Wealth, Philanthropy and Politics — Considering 'Wealth Tax' Proposals

By Professor Ellen P. Aprill

This op-ed originally appeared in the Tuesday, October 15, 2019 edition of The Hill.

The impact of private wealth on public policy through tax-exempt organizations has garnered much attention of late, with recent scandals involving the Sacklers, Jeffrey Epstein, and a number of prestigious universities. Recent critiques, however, fail to emphasize sufficiently the role of wealth in campaign finance. Citizens United and the rise, in its wake, of Super PACS able to solicit and spend unlimited amounts make such consideration crucial. Today more than ever, political power of the wealthy means that government spending, like charitable spending, is likely to reflect the interests of the wealthy.

Current proposals for a wealth tax also need to confront this issue. On Sept. 5, as part of the Brookings Papers on Economic Activity, Emmanuel Saez and Gabriel Zucman presented an important new paper on progressive wealth taxation. The Saez-Zucman paper describes a wealth tax as a means of reducing wealth concentration needed because of such concentration’s effect on democratic institutions and policy-making. (The paper notes that political contributions are extremely concentrated, with 1.01 percent of the population accounting for over a quarter of all such contributions.) According to those present, discussion at the session included whether a wealth tax would reduce billionaires’ political influence.

To prevent abuses of a wealth tax, the Saez-Zucman paper proposes that donor advised funds — accounts at public charities for which donors can make recommendations as to the distribution or investment of amounts in the accounts — and funds in private foundations controlled by funders “should be subject to the wealth tax until the time such funds have been spent or moved fully out of the control of the donor.” (The paper leaves to another day the question about how to treat private foundations no longer controlled by the original funder and how to avoid gaming of “control.”)

Read the complete op-ed>>

5 Things You Should Know About the California Election

By Professor Jessica Levinson

This post originally appeared on the Huffington Post.

Election day is upon us. What should California voters know?

1. Jerry Brown will be re-elected as the governor.

Drought-stricken California could be hit with torrential rain. Wildfires could sweep the state. A blue moon could shine for three nights in a row. Jerry Brown will still be re-elected.

Do you want to know why? First, because he is Jerry Brown. In California a synonym for "Jerry Brown" is "someone who holds elected office." Brown has held nearly every elected office in the state of California. We know him. We're comfortable enough with him. We're going to re-elect him (again).

Second, because he is running against that guy who oversaw the Troubled Asset Relief Program (TARP). Yes, that's right. You don't even know his name. It is Neel Kashkari, by the way. He is apparently running to see how badly he will lose against the once, current, and future governor. He had handed out gas cards to get people to campaign events, spent a week living as a homeless person, and run a television commercial with a drowning child. Translation? He is going to lose.

2. Gavin Newsom will be re-elected as the lieutenant governor

You know Gavin Newsom, right? He is the former mayor of San Francisco who ordered the city clerk to issue marriage license to same-sex couples back when that violated state law. Still don't know him? He is the one with the slicked back hair who had an affair with the wife of his former deputy chief of staff and campaign manager. I thought that would ring a bell.

Newsom is running against Ron Nehring. Newsom is going to a have "party preference: Democrat" next to his name, while Nehring will have "party preference: Republican" next to his. Since this is California, and Newsom is the incumbent who hasn't done anything disastrous (or otherwise), that means Newsom will win.

Ballot Initiatives Gone Wild

By Associate Clinical Professor Jessica Levinson

This op-ed originally appeared on Politix and was re-posted by The Huffington Post.

Here a ballot initiative, there a ballot initiative, everywhere in California a ballot initiative.

How did we get here? About a hundred years ago the processes of direct democracy spread across the country. States gave their citizens the ability to directly enact laws (via the ballot initiative), to directly repeal laws (via the referendum), and to oust elected officials (via the recall). The purpose of direct democracy is to empower average citizens and decrease the power than moneyed interests may have over elected officials. Sounds quaint, doesn't it?

Welcome to 2014, when the very special interests direct democracy was meant to guard against now direct and control those processes. And specifically, welcome to California, where we have not only ousted a governor (Gray Davis) via the recall, but where we frequently use the ballot initiative process. Want to change how many lawmakers it takes to pass the state's budget? Pass a ballot initiative. Want to change the definition of marriage? Pass a ballot initiative. Want to cut or increase taxes? Pass a ballot initiative. Want to change the penalties for criminal offenses? Once again, pass a ballot initiative.

Read the complete piece.

I Am Luscious, and Other Campaign Slogans

By Associate Clinical Professor Jessica Levinson

This op-ed was originally posted on Pacific Standard.

I have a new idea to increase civic engagement, and it is all about vegan food.
Some background for the non-hipsters out there. So all three of you, listen up. There is a vegan restaurant with locations, unsurprisingly, in Los Angeles, Santa Cruz, and Berkeley, the birthing centers of true hipster culture. The fun (or perhaps failure, depending on your perspective) of this chain is how they name their dishes: Each is a personal, positive, declarative statement. Instead of rice with lentils, you'll order the "I Am Humble." Feel like hummus and pesto? You'll dine on the "I Am Abundant."

If you're a rain-on-your-parade curmudgeon like me, you'll do your best to avoid ordering the dishes by their given names. Instead of confidently telling my server, "I Am Terrific," I prefer to spend three minutes describing the dish, which is, as the name fails to indicate, made of kelp noodles. One of my very favorite dining companions suggested that I should "pick my battles," but the opportunity to avoid announcing, "I Am Liberated" (another kelp noodle dish) is well worth the time I spend boorishly pointing at the menu.