Volume 93: Issue 3

An Issue in Tribute to a Splendid Career William J. Turnier: UNC Law Colleague, 1973–2014

By John Charles Boger

Click here for PDF*** It is not every senior faculty member whose fondest wish upon retirement is less a dinner hosted in his honor or a public celebration in the Rotunda of Van Hecke-Wettach, but rather an issue of the North Carolina Law Review devoted to tax scholarship. Yet it seems completely fitting that William J. Turnier, a member of the University of North Carolina law faculty for the past… READ MORE

93 N.C. L. Rev. 643 (2015)

The Moving Target of Tax Reform

By Karen C. Burke & Grayson M.P. McCouch

Click here for PDF* Karen C. Burke** & Grayson M.P. McCouch*** In 2000, Professor William Turnier proposed a package of three reforms to make the estate tax more “equitable” and “taxpayer-friendly.” All of his proposals—allowing a surviving spouse to inherit a deceased spouse’s unused exemption, replacing the state death tax credit with a deduction, and indexing the exemption for inflation—were eventually enacted. Today, the estate tax remains on the books,… READ MORE

93 N.C. L. Rev. 649 (2015)

Getting Serious About Cross-Border Earnings Stripping: Establishing an Analytical Framework

By J. Clifton Fleming Jr., Robert J. Peroni, & Stephen E. Shay

Click here for PDF* Clifton Fleming, Jr.,** Robert J. Peroni,*** & Stephen E. Shay**** A multinational enterprise (“MNE”) may use cross-border earnings stripping as a tax planning strategy. This strategy involves a higher-tax affiliate making deductible payments to a low- or zero-tax affiliate to reduce the MNE’s global effective tax rate and, in the process, erode the corporate tax bases of countries where its economic activity otherwise would be more… READ MORE

93 N.C. L. Rev. 673 (2015)

Taxing Compensatory Stock Rights Transferred in Divorce

By Gregg Polsky & Kathleen DeLaney Thomas

Click here for PDF* Gregg Polsky** & Kathleen DeLaney Thomas*** Stock-based compensation has become increasingly prevalent in recent years. As a result, many high net worth divorces now result in the transfer of compensatory stock rights from the employee spouse to the nonemployee spouse as part of the marital settlement. Despite this growing trend, the tax consequences of these transfers have not yet been explored fully. This Article endeavors to… READ MORE

93 N.C. L. Rev. 741 (2015)

For Better and Worse: The Differing Income Tax Treatments of Marriage at Different Income Levels

By Lawrence Zelenak

Click here for PDF*** Although both marriage penalties and marriage bonuses exist at all income levels under the federal income tax, the system is tilted toward penalties for lower-income couples, toward bonuses for middle-income couples, and back toward penalties for upper-income couples. This Article begins by explaining how the tax rules produce these differing treatments of marriage at different points in the income distribution. It then argues that the increase… READ MORE

93 N.C. L. Rev. 783 (2015)

The Death of the Clean Air Act’s PSD Provision?: The Practical Implications of Circuit Courts’ Failure to Properly Apply Chevron Deference

By Heather M. Hillaker

Click here for PDF*   Introduction America’s increasing environmental consciousness in the 1960s and 1970s led regulators to consider ways to further protect and enhance the nation’s air quality.[1] A monumental step occurred when the Clean Air Act of 1970 (“CAA”) was enacted.[2] A comprehensive statute, the Act was designed to “protect and enhance the quality of the Nation’s air resources so as to promote the public health and welfare… READ MORE

93 N.C. L. Rev. 821 (2015)

Into the Future: The Statutory Implications of North Carolina’s Telepsychiatry Program

By Jennifer M. Little

Click here for PDF* Introduction Mr. Smith waits in the emergency department of a rural North Carolina hospital. He is schizophrenic, and the emergency department physicians determined that he is experiencing a psychotic episode. He needs to be seen by a psychiatrist immediately; unfortunately, the rural hospital does not have access to a full-time psychiatrist. So, Mr. Smith will wait¾potentially for hours, or even for days¾until the hospital’s part-time psychiatrist… READ MORE

93 N.C. L. Rev. 863 (2015)

Syntax on Sin Tax: The Supreme Court of North Carolina Invigorates the Just and Equitable Tax Clause

By K. Dawn Milam

Click here for PDF* [E]quity is a law in our hearts; it conforms to no rule, but to circumstances, and decides by the consciousness of right and wrong. —George Crabb[1] Introduction The North Carolina Constitution requires the power of taxation to be “exercised in a just and equitable manner.”[2] For seventy-eight years after the language was adopted by amendment, the Supreme Court of North Carolina made perfunctory references to the… READ MORE

93 N.C. L. Rev. 912 (2015)