Many people associate the term “sin tax” with a Big Brother government that watches its population of subordinates, determining what behaviors are desirable or undesirable and discouraging the latter.
But what if a tax on something with deleterious health effects could be recast as sound fiscal policy?
A recent study out of Australia, in collaboration with Deakin University and the University of Melbourne, found that a 20% tax on sugary drinks had a 10-year $63.5 million return on investment for Australian society writ large. The savings come in the form of reduced dental decay and a decrease in life years lost to premature death or disability.
Furthermore, the tax provided the least advantaged in the study three times the health benefit it did the most advantaged, meaning the policy improved overall health equity.
Presentation often is the difference between a policy that is met with widespread approval and one that falls victim to political divisions. Tax policy is a powerful tool for advancing equity, but without effective communication, a tax aimed at improving public health becomes a despotic sin tax in a society where you can’t even enjoy a soda anymore.
At Bloomberg Tax, we’re assembling experts at the forefront of their tax niche, as well as effective communicators and editors to make sure great ideas are conveyed most effectively.
The Exchange—It’s where great ideas intersect.
—Andrew Leahey
Look for Leahey’s column on Bloomberg Tax, and follow him on Mastodon at @andrew@esq.social
State Insights
The Center for Freedom and Prosperity’s Daniel J. Mitchell discusses how tax competition and the enactment of the SALT deduction cap have left high-income-tax states in a precarious financial position.
The recent defeat of a piece of controversial legislation doesn’t mean that ending Louisiana’s corporate franchise tax is no longer a priority for lawmakers, say state and local tax experts Jason DeCuir and Mary Robinson.
Philip Olsen of Davis Malm summarizes recent tax developments in Massachusetts, including rules on litigating tax appeals, a case about cellphone purchasers suing the Commissioner of Revenue, and a draft regulation for remote retailers.
Federal Insights
EY’s Dennis Post and Jeff Wong explain how companies that set up decentralized autonomous organizations should ensure they have a legal wrapper to stay compliant from a tax, legal, and regulatory perspective.
Businesses and their financial advisers need to be aware of the complexities of meeting the new requirements for beneficial ownership information reporting, says AICPA’s Melanie Lauridsen.
Programs that bring accounting into high schools, offer credits for internships, expand self-study options, or deploy online courses will help build a pipeline into the profession, says PICPA’s Jennifer Cryder.
Global Insights
Christos Theophilou of Taxand analyzes the complexities involved in debt–equity classification for intra-group financing and the potential tax consequences for multinational taxpayers.
Grant Wardell-Johnson of KPMG describes the role artificial intelligence could play in tax and the need to put in place effective legal and ethical safeguards.
The complexity of the UK’s tax code is a problem for both taxpayers and the government, but the politics surrounding simplification make changing the system a challenge, says Laurence Field of Crowe UK.
Holly Glenn, Jukka Karjalainen, and Moiz Shirazi of Baker McKenzie discuss how multinational enterprises should reevaluate their transfer pricing strategy when adapting their supply chains to shortages of goods and price inflation.
Columnist Corner
US demand for electric vehicles has begun to fall short of supply. In this week’s Technically Speaking, Andrew Leahey writes that making EV tax credits refundable and removing vehicle restrictions would resolve the imbalance and facilitate the country’s shift away from fossil fuels.
Career Moves
Former IRS Commissioner Chuck Rettig has joined the board of directors at K1x, a digital K-1 packet production platform.
Daniel Cousineau has joined Greenberg Glusker LLP as a partner in the corporate, finance, and securities group in Los Angeles.
Thu Lam has joined Chamberlain Hrdlicka as part of the state and local tax controversy and planning group in Philadelphia.
Sarah Myers Raben has joined Dentons as of counsel in the tax practice group and the tax controversy team.
Ingrid McCleave has joined DMH Stallard’s private client team in London.
Eric B. Udowychenko has joined Gibbons P.C. as a director in the corporate group in Newark, N.J.
John G. Hodnette has joined Fox Rothschild’s taxation and wealth planning department as counsel in Charlotte, N.C.
Jeremy Abrams has joined Foley & Lardner as of counsel with the taxation practice group in New York and Washington.
If you are changing jobs or being promoted, let us know. You can 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.
*Note: Your Bloomberg Tax login is required to access Tax News.
- Recent global minimum tax guidance from the OECD will help usher in billions of dollars of financing for clean energy projects in the US.
- The US government urged a Colorado federal court to disregard steps in a business arrangement that Liberty Global Inc. says allowed it to claim a major multinational tax deduction, arguing that the steps lack economic substance.
- New York City’s double-digit growth in sales tax collections is starting to abate, a sign of the city’s uneven economic recovery from the pandemic as restaurants bustle but seats remain unfilled on Broadway.
- The IRS wants to require taxpayers to disclose a type of installment sale of property that the agency says is being used to avoid taxes.
Tax Journals
In a Tax Management International Journal analysis, George Clarke, Sonya Bishop, Joseph Judkins, Ethan Kroll, Vivek Patel, and Varuni Balasubramaniam of Baker McKenzie examine the upcoming decision by the Supreme Court in Moore v. United States on the constitutionality of the transition tax under the Tax Cuts and Jobs Act of 2017.
BDO’s National Technical Practice Leader for state and local taxes, Scott Smith, provides his take on whether states should treat global intangible low-taxed income as a foreign-source dividend for corporate income tax purposes.
US companies operating in Puerto Rico generally can offer their local employees the same health care benefits they offer their US employees but need to consider differences in the tax rules and be aware of tax savings opportunities, says Carlos Gonzalez of BenefitsPuertoRico.com.
*Note: Your Bloomberg Tax login is required to access Tax Journal articles.
Attention Law Students
Do you have an original take on the law—but you’re not a lawyer yet? Our student writing competition is the perfect opportunity to show off your work.
We invite students to choose an area of law and technology and describe how it might be tested in courts, update past practices, or force a rethinking of the legal landscape.
We’ll publish the winning entry in December, and the student with the winning entry will get a swag bag of Bloomberg Industry Group products.
Our Wish List
Back-to-school season is starting. For August, we’d welcome submissions on sales tax holidays and educational credits. We’re also seeking articles that discuss tax considerations of college tuition payments.
If you have an interesting, never-published article for publication, you can contact our Insights team by email at TaxInsights@bloombergindustry.com.
Our Team
We talk about tax a lot. But there’s much more that you might hear us talking about 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
Daniel Xu (Content Editor): “A Beautiful Day in the Neighborhood,” the 2019 film based on a journalist’s interview with Fred Rogers. I thought it was a touching tribute to Mr. Rogers’ legacy.
Reading
Melanie Cohen (Content Editor): “Daisy Darker,” an Agatha Christie-esque murder mystery set in 2004 with far too many aphorisms but a really interesting plot.
Listening
Katharine Butler (Acquisitions Manager): I’ve been listening to some Tony Bennett classics. I saw him perform live twice, and his voice was gorgeous.
Stay Connected
Get our newsletter delivered to your inbox each week by heading over to The Exchange and clicking the green “Free Newsletter Signup” box at the top. Follow Bloomberg Tax on Twitter, Facebook, Instagram, LinkedIn, and Threads—and check out Bloomberg Law on TikTok. We also have a growing LinkedIn group where our authors, contributors, and readers can share tax-related stories and exchange ideas.
Learn more about Bloomberg Tax or Log In to keep reading:
See Breaking News in Context
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools and resources.