Tuesday, June 7, 2022
Bearer-Buddy: Tax With out Money
Jeremy Bearer-Buddy (George Washington; Google Scholar), Tax With out Money, 106 Minn. L. Rev. 953 (2021):
This Article paperwork and evaluates tax obligations paid with out money, known as “in-kind tax paying.” Such types of tax paying embrace paying federal revenue taxes by remitting a used flatbed truck to the IRS, paying native property taxes by working just a few hours a month answering telephones at metropolis corridor, and paying state excise taxes by conveying a proportion of all seashells farmed inside a state to that state. These should not simply hypotheticals, however types of in-kind tax paying that happen in the US all through intervals when many taxes are additionally paid in money. Nonetheless, regardless of its lengthy historical past and prevalence, in-kind tax paying has been underexplored as a viable, and doubtlessly interesting, type of tax remittance.
By offering an authentic taxonomy of in-kind tax paying inside a money economic system, this Article makes three contributions.
First, it improves our definition of tax paying by figuring out the big variety of in-kind remittances that happen in our present tax system.
Second, it refutes the tacit presumption that in-kind remittance of tax obligations will not be viable, thus increasing the tax instruments out there to native, state, and federal governments and demonstrating how slender presumptions about tax remittance have predetermined core tax coverage selections.
Third, it confronts the substantial risks of in-kind tax paying, utilizing these dangers to suggest new ideas for limiting the design and administration of in-kind tax paying.
This Article concludes that in-kind tax paying is a viable type of tax remittance even inside money economies, in-kind tax paying stays broadly in use, and, beneath some circumstances, elective in-kind tax paying could be preferable to money tax exclusivity.
https://taxprof.typepad.com/taxprof_blog/2022/06/bearer-friend-tax-without-cash.html