Posts Tagged ‘fairness’
“He said that there was death and taxes, and taxes was worse, because at least death didn’t happen to you every year”*…
There are lots of questions that surround taxation: how much? on what? for what? Scott Galloway (@profgalloway) explores a couple of others: how efficient? how fair?
* Terry Pratchett
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As we ruminate on returns, we might recall that it was on this date in 1920 that the U.S. Supreme Court decided a case on the constitutionality of the income tax for the second and last time (so far). The Income tax had been authorized by the Sixteenth Amendment in 1913, and created later that year via the Revenue Act of 1913. In 1915 stockholders filed a brief in the U.S. Supreme Court, which arguing that the Sixteenth Amendment covers “many taxes other than on income”; in 1920, the Court affirmed the constitutionality of an income tax. Then came a second suit…
The United States Supreme Court last decided a federal income tax case on constitutional grounds in 1920, a century ago. The case was Eisner v. Macomber , and the issue was whether Congress had the power under the Sixteenth Amendment to include stock dividends in the tax base. The Court answered “no” because “income” in the Sixteenth Amendment meant “the gain derived from capital, from labor, or from both combined.” A stock dividend was not “income” because it did not increase the wealth of the shareholder.
Macomber was never formally overruled, and it is sometimes still cited by academics and practitioners for the proposition that the Constitution requires that income be “realized” to be subject to tax. However, in Glenshaw Glass , the Court held in the context of treble antitrust damages that the Macomber definition of income for constitutional purposes “was not meant to provide a touchstone to all future gross income questions” and that a better definition encompassed all “instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.”
In the century that has passed since Macomber , the Court has never held that a federal income tax statute was unconstitutional. This behavior of the Court constitutes a remarkable example of American tax exceptionalism, because in most other countries income tax laws are subject to constitutional review and are frequently ruled unconstitutional…
Reuven Avi-Yonah, “Should U.S. Tax Law Be Constitutionalized? Centennial Reflections on Eisner v. Macomber (1920)“
“Genuine equality means not treating everyone the same, but attending equally to everyone’s different needs”*…
In 2014, the Pew Research Center asked Americans to rank the “greatest dangers in the world.” A plurality put inequality first, ahead of “religious and ethnic hatred,” nuclear weapons, and environmental degradation. And yet people don’t agree about what, exactly, “equality” means. In the past year, for example, New York City residents have found themselves in a debate over the city’s élite public high schools, such as Stuyvesant and Bronx Science. Some ethnicities are vastly overrepresented at the schools, while others are dramatically underrepresented. What to do? One side argues that the city should guarantee procedural equality: it should insure that all students and families are equally informed about and encouraged to study for the entrance exam. The other side argues for a more direct, representation-based form of equality: it would jettison the exam, adopting a new admissions system designed to produce student bodies reflective of the city’s demography. Both groups pursue worthy egalitarian goals, but each approach runs against the other. Because people and their circumstances differ, there is, Dworkin writes, a trade-off between treating people equally and treating them “as equals.”
The complexities of egalitarianism are especially frustrating because inequalities are so easy to grasp. C.E.O.s, on average, make almost three hundred times what their employees make; billionaire donors shape our politics; automation favors owners over workers; urban economies grow while rural areas stagnate; the best health care goes to the richest. Across the political spectrum, we grieve the loss of what Alexis de Tocqueville called the “general equality of conditions,” which, with the grievous exception of slavery, once shaped American society. It’s not just about money. Tocqueville, writing in 1835, noted that our “ordinary practices of life” were egalitarian, too: we behaved as if there weren’t many differences among us. Today, there are “premiere” lines for popcorn at the movies and five tiers of Uber; we still struggle to address obvious inequalities of all kinds based on race, gender, sexual orientation, and other aspects of identity. Inequality is everywhere, and unignorable. We’ve diagnosed the disease. Why can’t we agree on a cure?…
We all agree that inequality is bad. But what kind of equality is good? A thoughtful consideration: “The Equality Conundrum.”
* one answer, from Terry Eagleton
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As we seek balance, we might recall that it was on this date in 1960 that the Nashville Sit-ins began. Part of a nonviolent direct action campaign to end racial segregation at lunch counters in downtown Nashville, Tennessee, they ran through May 10. The sit-in campaign, coordinated by the Nashville Student Movement and Nashville Christian Leadership Council, was notable for its early success and emphasis on disciplined nonviolence. It was part of a broader sit-in movement that spread across the southern United States in the wake of the Greensboro sit-ins in North Carolina.
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