Federal Income Taxation

Aspen Casebook Series

by William A. Klein, Joseph Bankman

Integrating theory and policy in an accessible, yet challenging approach, Federal Income Taxation features a tradition of distinguished authorship, reaching back to the original author Boris Bittker, eminent tax scholar from Yale Law. William A. Klein, who retires as of this edition, has a long-established reputation across academia, business and the federal government, and Bankman, Shaviro and Stark represent the best-known of younger tax scholars. A unique introduction lends insight to both the historical background and economic analysis of federal taxation for individuals. Problems interspersed between Notes and Questions help students comprehend the complexity of the material.

Genres: Law

777 pages, Hardcover

First published January 1, 1987

Reviews

[Meghan]

absolutely thrilling

[Sean Rosenthal · Rating 4 out of 5]

"Can you think of any principled reason why the exclusion of a no-additional-cost-service should extend to the parents of employees in the airline industry (section 132(h)(3)) but not to the parents of those employed in other industries? Although the Internal Revenue Code is a highly technical compendium of rules, it is important to keep in mind that it is, at bottom, a political document . . . But before joining the chorus of critics who decry the extension of special interest favors for the well-connected, ask yourself whether some other provision that you like would have been enacted without the political 'grease' furnished by these 'special rules' Then decide - are you a tax code purist or a political realist? Can you be both?"

It sure didn't take long for my federal income tax textbook to reaffirm my conviction that the income tax is a unethical political tool for buying votes that creates conflicts among people, that it is the central tool in which everyone attempts to live at the expense of everyone else and almost everyone just ends up poorer in the process. I wonder how long it will take before I blurt out in class that I think the income tax should be abolished.

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Criminal prosecutions are no place for the government to try out 'pioneering interpretations of tax law' . . . Before she met Kritzik, Harris starred as a sorceress in an action/adventure film. She would have had to be a real life sorceress to predict her tax obligations under the current state of the law."

-United States v. Harris, 7th Circuit, 1991

Every now and then, Judges are fairly funny.

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In Accardo v. Commissioner, the taxpayer, Athony Accardo, had successfully defended himself in a criminal prosecution for violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) . . . Because of the acquittal he was not in the trade or business of racketeering, so his legal expenses could not be trade or business expenses [deductible under section 162]. Thus, the guilty criminal [co]defendants [who were convicted of racketeering] were treated better by the tax system than innocent defendants."

-Income tax textbook.

The income tax is insane.

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Studying income tax now. From my tax book:

"Our tax system discourages job-taking by the person who is the secondary worker in a marriage. It does this by taxing the secondary worker's earned income at rates determined by piling that income on top of the income of the primary worker . . . The secondary worker also pays Social Security taxes and incurs a variety of work-related expenses. Most secondary workers are women. Thus, the system tends to discourage job-taking by women. It may at the same time impose psychological and other burdens on women by depreciating the value of services performed outside the home as compared with those performed in the home."

Still waiting for the feminist outcry against the tax code which penalizes work and violates principles of "equal pay for equal work" to a inordinately larger degree than the things feminists tend to talk about.

By the time of my exam on Monday, I'm going to be such an expert on all the intricacies of why the income tax should be abolished.

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Looking over some notes, they're very funny to me sometimes, from income tax:

"'As far as the IRS is concerned, once money is stolen, that money belongs to the thief and the thief must pay his or her taxes before turning anything to the victim.' Page 186 bleh"

True story, stealing generates income, so the government's claim on the thief's tax obligations from the theft takes priority over the victim's recovery of damages. Bleh.

[Gil Bradshaw · Rating 5 out of 5]

This book is awesome. I have never taken any tax courses, and this book was a great primer on the implications of taxation. Seriously, it dumbed things down so that I could understand them.

For example, I never realized what a huge benefit tax deferred retirement plans were because you still have to pay all applicable federal tax on the lump amount that you withdraw when you become old.

Perhaps it is my lack of mathematical background skills that never forced me to think about the savings that the percentage invested (compounded annually) with tax deferment would actually save. I knew that I would save some money...but I didn't know how much I would save until I did the practical examples that are in the book.

And the cases were concisely edited.

A+++!

[Kevin · Rating 2 out of 5]

One of the better casebooks I've come across so far. Which I guess is a lot like being the world's tallest midget.

[H · Rating 4 out of 5]

Lots of editing mistakes. Otherwise, a great book. Some of the cases could have used some commentary background, but overall clear and concise.