- L.A. County assessor, though in jail, will keep drawing $197K salary plus raise [LAT]
- IRS lowers the regulatory boom on tax preparers [Institute for Justice video, auto-plays]
- On Wal-Mart Mexico bribery, NYT has a bit of a blind eye of its own [Stoll; earlier here, here, etc.]
- Another painful CPSIA regulation: CPSC on testing “representative samples” [Nancy Nord]
- “Popcorn lung” couple “won a $20 million judgment. Now, they’re broke.” [ABC]
- From Todd Zywicki: Libertarianism, Law and Economics, and the Common Law [SSRN via Bainbridge]
- If the courts disapprove of throttling internet speeds, what do they think of throttling class action claims redemption rates? [Ted Frank]
Posts Tagged ‘taxes’
Chicago law firm benefits from tax whistleblowing
According to the retailers group [Illinois Retail Merchants Association], Mr. [Stephen] Diamond’s Chicago law firm, Schad Diamond & Shedden P.C., has filed no fewer than 238 lawsuits in recent years against retailers small and large, which in its view failed to collect said shipping-and-handling sales taxes. Since the suits have been filed under a “whistle-blower” section of law, the firm is entitled to as much as 30 percent of any recovered taxes as well as attorneys’ fees for its trouble. And because it’s often easier and cheaper for defendants to settle rather than continue to fight, Schad Diamond reportedly has pocketed millions of dollars.
The office of Illinois Attorney General Lisa Madigan says the whistleblower provisions were intended for use by insiders disclosing misconduct rather than by outsiders, while “Illinois Revenue Director Brian Hamer says [the wave of suits] ‘has given Illinois a black eye’ and victimizes those who have made only an ‘inadvertent’ mistake.” [Greg Hinz, Crain’s Chicago Business]
Federal fat tax?
Taking advantage of the media bubble arising from the announced shutdown of Hostess snack-cake operations, Rep. Dennis Kucinich (D-Ohio) is back with a bill proposing to deny the deduction as ordinary business expenses of money spent advertising kids’ snacks. Kay Bell and Kelly Phillips Erb apply deserved ridicule (via Paul Caron/TaxProf).
Plus: Baylen Linnekin on Denmark’s planned repeal of a pioneering fat tax (earlier) and the rejection by voters in two California cities of soda taxes.
Update: New York high court rules 4-3 that lap dances are not “art”
Paul Caron, TaxProf, on one of the more closely watched tax rulings. Earlier here.
Prosecution and police roundup
- Forfeiture: “Defend the Right to Carry Cash and Travel Unmolested” [Eapen Thampy, Agitator]
- Recent Japanese racketeering law, unlike our RICO, actually focuses on organized crime [Adelstein]
- Sheriff’s flack to Fiona Apple: shut up and sing [Ken at Popehat]
- Jimenez case: 99-year sentence, “substantial likelihood defendant was not guilty of this offense” [Jacob Sullum]
- Conrad Black continues to speak out on barbarities of “prosecutocracy” [NY Sun]
- “Are whistle-blowers the new IRS business model?” [Victor Fleischer, NYT DealBook]
- “Minnesota Farmer Found ‘Not Guilty’ in Raw Milk Case” [Katherine Mangu-Ward, Reason]
- Utah man shoots neighbor he thinks “telepathically raped” his wife, is ruled mentally fit for trial [CBS]
“Pulpit Freedom Sunday”
At Prawfsblawg, Paul Horwitz, Rick Garnett and others have a discussion of claims (typified here and here) that it’s oppressive not to let churches electioneer with tax-deductible funds. Other views: Religion News Service/HuffPo, Bloomberg editorial, Stephen Colbert via TaxProf (to an IRS-defying pastor: “Other people have to use after-tax money for their political speech, but you guys get to use pre-tax money for political speech.”) Or is the better answer to liberate both secular and religious 501(c)(3)s to express election views, with the possible result of enabling political donors generally to take a tax deduction on money spent to promote their preferred candidates and causes?
Politics roundup
- Visual representation of debate result (courtesy Chris Fountain) “Obama should have spent more time in court” [David Frum] “Can you imagine the rewards points we earned by paying for wars with the national credit card?” [@BCAppelbaum via @TPCarney]
- Correcting the tax side of the debate: factory relocation, oil deductions, corporate jets [Daniel Mitchell, Cato-at-Liberty]
- Race heats up for three Florida justices [Insurance Journal, earlier] Unions campaign for incumbent justices even as court deliberates on pension lawsuit [Sunshine State News]
- Maybe Rep. Todd Akin isn’t the most unscientific member of the House Science Committee after all [TPM]
- Yes, the HHS welfare work waiver is a real issue [WSJ editorial]
- “Whistle-Blower Lawyers Throw Support Behind Obama” [NYT via FedSoc]
- Michael Greve doesn’t hold back, tells us what he really thinks of Mme. Warren [Law and Liberty]
Bradley Birkenfeld’s $104 million bounty
By ratting on his employer and clients, the UBS informant greatly advanced Washington’s project of preventing Americans from squirreling assets out of reach of the U.S. tax and legal systems. So it’s no surprise that few in the federal establishment — even among longtime critics of what they deem excessive executive compensation — begrudge him the whopping payout. Among his defenders, of course, is Iowa Republican Sen. Charles Grassley, patron of the whistleblower program: “Need we add that Mr. Grassley’s longtime aide, who actually drafted the whistleblower law, now represents Mr. Birkenfeld and stands to collect an interesting percentage of the award Mr. Grassley so obligingly applauds? If one were rich, if one had a sense of history, one might well wish to move a part of one’s nest egg out of the way of Mr. Grassley and his ilk.” [Holman Jenkins, WSJ]
Club owners: lap dancing deserves tax status as “art”
Quite a lot of tax money is at stake: New York is seeking more than $400,000 in back taxes and penalties from one establishment alone. But the broad construction of artistic expression that judges understandably apply in censorship cases under the First Amendment need not carry over to a less constitutionally fraught area such as the application of tax categories. “Can we get past the idea that somehow this is the Bolshoi?” asked one judge. [Naomi Schaefer Riley, New York Post, quotes me]
Taxable employment-law settlements
Yes, you do have to submit to tax withholding on that back and front pay award, says the Second Circuit [Daniel Schwartz]