Abstract
Our graduate income tax structure provides an incentive to shift income to lower-bracket family members. However, some parents have much more latitude to shift income to their children than do others. Income derived from services and private business-by far the majority of American income-is less favored than income derived from publicly traded securities. The rationale given for this discrimination is that parents in services or private business, as opposed to those in securities, do not actually part with control of their property. This article explores these tax broader (yet subtle) tax benefits and their impact on the majority of children seeking a higher education. Proposed solutions to this lack of uniformity are discussed.
Disciplines
Accounting Law | Banking and Finance Law | Business Organizations Law | Economics | Juvenile Law | Law | Law and Economics | Law and Society | Social Welfare Law | Tax Law
Date of this Version
October 2004
Digital USD Citation
Snyder, Lester B., "Does the Tax Law Discriminate Against the Majority of American Children: The Downside of Our Progressive Rate Structure and Unbalanced Incentives for Higher Education?" (2004). University of San Diego Law and Economics Research Paper Series. 4.
https://digital.sandiego.edu/lwps_econ/art4
Included in
Accounting Law Commons, Banking and Finance Law Commons, Business Organizations Law Commons, Economics Commons, Juvenile Law Commons, Law and Economics Commons, Law and Society Commons, Social Welfare Law Commons, Tax Law Commons
Comments
Tax Notes, August 23, 2004, p. 843 The complete version of this article will appear in 41 SAN DIEGO L. Rev. No 3 (2004)