The changing economic landscape places great stress on the tax legislative process. This stress is magnified by flaws in existing statutes, and by taxpayer attempts to exploit those flaws. There are no statutory rules governing hundreds of billions of dollars of annual transactions. Much of this void is filled in (imperfectly) by Treasury regulations.
This practicum took a close look at one or two issues raised by one proposed Treasury regulation of hundreds of billions of dollars of annual transactions. They researched the relevant literature, interviewed stakeholders, and, in their individual names, provided public comments and testimony to the Treasury Department. Ultimately, they wrote a public comment, which will be published in the leading tax journal, Tax Notes.
Client: None (Impact: National)
Deliverables: Research for Tax Regulatory Project report, co-sponsored by Steyer-Taylor Center for Energy Policy and Finance, Ruth Levine, Next Steps in Updating the Regulation of Program-Related Investments: Open Questions, Large and Small (June 2015)
Students in this practicum examined key issues raised by a proposed U.S. Treasury regulation of hundreds of billions of dollars of annual transactions relating to program-related investments as policy tools that encourage social impact investing. Under Section 4944 of the Tax Code, PRIs can increase philanthropic private investment in socially beneficial projects. The practicum team researched legal and regulatory issues, interviewed over 30 stakeholders, and identified several areas of regulatory uncertainty that may be preventing the broader use of PRIs.