Archive for 2015

TAXPROF ROUNDUP: The IRS Scandal, Day 883. Plus, a reader poll on whether he should continue this daily coverage.

HIGHER EDUCATION BUBBLE UPDATE: College Debt Woes Point to Grim Future.

The problems detailed in this article are real and important, but there’s a big one that’s not mentioned: Sooner or later, interest rates will go up generally, and that’s likely to price some colleges out of the bond market completely.

This should remind us that America is locked into an educational model, that, like our health care system, rests on foundations that drive prices up faster than inflation year by year by year. Education is important to Americans, and we do what we can to keep up, but ultimately we need to figure out how to deliver the education we need at a price we can actually pay. Sadly, it remains the case that the people who know the system best are, for the most part, less interested in helping think through and implement creative reform than in perpetuating the privileges that come with their jobs in the current, outdated system.

If only someone had warned them.

MY USA TODAY COLUMN IS ON TAXES AND MIGRATION: Are America’s tax migrants bringing California and New York’s high-tax views to sunny low-tax shores of Texas and Florida? “If I were one of those conservative billionaires (hello, Koch brothers! hi, Sheldon Adelson!) who are always donating tens of millions to support Republican candidates, I think I might try spending some of the money on something more useful: A sort of welcome wagon for blue state migrants to red states. Something that would explain to them why the place they’re moving to is doing better than the place they left, and suggesting that they might not want to vote for the same policies that are driving their old home states into bankruptcy.”

WHY SHOULD THE REST OF US FOLLOW THE LAW, WHEN OBAMA DOESN’T? U.S. officials conclude Iran deal violates federal law. “Some senior U.S. officials involved in the implementation of the Iran nuclear deal have privately concluded that a key sanctions relief provision – a concession to Iran that will open the doors to tens of billions of dollars in U.S.-backed commerce with the Islamic regime – conflicts with existing federal statutes and cannot be implemented without violating those laws.”

REPUBLICAN EMPLOYMENT LAWYERS TAKE NOTICE: With new equal-pay act, will Jennifer Lawrence get paid like Bradley Cooper?

Oscar-winner Jennifer Lawrence was paid 7% of the profit on the 2013 ensemble film “American Hustle,” a big payday for the A-list actress. But Bradley Cooper and two other male co-stars each earned 9%.

That’s the kind of inequity potentially targeted by California’s Fair Pay Act, which is aimed at leveling the compensation field between men and women. The bill, signed by Gov. Jerry Brown this week, applies to businesses statewide but has particular resonance in Hollywood, where women have become increasingly vocal critics of the pay gap.

Indeed, the entertainment industry played a key role in pushing the bill forward. Patricia Arquette raised the issue of pay inequality while accepting the best supporting actress Oscar during this year’s Academy Awards — a moment that the Fair Pay Act’s author, state Sen. Hannah-Beth Jackson (D-Santa Barbara), said gave the measure momentum.

* * * * * *

“This will ultimately force production companies, studios, TV networks, talent agencies and management firms to look more closely at their practices to make sure that they are providing equal pay,” said attorney Bryan Freedman, a veteran Hollywood attorney and a founding partner of Freedman Taitelman.

Failure to do so, added attorney Seth Neulight, could expose studios to litigation.

“I think you’ll see studios and their counsel take it more seriously than they have in the past,” said Neulight, a partner in the labor and employment practice group of Nixon Peabody. “There is now another tool in the toolbox for female actors to speak out.”

And another tool in the toolbox for attorneys who want to cause far left Hollywood plenty of well-deserved mischief. (And why not repeal the Hollywood tax cuts in the process, as well?)

(H/T: Virginia Postrel.)

HOUSE DEM CRAFTS CRAIGSLIST AD TO FIND SPEAKER OF THE HOUSE: Eh — it’s worth a shot; think of it as the Internet equivalent of preferring to search through the first 2000 names in the Boston telephone directory rather than the 2000 faculty members of Harvard, to modify William F. Buckley’s famous quip.

ASHE SCHOW: Education Department officials’ candid acknowledgement.

For years, those opposed to campus adjudication of sexual assault have argued that the document declaring that schools must create court systems was not legally binding. It turns out Education Department officials agree.

The document, known as the “Dear Colleague” letter, was issued in 2011 and directed schools to create courts with severely limited to no due process protections for accused students. This was done supposedly in an effort to combat an “epidemic” of campus sexual assault. Schools that didn’t punish accused students — even if the evidence didn’t support the accusation — were at risk of losing government funding and threatened with federal investigations.

Those investigations almost always (except for once, to my knowledge) result in a finding that the school violated the anti-discrimination law known as Title IX, which is the basis for the Dear Colleague letter. Should a school find an accused student not responsible, the accuser would file a claim with the Education Department’s Office for Civil Rights and the school would be investigated.

Organizations like the Foundation for Individual Rights in Education have pushed back against the Dear Colleague letter, arguing that because the document didn’t go through the proper regulatory channels, it was not legally binding. . . .

Cohn has now documented two Education Department officials who have acknowledged that the Dear Colleague letter is not legally binding. Both acknowledgements have occurred in the past few weeks.

Colleges won’t fight, though, because they’re happy to throw young men under the bus. In the War On College Men, they’ve chosen their side.

WHY SUSAN RICE PLAYED THE RACE CARD: At Commentary, Jonathan S. Tobin writes:

The headline on the Politico website for the Ross excerpts when it went up on Thursday morning was one that used a quote in which the State Department veteran claimed that Rice spread the word that “Netanyahu did everything but ‘use the N-word’ in his interactions with Obama over Iran. Later in the day, that was changed to the more neutral (and actually more in keeping with thrust of the content of the story) headline, “How Obama got to “Yes” on Iran.” But as inflammatory as that initial headline was, that one line was what has everyone talking about Ross’s book today. Indeed, although Ross’s purpose is to try to repair what he correctly terms the unnecessary damage to the alliance that was caused by the administration’s combative attitude toward Netanyahu, that false allegation by Rice actually tells us more about what’s wrong between Washington and Jerusalem than anything else.

“Ross draws a distinction between Obama’s first term, when a figure such as National Security Director Tom Donilon worked to reassure the Israelis that they were not being left alone to fend for themselves, and his last,” Tobin adds. “In his second term, Obama ceased caring about what the Israelis thought, and Donilon’s successor Susan Rice acted on that imperative.”

In his 2002 article with the classic headline “Carterpalooza,” Jay Nordlinger wrote, “No one quite realizes just how passionately anti-Israel Carter is. William Safire has reported that Cyrus Vance acknowledged that, if he had had a second term, Carter would have sold Israel down the river.”

Think of the last eight years as Jimmy Carter’s long-lost second term – dialed up to 11.

ROLL CALL: Senate Clears NDAA with Veto-Proof Majority. “The White House has threatened to nix the measure over its inclusion of tens of billions of additional war funds to supplement the Pentagon’s everyday operating costs.”

Prediction: Whatever happens here, Obama will be back asking Congress for more war money within a year.

WELL, GOOD: New Cornell president ‘would never’ require trigger warnings.

“A university is about the fullest and freest expression of ideas and arguments,” she said. “There isn’t any idea that ought not to be tested and questioned. Because that’s how we get closer to the truth.”

It’s sad that it’s refreshing to hear this from an academic administrator, but, you know, it’s refreshing to hear this from an academic administrator.

FORGET THE GENDER GAP, THE REAL ISSUE IS THE FEDERAL PAY GAP: Federal Employees’ Wages Growing Faster Than Everybody Else’s. “Federal civilian workers had an average wage of $84,153 in 2014, compared to an average in the private sector of $56,350. The federal advantage in overall compensation (wages plus benefits) is even greater. Federal compensation averaged $119,934 in 2014, which was 78 percent higher than the private-sector average of $67,246.”