), which runs Metro North, urged us to avoid Manhattan by telecommuting from our homes for the duration of this service disruption.
Posted on October 7, 2013
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By Edward Zelinsky A group of California state senators, including senate president pro Tem Darrell Steinberg, has called for California's public employee pension plans to protest Russia's homophobic laws and policies by ceasing to make Russian investments. While the senators are right to denounce Russia's assault on human rights, they are wrong to call for the divestment of the Golden State's public pension funds.
Posted on September 2, 2013
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By Edward Zelinsky The Multi-State Worker Act (the current version of the Telecommuter Tax Fairness Act) would, if enacted into law, prevent states from taxing non-resident telecommuters (like me) on the days such telecommuters work at their out-of-state homes. Can someone who values the states and their autonomy (also like me) favor the Act?
Posted on August 5, 2013
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By Edward Zelinsky On 6 May 2013, the US Senate by a bi-partisan vote of 69-27 approved the Marketplace Fairness Act of 2013. The Act would require large, out-of-state Internet and mail order sellers to collect sales taxes, just as brick-and mortar stores must collect such taxes.
Posted on July 1, 2013
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By Edward Zelinsky On Friday, 17 May 2013, two Metro-North commuter trains collided near Bridgeport, Connecticut. Through the following Tuesday, the Metro-North accident disrupted normal commuter train service between parts of Connecticut and New York City. To cope, Connecticut Governor Dannel Malloy asked residents of the Nutmeg State to work from their homes until rail service could be restored.
Posted on June 3, 2013
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Many Americans have seen the now-infamous Star Trek video made by the IRS with taxpayer funds. It is painful to watch. Captain Kirk (known in the 21st century as William Shatner) pronounced himself 'appalled at the utter waste of U.S. tax dollars.' The video's dialogue is depressingly sophomoric. The acting talents of the IRS employees are comparable to the acting talents of law professors, that is to say, nonexistent.
Posted on April 1, 2013
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