Taxidea Research Articles

Lost in Translation: Excess Returns and the Search for Substantial Activities

Since 2010, international tax policymakers have proposed a variety of minimum taxes on excess returns, but every proposal has defined excess returns differently. This Article asks what excess returns are supposed to represent – and concludes that the answer is very different from what policymakers have suggested. The trend of targeting so-called excess returns started in 2010 with a one-page idea in the Obama Treasury’s proposed budget. Over the next decade, this idea became the basis for one of the major international tax reform provisions in the 2017 U.S. tax reform and is now being considered as part of Pillar Two of the OECD’s current digital tax project. The idea in question is a minimum tax on foreign excess returns. Yet even though the general idea of a minimum tax on foreign excess returns has stayed the same across administrations and jurisdictions, the specifics of this idea have changed with every iteration, and the proponents of this idea have justified each version differently and defined its various elements differently. This Article tells the story of the many recent proposals for minimum taxes on foreign excess returns, starting with the Obama Treasury’s brief proposal and ending with the OECD’s current negotiations over digital taxation. This Article highlights the common threads that link all of these rules, and it also shows how differently the drafters of each rule have understood the purpose and design of a minimum tax on foreign excess returns. This Article argues that, despite claims by the policymakers advocating for these minimum taxes, none of these taxes on excess returns is supported by the economic theory of excess returns. Instead, policymakers are using the term “excess returns” to mean different things in the context of different proposals, and they are masking the policy choices they are making by using a term that appears to have support in the economic literature.

Capital, an Elusive Tax Object and Impediment to Sustainable Taxation

Sustainable taxation requires stability and predictability. Sustainable taxation is a tax or taxes that collect sufficient revenue to support the governmental goods and services the society needs and wants. The taxes must provide for: 1) even-handedness—something akin to horizontal equity; 2) distributional fairness—aconcept emerging from notions of vertical equity; 3) transparency in application so that the populace understands and accepts the tax and the need for it; and 4) collection mechanisms that do not favor some societal groups, especially those with resources to secure creative tax advisors, over others who lack the resources. Narrow base taxes—fuel, alcohol, tobacco—cannot meet these criteria and the broad base taxes currently applicable—value added, payroll, and income—alsofail to meet one or more of the criteria. While specialized taxes like environmental taxes and sin taxes—alcohol, tobacco—serve useful regulatory functions and may achieve their behavioral objectives in part, they do so primarily by increasing the cost of engaging in the undesirable behavior and pricing some actors out of the activity. Using a pricing rather than a direct regulatory mechanism, the specialized taxes change the conversation from social rejection of the behavior to acceptance as long as the actor is willing and able to pay the high price. Is it all right to pollute if one pays to do so? Direct regulation might prove less regressive and less likely to be viewed as simply a matter of price and more as a matter of societal mainstream and commitment to addressing a problem.
 To secure sustainable taxation this Article recommends a non-preferential income tax on a comprehensive income tax base. While by no means a new idea, the growing resource disparity between affluent individuals and individuals with limited resources renders the idea of a non-preferential income tax on all income including realized and unrealized gains all the more compelling. This Article outlines a method for transition to the recommended tax base from the current realization-based tax base and suggests that in limited cases a taxpayer might defer payment of tax on some items of income but not defer inclusion of the items in the tax base. As it describes its tax plan, this Article reflects on the objectives and shortcomings of the targeted taxes and purposive tax base modifications that have proliferated during the 20th century. This Article concludes that a non-comprehensive tax base may accomplish narrow objectives successfully but is unlikely to become functionally sustainable to support essential governmental goods and services. Neither are targeted taxes and purposive tax base modifications fully justifiable. They are likely to distribute tax burdens unevenly among taxpayers without any compelling reason for preferring some taxpayers to others. The narrowness of the base of such taxes frequently leads to regressive tax incidence.

Understanding the political challenges of introducing a carbon tax in Indonesia

Indonesia is the 6th largest carbon emitter in the world. It is also one of the most vulnerable countries to climate change, with a population of 250 million people spread across thousands of islands and low-lying coastal areas. This paper investigates the political challenges to introduce a carbon tax as a climate policy option in Indonesia. It is based on the analysis of 29 in-depth elite interviews with key Indonesian stakeholders. It finds that, while political elites seem, in principle, to be open to the idea of a carbon tax, they are also cognisant of the impact of corruption challenges in the Indonesia context. Meanwhile, the business community opposes a carbon tax and fears the introduction of additional costs that may influence productivity and competitiveness. Non-government organisations, however, support its immediate introduction. Overall, this work makes an important contribution to the ever-growing academic debate on the introduction of carbon prices to assist carbon mitigation efforts. It also has important ramifications in terms of transparency, accountability and political pluralism in Indonesia.

Observations of American Badgers, Taxidea taxus (Schreber, 1777) (Mammalia, Carnivora), in a restored tallgrass prairie in Illinois, USA, with a new county record of successful reproduction

American Badgers, Taxidea taxus (Schreber, 1777) are poorly studied relative to other North American carnivores. We report on observations of American Badgers within a restored tallgrass prairie ecosystem owned and managed by The Nature Conservancy in Illinois. We documented badgers at six camera locations, including two prairie restorations restored from row crop agriculture in 2002 and 2015. In addition, we confirmed breeding activity in Ogle County, filling a gap in the known breeding distribution of American Badgers in Illinois. We provide context for these observations and suggestions for future research.

Relentless Predation on Gunnison's Prairie Dogs (Cynomys Gunnisoni) by a Single American Badger (Taxidea Taxus)

Predation affects the demography and population dynamics of prey species. Because predators commonly stalk prey from concealed routes, attack quickly, and frequently avoid areas with human observers, documenting predation under natural conditions is often difficult. An adult female American badger (Taxidea taxus) with offspring moved into a colony of Gunnison's prairie dogs (Cynomys gunnisoni) living under natural conditions at Valles Caldera National Preserve in New Mexico, United States, and provided an excellent opportunity to record predations over a period of 33 consecutive days in June–July 2018. Badgers are commonly nocturnal, but the badger at our study area captured a total of 100 Gunnison's prairie dogs during daylight hours. Sixty-two of the victims were adults (≥1 year old), 32 were juveniles (≤3 months since birth), and 6 were of unknown age. Most predations occurred in mid-morning and early afternoon. Our results, which do not account for nighttime predations and therefore underestimate numbers of successful attacks, suggest that a single predatory individual can have a sudden, devastating effect on a prey species.

Spatiotemporal analyses suggest the role of glacial history and the ice-free corridor in shaping American badger population genetic variation.

Recurring glacial cycles through the Quaternary period drastically altered the size and distribution of natural populations of North American flora and fauna. The “southerly refugia model” has been the longstanding framework for testing the effects of glaciation on contemporary genetic patterns; however, insights from ancient DNA have contributed to the reconstruction of more complex histories for some species. The American badger, Taxidea taxus, provides an interesting species for exploring the genetic legacy of glacial history, having been hypothesized to have postglacially emerged from a single, southerly refugium to recolonize northern latitudes. However, previous studies have lacked genetic sampling from areas where distinct glacial refugia have been hypothesized, including the Pacific Northwest and American Far North (Yukon, Alaska). In order to further investigate the phylogeographic history of American badgers, we collected mitochondrial DNA sequence data from ancient subfossil material collected within the historical range (Alaska, Yukon) and combined them with new and previously published data from across the species' contemporary distribution (n = 1,207). We reconstructed a mostly unresolved phylogenetic tree and star‐like haplotype network indicative of emergence from a largely panmictic glacial refugium and recent population expansion, the latter further punctuated by significantly negative Tajima's D and Fu's Fs values. Although directionality of migration cannot be unequivocally inferred, the moderate to high levels of genetic variation exhibited by American badgers, alongside the low frequency of haplotypes with indels in the Midwest, suggest a potential recolonization into central North America after the hypothesized ice‐free corridor reopened ~13,000 years ago. Overall, the expanded reconstruction of phylogeographic history of American badgers offers a broader understanding of contemporary range‐wide patterns and identifies unique genetic units that can likely be used to inform conservation of at‐risk populations at the northern periphery.

Realizing housing justice through comprehensive housing policy reform

ABSTRACT A globally connected, locally centred housing justice movement calls for comprehensive reforms of policies that influence the distribution and affordability of housing. To date, this movement has yet to influence U.S. federal housing policy, which has historically prioritized tax expenditures supporting homeownership over affordable rental housing subsidies for low-income households. This paper takes these appeals to housing justice seriously and asks, ‘What would a conception of housing justice offer to housing policy makers seeking to enact comprehensive housing policy reforms designed to shift the balance of federal housing policy priorities away from homeownership towards the satisfaction of low-income households’ basic housing needs?’ I propose a conception of housing justice grounded in the ideal of civic equality, apply civic equality toward the evaluation of current U.S. federal housing policy, and propose a comprehensive national housing policy reform that is consistent with civic equality. The proposed ‘negative housing tax’ extends the idea of a negative income tax to a tax on housing consumption and capital gains from home sales. The revenues generated from the tax provide funds to support a guaranteed monthly housing allowance that would be distributed to those facing the most severe housing needs.

Is VAT Also a Corporate Tax? Untangling Tax Burdens and Benefits for Companies

The Great Financial Crisis has increased concerns about whether corporations are paying a ‘fair’ amount of tax in different countries. This begs the question of what a ‘fair’ amount of tax is. The question is complicated by the continuing lack of clarity about the economic incidence of corporate income tax. Recently, it has been argued that the location of the sales revenue (turnover) of a corporation is relevant in determining the fair allocation. Of course, in many countries there is already a tax based on sales, value-added tax (VAT), also called goods and services tax (GST). This paper explores an illustration, arising from a series of cases before the European Court of Justice, of how VAT can impose a burden on corporations. The illustration raises issues of principle for VAT, but also offers lessons about how we tax corporations, particularly given proposals such as for digital sales taxes in the EU and the idea of a destination-based cash-flow tax included in legislative proposals in the US in 2016. This article explores the puzzles raised by the illustration and shows how it can throw light not only on the nature of VAT but also on the incidence of corporate income tax.

Development of a massively parallel, genotyping-by-sequencing assay in American badger (Taxidea taxus) highlights the need for careful validation when working with low template DNA

Non-invasive DNA sampling to identify and enumerate species is critical to population monitoring and for developing effective management strategies. However, individual DNA identification is often limited by degraded and low template DNA (LT-DNA) that routinely yields partial profiles prone to technical artifacts, thus limiting their utility/reliability. Massively parallel, genotyping-by-sequencing (GBS) assays present an opportunity to amplify not only a large suite of molecular markers simultaneously, providing higher resolution to identify individuals, but also higher levels of sequence redundancy to enable quality metric evaluations of profiles from LT-DNA. Taxidea taxus jacksoni is an endangered badger subspecies in Canada, with low levels of genetic diversity, complicating individual identifications from closely related DNA sequences. Challenges arise from the small number of hairs collected from snag traps set in badger burrows that rarely provide full profiles. We designed a GBS assay to obtain microsatellite profiles compatible with pre-existing databases generated with conventional capillary electrophoresis (CE) genotyping. We assessed the assay’s reproducibility via a dilution series to mimic LT-DNA and tested if the assay produced similar CE-generated results. While GBS offers the potential to genotype large numbers of individuals and markers at the same time, we found low concordance between GBS- and CE-based genotypes from DNA templates < 250 pg. We recommend existing wildlife genetic databases focus on tetra-nucleotide microsatellite or SNP markers to reduce or eliminate sequencing artifacts (i.e., stutter) that present challenges for GBS genotypes from degraded and LT-DNA, and the use of sample replicates to form consensus genotypes.

Self‐Dealing Sanctions: Pigouvian Taxes?

I am indebted to law professor Ellen Aprill for introduction (for me, anyway) to the notion of the Pigouvian tax, by means of a paper she recently published concerning the character of the private foundation self‐dealing sanctions. (The paper is to be an article in the Pittsburgh Tax Review.) Not well‐schooled in economic theory, I am part of the group she describes when writing that “many have been exposed to the idea of a Pigouvian tax without knowing the term.”

Optimality of Tax Policy on the Basis of Comparative Analysis of Income Taxation

This paper is to determine the optimality of taxation based on a comparative analysis of income taxation in developed and developing countries. In our opinion, the main idea of income tax should be the optimal distribution of tax literacy on the basis of a direct definition of income of taxpayers or progressive taxation.&#x0D; The theoretical and methodological basis of the research is the main provisions of the market economy, classical and modern tax theories, legislative and regulatory acts of foreign countries. The main part of the empirical material is from 2002 to 2017. In the process of analysis of the actual material, together with the general scientific method of research, is used: Comparative and systemic analysis, analogy, statistical data monitoring and other methods. The comparative and systemic analysis will give us an opportunity to reveal and evaluate the ways of perfection. Analogy and comparative analysis is based on variables and features, such as the of income taxes structure, withdrawal rules, rates, tax base. Statistic concept tries to explain the named phenomena by the way of fundamental analyzing of the statistic data received resulted multiple statistic observation. Previous analyses of tax rates tend to support the hypothesis that Developed countries emphasize the importance of fairness, while developing countries are mainly focused on mobilizing budget revenues and lesser consideration of fair taxation principles, since the tax system performs a fiscal function more effectively than developing countries. &#x0D; Keywords: Tax policy, income tax, tax burden, budget, well-being

Winter activity patterns of the North American badger (Taxidea taxus) at its northwestern periphery

Abstract The North American badger (Taxidea taxus) is a nonhibernating carnivore that occurs in areas with highly seasonal climates, such as in Canada where the animal reaches its northern limits. There, winter climate is harsh and conventional habitat is limited and patchy, possibly leading to additional energetic constraints. Using radiotelemetry and remote cameras, we documented winter activities of 16 badgers (12 females, 4 males) between 2007 and 2011 in British Columbia, at the northwestern periphery of the species’ range. In comparison to their summer ecology, the animals reduced home range sizes by up to 98% and showed fidelity to particular burrows. Burrow fidelity was variable (mean 27 days; range 0–108) and coincided with reduction in body temperatures, suggesting the onset of torpor. Despite lengthy use of the same burrow, badgers emerged frequently and conducted excursions that appeared to represent foraging behavior. Burrow emergence was not related to ambient temperature or snow depth; rather, it was best explained by the amount of days elapsed since the start of winter. Despite these trends, winter activity also was variable among individual badgers. It may be that limited fat reserves and higher energetic costs in northwestern ranges require winter foraging activities.

Space Use and Habitat Selection of American Badgers (Taxidea Taxus) in Southwestern Wisconsin

Badger (Taxidea taxus) life history and ecology are poorly described despite widespread distribution in North America. We used radio-telemetry to estimate home range size and quantify habitat selection for badgers living in agricultural habitat in southwestern Wisconsin, U.S.A. Badgers in Wisconsin established relatively large home ranges (3 to 30km2), with those of males tending to be larger than females. Badgers selected broadly for nonforested grassland habitat in a matrix of agriculture, although fine-scale use varied substantially by individual. These patterns suggest that badgers tolerate levels of human alteration associated with agriculture in Wisconsin, although there may be limits to that tolerance.

Over the Top: Why an Annual Wealth Tax for Canada is Unnecessary

The idea of a wealth tax has taken on new prominence since French economist Thomas Piketty famously proposed a global wealth tax in 2013; Senator Elizabeth Warren has even made a national wealth tax a plank in her campaign to become the Democratic presidential candidate in 2020. The current interest in wealth taxation is a response to the increase in wealth concentration and income inequality that has occurred in most OECD countries. It has been well documented that both income and wealth inequality have risen significantly in recent decades. In this Commentary, we critically evaluate the case for an annual wealth tax as part of Canada’s tax system. To do so, we review current received wisdom on the elements of a good tax system, drawing on the normative tax design literature and best practices. We do not address the issue of how responsive tax policy needs to be to deal with the evolving inequality of income and wealth. Our focus, instead, is on the mix of policy instruments that are most effective for whatever degree of responsiveness policymakers choose. Our argument is that wealth taxes add relatively little to the taxes on capital and capital income that are already in place, and that concerns about the social consequences of wealth concentration are better addressed by reform of existing capital income taxes and by considering wealth transfer (inheritance) taxation. Our argument against wealth taxation is over and above the substantial administrative challenges in measurement, collection and coverage for annual wealth taxes. These alone are enough to raise red flags about wealth taxation. For our part, we rely on the more fundamental argument that annual net wealth taxes are unnecessary since their objectives can be better achieved by suitably designed taxes on capital income and wealth transfers.

Discriminating different-purpose burrows of the North American badger Taxidea taxus

For many species, burrowing is used for a variety of purposes, such as finding food, sheltering from elements and predators, or raising offspring. For threatened species, differentiating among burrow types allows effective conservation efforts, and provides insight into habitat attributes needed at different stages in their life-history. This study investigated whether burrow characteristics for the North American badger Taxidea taxus allowed discrimination among summer, winter and natal burrows, and whether these characteristics reflected different requirements by the animals. Radio-telemetry was used to monitor badgers and classify burrows based on seasonal occupancy. Characteristics relating to thermal and security cover, along with features that could correlate with prolonged usage, were measured across winter, natal and summer burrows. Winter and natal burrows showed greater vegetation cover than summer burrows, potentially indicating increased thermal protection and predator avoidance. However, for winter burrows, greater vegetation cover did not translate into warmer, winter subterranean temperatures compared to summer burrows. Winter and natal burrows also had larger soil fans and, in the case of natal burrows, also had more entrances than summer burrows. These features may be indicative of prolonged usage. All told, it appeared summer burrows were distinguishable from winter and natal burrows based on the dimensions and construction of the burrow, location and surrounding vegetation. However, because badgers are capable of modifying their environment (including existing burrows) it is difficult to make precise predictions of where certain burrow types will occur. Still, the results of this study allow protection efforts or other management considerations to be apportioned more effectively among different burrow types. Comparable work is needed in other regions to understand how burrow characteristics spatially vary in importance.

Fine-scale genetic structure and conservation status of American badgers at their northwestern range periphery

Peripheral populations are often characterized by small population size and low genetic diversity, with many at risk of extirpation. These characteristics may be even more pronounced in human-modified landscapes that further reduce the resiliency of populations to environmental change. Situated at the northwestern edge of the species’ range, the western American badger (Taxidea taxus jeffersonii) is an endangered mammal in Canada, where it inhabits the interior grassland and open forest ecosystems of British Columbia (BC) and continues to be threatened by severe vehicle-induced mortality rates and other anthropogenic factors. Here, we collected mitochondrial DNA haplotypic and microsatellite genotypic data to investigate the extent and distribution of American badger genetic variation within and among sites in British Columbia, and relative to adjacent populations in the USA, including in Washington state. From these data, we reconstructed population structure and connectivity, and examined current designatable unit status. Patterns of genetic variation for American badgers in British Columbia were as expected for peripheral populations, including reduced genetic diversity, increased population differentiation, and evidence of demographic contraction. Furthermore, we found limited connectivity between regional populations in our study area and identified significant substructure isolating the most northwestern sampling unit (Cariboo), findings that starkly contrast with the high levels of gene flow observed between populations across the species’ range core. These results have important implications for current designatable unit status for western American badgers in British Columbia and emphasize the need for further population monitoring and mitigation of potential barriers to gene flow.

Commonality in Pelvic Anatomy among Three Fossorial, Scratch-Digging, Mammalian Species

This study tests whether three species of fossorial, scratch-digging mammals – Dasypus novemcinctus, Ictidomys tridecemlineatus, and Taxidea taxus – show commonality in pelvic anatomies inferred to be adaptive for this behavior and, correspondingly, divergence in these anatomies from nonfossorial species. The fossorial and nonfossorial species are in the same superorder or family; the comparative sets of species are D. novemcinctus with Bradypus variegatus and Choloepus hoffmanni, I. tridecemlineatus with Sciurus carolinensis, and Ta. taxus with Gulo gulo, Martes americana, and Neovison vison. Fossorial species are hypothesized to show higher prevalence of fusion of sacroiliac and sacroischial (if present) joints, reduction in size or loss of pelvic symphysis, greater number of sacral vertebrae, greater number of vertebrae in articulation with ilium and ischium, and longer ischium. Only males were used in the study; total sample size was 318 adults and 135 subadults. Results show commonality among fossorial species in greater number of sacral vertebrae and rigidity of the pelvis. One inconsistency with expectations is that the pelvic symphysis in fossorial species is as sturdy as in nonfossorial species, based on prevalence of symphyseal fusion and relative length and breadth of pelvic symphysis. Greater number of sacral vertebrae may be due to assimilation of a lumbar vertebra(−e) with the sacrum in fossorial species associated with their slow running speed. A rigid pelvis, due to fusion of pelvic joints and relatively longer or broader pelvic symphysis, effectively transfers forces between vertebral column and hind limb.

The importance of individual variation in the alarm calls of Gunnison's prairie dogs

Gunnison's prairie dogs, Cynomys gunnisoni, frequently utter a repetitive series (a ‘bout’) of alarm calls (called ‘barks’) in response to a variety of terrestrial predators. Previous work has suggested that the structure of barks is finely tuned in ways that provide highly specific information about the identity of the predator. We re-evaluated these findings by presenting individually marked adult females with taxidermy mounts of three terrestrial predators of prairie dogs: a coyote, Canis latrans, a bobcat, Lynx rufus, and an American badger, Taxidea taxus, as well as one control stimulus (a cardboard box). Significant variation among individuals was evident from analyses of 10 measures associated with the general pattern of barking (e.g. latency to begin barking, bout duration, average number of barks/bout, overall bark rate, interbout interval) and also from eight structural features of individual barks (e.g. frequency and duration measures of the fundamental frequency band). When controlling for the identity of alarm callers, we found little evidence for differences in these same variables in response to different stimuli. We conclude that, like several other species of ground-dwelling squirrels, Gunnison's prairie dogs have an individually distinctive alarm call that does not differ for different predators. Our results conflict with earlier claims of extreme specificity in the alarm calls of Gunnison's prairie dogs.

Use of visual stimuli increases count estimates for prairie dogs

ABSTRACTThroughout North America, all 5 species of prairie dogs (Cynomys spp.) have experienced drastic population declines over the past century, which has subsequently affected a host of affiliated species. Tools and techniques used to monitor prairie dogs have important implications for the management and conservation of grassland ecosystems. Behavioral responses by prairie dogs to predators may offer an opportunity to improve techniques that rely on visually based survey techniques by increasing the visibility of individuals. We evaluated whether the use of a visual stimulus resembling a common predator could increase the number of white‐tailed prairie dogs (C. leucurus) observed during visual count surveys conducted in June and July of 2017 in Wyoming, USA. We designed a visual stimulus consisting of a remote‐controlled toy car fitted with a badger (Taxidea taxus) pelt. We found counts of prairie dogs increased from 14.2 (95% CI = 10.4–18.0) to 32.6 (95% CI = 24.1–41.1) individuals/4‐ha plot when this visual stimulus was deployed. Our top model predicted counts to be 2.3 times greater when a visual stimulus was used. The increase in counts elicited by use of a visual stimulus may therefore improve the accuracy and efficiency of traditional visual counts and other visually based monitoring techniques for prairie dogs. By enabling managers to take advantage of behavioral responses, use of a visual stimulus as described here could aid efforts to monitor and manage prairie dog populations and consequently conserve prairie ecosystems. © 2019 The Wildlife Society.

Jeszcze o koszcie jako wydatku związanym z przychodami. Racjonalność działania podatnika jako przesłanka rozpoznania kosztu podatkowego

W artykule rozważano, czy racjonalność ekonomiczna wydatku, rozumiana jako uzasadnione oczekiwanie podatnika, że jego poniesienie doprowadzi do osiągnięcia przychodu w kwocie przekraczającej wartość wydatku, stanowi na gruncie podatków dochodowych przesłankę rozpoznania kosztu podatkowego przez podatnika. Autor, posługując się przykładami, wykazuje, że przyjęcie takiego wymogu naruszałoby istotę podatku dochodowego jako obciążenia należnego od faktycznego przyrostu majątku podatnika. Opowiadając się za szerokim sposobem rozumienia związku wydatku z przychodami, wskazuje, że bez znaczenia dla możliwości rozpoznania kosztu pozostaje również ocena prawdopodobieństwa, z jakim jego poniesienie będzie się wiązało z osiągnięciem w przyszłości przychodu. W efekcie stawia tezę, że na podstawie ogólnej definicji kosztu podatkowego organy podatkowe nie mają prawa weryfikacji wydatku z punktu widzenia jego racjonalności oraz adekwatności.