Curated by Melanie Cohen and Daniel Xu
When a conversation arises about why Americans have historically disfavored taxing the rich, someone may trot out the notion that people oppose raising taxes on the class they aspire to join. But they simply may have a different understanding of who “the rich” is in “tax the rich.”
When a tax hike policy places actual numbers on the targeted income brackets, raising taxes on billionaires and people who make more than $400,000 a year generally polls well—with 69% approval among registered voters, according to a Bloomberg News/Morning Consult poll released late last month.
But because many Americans see themselves as—or aspire to become—wealthy, they might hesitate to support a vague proposal to tax the wealthy more heavily without more details on what kind of income or net worth qualifies for membership in that group.
A 2023 Charles Schwab survey found nearly half of respondents self-reported themselves as “wealthy” despite an average net worth of $560,000. This would suggest the political pushback against calls for higher taxes on the rich may stem from the public and the political set having different ideas about what constitutes wealth.
For a solid portion of middle-income earners, the sentiment that taxes should be raised on the rich may imply to them that their aspirations or current income places them closer to the targeted group than any policymaker intends—prompting a protective stance not against taxing billionaires, but against costing themselves money now or in the future.
Perhaps the best route to gain bipartisan support for tax policies that ensure everyone pays their fair share is to put actual dollar figures on them. The slogan “tax the rich” is certainly pithy, but it may be less popular than “tax the people who make $400,000 a year and the billionaires.”
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State Insights
Davis Malm’s Philip Olsen discusses an appellate decision in Massachusetts, saying the case may affect taxation of income earned by nonresidents.
Federal Insights
Marcum’s Marc Giampaola and Michael Shoff discuss discuss a plan to fix bank merger accounting complaints, saying the proposal would unify accounting for all acquired financial assets.
Crowell & Moring’s Starling Marshall analyzes a Tax Court ruling on conservation easements, saying practitioners should review challenges to Treasury regulations.
Fordham’s Barbara Porco reviews SEC climate disclosure rules, saying many public companies already sharing info to meet EU standard.
Amy Goldstein of Grayson Allen shares tips for legal job searches, saying it’s important to ask recruiters questions and explore multiple search avenues.
Taft’s Sonya Jindal Tork analyzes the Valley Park Ranch decision, saying the reversal could favor taxpayers seeking environmental tax deductions.
DLA Piper’s Sara Andrews and Claire Donse discuss pro bono programs in Mexico and Ukraine, explaining how international firms are pivotal for global access to justice.
Global Insights
Puente Sur’s Ignacio Gepp assesses Latin American tax scrutiny, saying AI flags risky taxpayer activity but complicates legal recourse.
Steptoe’s Amanda Pedvin Varma and Steve Dixon analyze the IRS’s advance pricing agreement report for 2023, saying that the data doesn’t show a clear change in APA program selectivity.
Columnist Corner
The IRS already has policies in its toolbox to fight crypto tax evasion more effectively, Andrew Leahey writes in his Technically Speaking column. He says the agency should expand its whistleblower program to include more incentives, and also consider taxing electricity use in data centers to target crypto miners.
Such reforms “could serve as a much-needed carrot” to ensure compliance, Leahey says, and are a matter of “recalibrating existing policies to new targets.”
Career Moves
Matthew Wochok has joined BakerHostetler as a partner in the tax practice group in the Washington office.
Angelina Carroccio has joined Dannible & McKee as a staff accountant with the accounting and advisory services department.
Drew Morier has joined McCarthy Tétrault in the tax group.
Amy M. Van Fossen has been promoted to counsel at Brach Eichler, a law firm based in Roseland, N.J.
Mark A. Snider has joined Nelson Mullins Riley & Scarborough as a partner and a member of the mergers and acquisitions team in Cleveland.
Sam Riesenberg has joined Mayer Brown as a partner with the tax practice in London.
Susan Ryba has joined McDermott Will & Emery as a partner in the tax practice group in Chicago.
Andrew M. Nerney has joined Blank Rome as of counsel in the tax, benefits, and private clients practice group in the New York office.
Ryan McLaughlin has joined Mazars as an audit partner in Long Island, N.Y.
Manuel Rajunov has joined Snell & Wilmer as a partner in the Dallas office.
If you’re changing jobs or being promoted, email your submission to TaxMoves@bloombergindustry.com for consideration.
News Roundup
It’s been another busy week in tax news from state capitals to Washington. Here are some stories you might have missed from our Bloomberg Tax news team (login required).
- A stunning US Tax Court reversal invalidating a controversial regulation the IRS has used to quash conservation easement deductions will shift the fight to the arena of property values and could even impact agency rulemaking broadly.
- Procopio, Cory, Hargreaves & Savitch LLP secured a government contract to provide advice to Puerto Rico on the implications of adopting the global minimum tax and is currently negotiating the contract’s details, an official with the US territory confirmed to Bloomberg Tax.
- A Multistate Tax Commission work group presented an alternative model for assigning taxes on the trucking industry, despite one trade group’s recent demand that the tax agency drop the project.
- KPMG partners who lead the firm’s global AI strategy are pursuing a quest to weave generative AI into all aspects of the organization’s work and touch every corner of its global network.
Tax Journals
(Bloomberg Tax login required)
Tax Management International Journal
Treasury must make significant changes to the dual consolidated loss rules to avoid unintended consequences created by the Pillar Two rules, Guy A. Bracuti of KPMG says.
Tax Management Memorandum
The Department of Labor’s updated guidelines for determining a worker’s classification as independent contractor or employee still leave the matter somewhat indeterminate, Jerome M. Schwartzman, Joel Wukelic, and James Lewis of Stout say.
Our Team
We talk about tax a lot. But you would hear much more if you popped into one of our Teams meetings. Here’s a quick look at what some of us are watching, reading, and listening to this week.
Watching
Jessie Kamens (Editor-at-Large): March Madness! For the first time ever, I’m ranked first in my family’s men’s bracket after correctly picking three of the Final Four, including the intrepid NC State Wolfpack. I’m also loving watching Caitlin Clark and the Hawkeyes march toward the national championship.
Reading
Andrew Leahey (Columnist): I’m finally attempting to read Dante’s “Inferno,” a classic that I’ve often referenced without having actually read—shameful. Working my way through Allen Mandelbaum’s translation, I’m finding the book so far to be as bleak and profound as the depths themselves.
Listening
Melanie Cohen (Content Editor): Ever since listening to an episode of Norah Jones’ music podcast featuring her sister Anoushka Shankar, I’ve been listening to a lot of Indian classical music.
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