Hastings 1

Evan Hastings
ENC 1102
Professor Wolcott
2 November 2015
Annotated Bibliography
Tax laws are an ever-changing scenario in the economic structure of the United
States of America. Tax laws change over time for many different reasons. As citizens of
the United States, we have a very important role in the world of tax. Taxes are used to
fund important projects such as infrastructure, health, the military, and other government
funded areas. Whether taxes collected are used in appropriate manners or not is all up to
those that govern us.
Situations arise that usher in need for changes in tax laws. As the United States
continues to develop and age, older laws become less effective and more obsolete. Which
brings the conversation amongst discourse communities in the world of tax accounting.
In such discourse communities, members need to be informed of new changes as their
work revolves all around it.
Pratt, David, and Scott Andrew Bowman. "It's 2013: Now What?" Florida Bar Journal
87.3 (2013): 31-36. Academic Search Premier [EBSCO]. Web. 13 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=487a958c-99d6417c-9e48-e1516f8d84b2%40sessionmgr4001&vid=6&hid=4202>.
David Pratt and Scott Andrew Bowman both shed light on ATRA (American
Relief Act of 2012) with regard to transfer tax, estate planning, and effects
legislation could have on 2013. ATRAs most important provision, as opinionated

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by the authors, is the continuation of tax relief, Unemployment Insurance
Reauthorization, and the Job Creation Act of 2010. For practitioners and clients,
ATRA gave some certainty into transfer tax law unlike ATRAs predecessor,
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). As a
result of the certainty in transfer tax created by ATRA, practitioners would then
have to clean up any leftover transactions from 2012.
Felix, Alison, and Kate Watkins. "The Impact of an Aging U.S. Population on
State Tax Revenues." Economic Review (2013): 5-37. Academic Search Premier
[EBSCO]. Web. 13 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=487a958c-99d6417c-9e48-e1516f8d84b2%40sessionmgr4001&vid=11&hid=4202>.
Alison Felix and Kate Watkins both reported on the impact of aging Americans on
state taxes. The theory is that as Americans age and retire, they are less likely to
spend money and will thus reduce the states sales taxes and individual income
taxes which account for about 80% of total state tax collections. The article has
shown that demographic change alone is expected to lead to declines in per
capita revenue in all but three states that assess a state income tax (13). Hawaii
for example is facing a 3.3 percent decrease to its per capita taxable expenditures
from its aging population. Tax policymakers must take into account the effects an
aging population can have on a states tax revenue.
Reynolds, Lockwood C., and Shawn Rohlin. "Do Location-Based Tax
Incentives Improve Quality Of Life And Quality Of Business

Hastings 3
Environment?" Journal of Regional Science 54.1 (2014): 1-32. Academic Search
Premier [EBSCO]. Web. 13 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=487a958c-99d6417c-9e48-e1516f8d84b2%40sessionmgr4001&vid=19&hid=4202>.
Lockwood C. Reynolds and Shawn Rohlin from Kent State University brought up
an interesting question on the effect of location-based tax incentives effect on
quality of life and business environment. An example that the authors point out is
that local and state governments often lure businesses to areas lacking in
economic growth. These programs often lead to increased property values but
there is a mix in workers wages. The area itself could improve, but the worker
whose job moved to that area may not live better.
Hymson, Edward B. "The Debate Over Replacing the Present Income
Tax With an Alternative Tax Structure." Southern Law Journal 23.2 (2013): 181209. Academic Search Premier [EBSCO]. Web. 13 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=487a958c-99d6417c-9e48-e1516f8d84b2%40sessionmgr4001&vid=27&hid=4202>.
Edward B. Hymson discusses the on going debate over the tax structure of the
United States. It is debated whether or not the United States should replace its
current progressive income tax structure with a consumption tax or with a hybrid
income tax. The Congressional Research Service concluded saying that there is no
evidence that a consumption tax could be superior to the present income tax. A
hybrid income tax however can provide satisfy some aspects of the consumption
tax without having political and transitional dilemmas. The author claims that a

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hybrid income tax would be most beneficial because it does not tax savings or
investments but still continues with the old system.
Benson, Mitchell E., Donna M. Pironti, and Adam M. Poutasse. "Navigating the 2013
Tax Changes Under PPACA and the HCERA." American Journal of Family Law
27.3 (2013): 155-59. Academic Search Premier [EBSCO]. Web. 13 Oct. 2015.
<http://eds.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=37875c13-5cbe4861-851d-0b994a25d471%40sessionmgr112&vid=11&hid=127>.
Benson, Pironti, and Poutasse discuss 2013 tax changes made by the U.S.
Supreme Court for the Patient Protection and Affordable Care Act (PPACA) and
the Health Care and Education Reconciliation Act (HCERA). Changes included
additional Medicare tax on wealthy individuals, Medicare tax on unearned
income, and Medicare tax on real estate income. The authors conclude, Medicare
tax changes need to be considered when calculating any federal tax calculations
for divorce planning, negotiating, support calculations, property division, and
post-divorce planning. These changes would have an impact on wealthy
individuals and could impact their support payments and their net marital estate
value.
Bracha, Anat, and Daniel Cooper. "Asymmetric Responses to Tax-Induced Changes in
Personal Income: The 2013 Payroll Tax Hike versus Anticipated 2012 Tax
Refunds." Research Review 20 (2013): 93-95. Academic Search Premier
[EBSCO]. Web. 13 Oct. 2015.
<http://eds.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=37875c13-5cbe4861-851d-0b994a25d471%40sessionmgr112&vid=17&hid=127>.

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Anat Bracha and Daniel Cooper both report on tax induced changes in personal
income from the 2013 tax spikes against forecasted 2012 tax returns. The authors
conducted research from the Federal Reserve Bank of Boston and made several
conclusions with regard to tax changes. The authors found that individuals are
more likely to reduce spending after a tax spike rather than a tax refund. Financial
complications do not hinder a taxpayers response to tax-induced income changes.
The marginal propensity to consume (MPC) depends on the saving behavior of
the individual. The authors lastly discovered that age and the shift in the marginal
propensity to save (MPS) are the only factors in explaining the MPC gap.
Perkins, Rachelle Holmes. "Salience and Sin: Designing Taxes in the New Sin Era."
Brigham Young University Law Review 2014.1 (2014): 143-84. Academic Search
Premier [EBSCO]. Web. 25 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/detail/detail?sid=efdd408f-c3e5-4457-9535b4c6b48d3c00%40sessionmgr4004&vid=10&hid=4111&bdata=JnNpdGU9ZWh
vc3QtbGl2ZQ%3d%3d#AN=96514840&db=aph>.
In this scholarly article by Rachelle Holmes Perkins, an assistant professor of law
from the George Mason School of Law, we are introduced to the concept of sin
taxes and the role that they have. Sin taxes according to Perkins are taxes on
behaviors that are deemed to be socially undesirable (Perkins 143). Sin taxes are
most known to be imposed on cigarettes and alcohol. Lawmakers have now
increased the scope of sin taxes beyond smoking and drinking to other taboo such
as tanning and strip clubs. This broader sense of sin taxes may not only bring in
more tax revenue but also discourage such activities. A new sin tax known as the

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soda tax is now being imposed in forty of the fifty states with its mission to help
prevent unhealthy consumption choices. As explained in the article, sin taxes have
goals beyond generating revenue; their goals are to influence consumer choices
through taxation.
Reid, Harry. "Impact of Tax Policy on Gasoline Prices." Congressional Digest 91.5
(2012): 130-60. Academic Search Premier [EBSCO]. Web. 25 Oct. 2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=efdd408f-c3e5-44579535-b4c6b48d3c00%40sessionmgr4004&vid=15&hid=4111>.
In this memorandum by Senate Democratic Leader Harry Reid, Reid proposes
that any tax changes in the oil industry would have an impact on domestic
gasoline prices. According to Reid, the price of gasoline is comprised by four
elements; The largest component of the price is crude oil (67 percent), followed
by Federal, State, and local excise and sales taxes on gasoline sales (13 percent)
and distribution and marketing expenses (9 percent) (Reid 130). The price of oil
exceeds the price of costs and thus a small increase in tax would do nothing to
reduce oil output and would lead to increased gas prices. Reid calls for a repeal on
intangible drilling costs and to replace it with a cost amortization method, which
would be more consistent with depreciation and have no impact on U.S. oil
production and gas prices.
Mertens, Karel, and Morten O. Ravn. "The Dynamic Effects of Personal and Corporate
Income Tax Changes in the United States." American Economic Review 103.4
(2013): 1212-247. ABI/INFORM [ProQuest]. Web. 25 Oct. 2015.

Hastings 7
<https://login.ezproxy.net.ucf.edu/login?
url=http://search.proquest.com/docview/1366682815?accountid=10003>.
In this scholarly article by Karel Mertens and Morten O. Ravn from the
Department of Economics, they discuss the effects personal and corporate income
tax changes have on the United States. The authors have found through their
research that cuts in personal income taxes lower tax revenues, however corporate
tax cuts have no effect on tax revenues. Government spending remained at a
constant rate as well as short term nominal interest rates even after tax shocks.
The authors concluded that tax changes do have an important impact on the
domestic economy. It is up to lawmakers to create tax laws that help the economy
and not have consequences down the road.
Kaplan, Richard L., and Dawson J. Price. "Change and Continuity in Fringe
Benefit Taxation: Seeking Sense and Sensibility." New York Law School Law
Review 59.2 (2015): 285-306. Academic Search Premier [EBSCO]. Web. 25 Oct.
2015.
<http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=27&sid=efdd408fc3e5-4457-9535-b4c6b48d3c00%40sessionmgr4004&hid=4111>.
In this scholarly article by Richard L. Kaplan and Dawson J. Price, the authors
discuss the taxation of so called fringe benefits. Fringe Benefits as the authors
call it are benefits given to employees by their employers such as health insurance
or retirement planning services. Fringe benefits are not taxed and that brings up an
issue for discussion of tax reform. Many fringe benefit exclusions apply to social
security and thus reduce tax receipts for it; this becomes an issue for the baby

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boomer generation as they are beginning to collect retirement benefits. The
authors take the side of taxation for fringe benefits, believing it would generate
substantial revenue, increase fairness between taxpayers, and provide greater
economic efficiency (Kaplan 306).