Joseph M. Dodge's research while affiliated with Florida State University and other places

Publications (24)

Article
This article argues that the classic Haig-Simons formulation of personal income, namely, an individual’s consumption plus net increases in wealth for the taxable year, was not actually embraced by Simons himself, is contrary to fundamental political values, and (unnecessarily) raises intractable problems. Contrary to what adherents to the Haig-Simo...
Article
This paper proposes various moves for simplification of the task of computing the tax base under the individual income tax, with a principal view of making the income tax capable of compliance by “ordinary” individuals without the aid of tax preparation software or outside assistance. Another aim of simplification is to render taxpayers’ perception...
Article
The idea advanced herein, as a thought experiment, is the possibility of expanding (by legislation) – or possibly interpreting (by Treasury regulation) – section 265(a)(1) to disallow deductions deemed to have paid out of tax-exempt (i.e., excluded) income. Although section 265(a)(1) already disallows deductions to obtain tax-exempt income (hereina...
Article
The Haig-Simons concept of income has for roughly fifty years been a gold standard of income tax theory and policy discussion. This article argues that the classic Haig-Simons formulation of personal income, which consists of an individual’s consumption plus net increases in wealth for the taxable year, could not be maintained by Simons himself, is...
Article
The proposal aims to simplify the law pertaining to transfers with retained interests and powers under the estate and gift tax that are potentially within current IRC sections 2036-2038. Under the proposal, transfers with retained current-enjoyment interests would be deemed to be incomplete until the earlier to occur of the termination of the inter...
Article
The taxable estate is the value of assets at the moment of death or other valuation date. Routine estate planning claims discounts of 30 to 60 percent of the value of the property through temporary, self-imposed restrictions or arrangements that will lapse or that heirs can undo. The wealth transferred to heirs is better measured by ignoring the se...
Article
The publicity surrounding a prominent political figure's rent-free use of a portion of a friend's house in Washington, D.C., has raised the issue of whether the rent-free use of tangible property is a gift for federal gift tax purposes. The 1984 case of Dickman v. Commissioner, 465 U.S. 330 (1984), involving an interest-free demand loan of money, i...
Article
This 1995 article, co-authored with Joseph M. Dodge, explores why the decision in Simon v. Commissioner, 103 T.C. 247 (1994), was wrong, effectively allowing premature deduction of a capital expenditure and, thus, consumption taxation (as opposed to income taxation).
Article
Under the U.S. Constitution as amended by the Sixteenth Amendment, any federal tax that is a "direct tax" (which is not an "income tax") must be apportioned among the states in accordance with the respective populations of the various states. The purpose of this Article to solve the riddle of what is a "direct tax" that is subject to the apportionm...
Article
This article proposes replacing the federal estate and gift tax system with an accessions tax. An accessions tax is a tax, at progressive rates, on the aggregate lifetime gratuitous receipts of an individual in excess of a specified exemption. The main thesis of this article is that an accessions tax is not simply a reverse image of the current est...
Article
The principal thesis is that, under the federal income tax, costs of obtaining specific sums of money should be capitalized (as opposed to being treated as expenses), just as costs of obtaining property should be so capitalized. Since this article deals with costs of obtaining or receiving specific 'cash amounts', it propounds what can be referred...
Article
Under the U.S. Constitution as amended by the Sixteenth Amendment, any federal tax that is a "direct tax" (which is not an "income tax") must be apportioned among the states in accordance with the respective populations of the various states. The purpose of this Article to solve the riddle of what is a "direct tax" that is subject to the apportionm...
Article
A recent case, Murphy v. Internal Revenue Service, 460 F.3d 79 (Aug. 22, 2006), has stimulated interest in the constitutionality of federal taxes and provisions thereof. In Murphy, the panel of the Federal Court of Appeals for the District of Columbia held that section 102(a)(2) of the Internal Revenue Code was unconstitutional by failing to exclud...
Article
A recent case, Murphy v. Internal Revenue Service, 460 F.3d 79 (Aug. 22, 2006), has stimulated interest in the constitutionality of federal taxes and provisions thereof. In Murphy, the panel of the Federal Court of Appeals for the District of Columbia held that section 102(a)(2) of the Internal Revenue Code was unconstitutional by failing to exclud...
Article
In this article, Dodge examines the tax treatment of borrowing under the income tax. The current income tax treatment is contrasted with a cash-method treatment, which is inclusion of borrowed funds coupled with the deduction of the principal and (where appropriate) the interest. (An alternative would be exclusion of the borrowing coupled with disa...
Article
This essay considers the benefit, partnership, and ability to pay principles of tax justice with respect to their foundations and how they bear (if at all) on such issues as the role and size of government, the choice of the tax base, and the structure of rates and exemptions. The method of examination is primarily by way of critique of what I call...
Article
Tax basis is one of the most important, yet least studied, aspects of the income tax. This analysis calls attention to its importance and argues that taxpayers have the motivation, opportunity, and means to inflate the tax basis they have in their assets. We discuss the likely effect of basis overstatements in terms of revenue loss and suggest pote...
Article
In this article, Dodge and Soled explain why inflated tax basis reporting is pervasive, estimating that this problem will cost the federal government $250 billion over the next 10 years and that the real figure could easily be much higher. And, unlike corporate tax shelters, this type of tax fraud is available to all taxpayers who engage in propert...
Article
Two distinguished legal academics have recently advanced a revised, and therefore new, or expanded, version of the benefit principle of tax fairness (hereinafter abbreviated EBP). One of them has invoked the EBP to justify an income tax over a consumption tax, and the other to justify double taxation of corporations and shareholders. Among the poin...
Article
Those opposing permanent repeal of the federal estate and generation-skipping taxes have fallen back to the position of advocating a "reformed" version of these taxes featuring a very large per taxpayer exemption somewhere in the $2-10 million range. Alternatives to a reformed estate and gift tax system are a federal inheritance tax, an accessions...
Article
This paper presents the story of Glenshaw Glass Company v. Commissioner, 348 U.S. 426 (1955), the leading case on gross income under the income tax. The paper examines prior doctrine (mainly, the attenuated legacy of Eisner v. Macomber), briefs, newspaper records, contemporaneous commentary, and current recollections of participants to illuminate h...
Article
This article examines the carrryover basis provisions of H.R. 8, the Death Tax Elimination Act of 2001. If the estate tax is repealed, the income taxation of gratuitous transfers needs to be examined. Under current law, the combination of sections 102 (excluding gratuitous receipts) and 1014 (giving stepped-up basis to bequests) causes unrealized g...
Article
In this well-rounded and student-friendly casebook, theory and policy discussions are threaded throughout the text material, which provides the basis for dealing with the problems and questions that now appear at the end of the section or subsection to which they relate. The Third Edition is not merely an update of the Second Edition; it is a compl...
Article
Full-text available
This book deals with the federal income tax as it bears on gratuitous transfers and with the federal wealth transfer taxes. The federal wealth transfer taxes presently consist of a partially unified estate and gift tax and a generation-skipping tax. The federal transfer tax system is separate and apart from the federal income tax. Features of the b...

Citations

... Çünkü çoğunlukla bu tür harcamalar uygulanmadan önce iyi bir şekilde tasarlanmazlar. Ayrıca, uygulamada karşılaşılan vergi harcamalarının büyük bir bölümü kamu gelirlerinin büyük bir kısmını oluşturan gelir vergisi, kurumlar vergisi, katma değer vergisi gibi vergi kanunları kullanılarak yapılmaktadır (Dodge, 2013). Dolayısıyla vergi harcamaları vergi sistemini daha karmaşık bir hale getirmekle birlikte, vergi hasılatının azalmasına ve idari maliyetleri de içeren vergi uyum maliyetlerinin artışına da neden olmaktadır. ...
... It will be very hard, if not impossible, for the IRS to verify such basis allocation across generations. Indeed, Dodge and Soled (2005) argue that abuse is rampant in determining basis for capital assets under present law (which is much simpler). 4. The Centers for Disease Control estimate that 2,443,387 people died in 2002 ( Kochanek et al. 2004). 5. ...
... He argues both theoretically and practically for an accessions tax, positing that a tax on transferees is more consistent than a tax on transferors with a commitment to equity and to limiting large concentrations of wealth. 10 Dodge devotes substantial attention to the definition of an accessions tax base and the mechanical workings of his proposed system. 11 This formidable piece of scholarship is a welcome addition to ongoing tax policy debates. ...
... In particular, the "benefit" principle considers an amount of taxes proportionate to the amount of benefits obtained by the State to be "fair," while the "ability-to-pay" approach is based on the idea that the tax burden should be distributed among taxpayers in proportion to their faculty to bear the burden (e.g. Dodge 2004;Kaufman 1997). In both cases, companies must contribute to the governments' expenditure to allow them to fulfill their responsibilities toward citizens and to carry out their public function. ...