Climate change poses an “urgent and existential threat” according to the International Court of Justice. Certain corporate tax practices “undermine the fairness and integrity of tax systems” according to a major OECD/G20 project. A single nation is “undermining the security of the whole of Europe” according to the European Commission Vice President. Taxpayers in a globalized world still face “the evils of double taxation” that League of Nations experts sought to remedy long ago. The U.S. goods trade deficits “constitute an unusual and extraordinary threat to the national security and economy of the United States” according to an executive order. Can tax solve these problems…or at least help? If so, should nations act unilaterally, together, or at all? This seminar explores these questions, cultivating a deeper understanding of timely policy debates and how to navigate a complex landscape facing government and private parties alike.
We will examine the legality and viability of tax as a tool beyond raising revenue, particularly in the international income and environmental tax spaces, by studying historical, recent, and proposed unilateral and intergovernmental tax responses to global challenges and the interaction of such responses with domestic and international law. In doing so, the course considers the successes and shortcomings of bilateral tax treaties, tax information exchange agreements, dispute resolution mechanisms, digital services taxes, tariffs, the “revenge tax,” the Swiss Bank Program, tax sanctions, UN and OECD initiatives, EU taxation and the Apple state aid saga, the EU Emissions Trading System, unilateral and global carbon pricing proposals, exit and expatriation taxes, and more.
No background in tax is required; a basic understanding of relevant underlying tax rules and theories will be provided. Grades will be based on participation and a written component.