Government Tax Incentives and Fixed Asset Acquisitions: A Comparative Study of Four Industrial Countries
Thomas M. Porcano

Impact of Tax Law Complexity on Professionals
Stewart S. Karlinsky and Bruce S. Koch

An Expert System for Selecting Tax Shelters
Robert H. Michaelsen

Professors Who Teach Outside the United States: Tax Planning and Policy Analysis
Ernest R. Larkins

Enhancing the Tax Learning Experience: Identifying and Using Tax Cases in Introductory Courses
Ken Milani and Kevin M. Misiewicz

The Evolution of the ATA: From Orphans, to Outlaws, to Respectability
D. Larry Crumbley

Government Tax Incentives and Fixed Asset Acquisitions: A Comparative Study of Four Industrial Countries

Thomas M. Porcano

Abstract

The use of tax and nontax government incentives to stimulate business investment in fixed assets is commonplace. Most of these incentives are supply-side measures. This article presents the results of a study designed to determine the efficacy of such provisions. The four industrialized countries examined in this study were selected because of the similarities in their economic objectives and because of the variety of their incentive provisions. The results clearly indicate that none of these different measures and techniques significantly impact decision making involving fixed assets. Implications of the findings also are presented.

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Impact of Tax Law Complexity on Professionals

Stewart S. Karlinsky and Bruce S. Koch

Abstract

This study examined the impact of income tax law complexity-reading complexity and content complexity -on the task performance of professional accountants. The research results have implications for the appropriate presentation style of the tax law as well as the applicability of standard readability tests to professional readers. In a laboratory experiment 98 tax and accounting professionals were randomly assigned to one of four experimental conditions. The experiment tested the subjects' ability to understand and correctly answer client questions involving practical situations. The impact of reading complexity on overall understanding, holding underlying content complexity constant, also was tested. Results indicate that presentation style exacerbated the effect of an already difficult tax law concept. Also, for adult subjects, a newly developed readability index was superior to standard readability tests currently used by federal and state government agencies.

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An Expert System for Selecting Tax Shelters

Robert H. Michaelsen

Abstract

Expert systems are computer programs that use expert knowledge to solve problems. Although such programs have proven useful in a number of important domains of knowledge (e.g.., geology and medicine), they are in their infancy in the field of taxation. This paper presents an expert system that matches a client with an appropriate type of real estate or oil and gas tax shelter. Software development involved extraction of heuristic rules from interaction with tax experts. After the model was created, it was subjected to a blind evaluation by tax specialists. The results indicate that expert systems are feasible for tax shelters and provide evidence concerning the appropriate domain size for such programs in taxation.

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Professors Who Teach Outside the United States: Tax Planning and Policy Analysis

Ernest R. Larkins

Abstract

Although originally intended to increase U.S. exports, the current Section 911 exclusions are available to anyone who can establish the required nexus with a foreign country. Professors who teach outside the United States can qualify and avoid U.S. income tax on their compensation. They also can avoid foreign income taxes through the use of little-publicized tax treaty provisions available to educators. Planning is essential to satisfy the Section 911 eligibility requirements. Similarly, qualifying for the educator exemption found in most U.S. tax treaties is assured only if tax planning precedes and accompanies the foreign teaching assignment. A tax policy analysis of the statutory exclusions is difficult because data are sparse and the support is based on testimonials. Nonetheless, the dramatic lowering of U.S. tax rates and the limited number of educators electing Section 911 suggest a trivial cost for this tax expenditure, notwithstanding its violation of equity and neutrality standards.

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Enhancing the Tax Learning Experience: Identifying and Using Tax Cases in Introductory Courses

Ken Milani and Kevin M. Misiewicz

Abstract

Cases offer students an opportunity to experience how the tax laws work in a variety of actual situations. Moreover, when carefully selected, cases stimulate student interest and facilitate learning in important subject areas. This article presents a framework for evaluating the merit of a particular case for use in the classroom. It also suggests and summarizes several cases for potential use.

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The Evolution of the ATA: From Orphans, to Outlaws, to Respectability

D. Larry Crumbley

Abstract

The American Taxation Association (ATA) was created in 1974 because a number of individuals felt that tax members were having little impact on the American Accounting Association (AAA). ATA was created to coordinate efforts involving issues in tax education, tax research, and tax legislative matters. In only thirteen years, the organization has had a significant impact on the academic and professional activities of tax instructors and on the direction of AAA. Although three of its original objectives are being met, ATA has not had a major impact on the tax legislative process nor any interlinking with other academic disciplines.