German Income Tax Policy Between Equity and Efficiency

Equity and efficiency are usually regarded as the main objectives of tax policy. Commenting on Dr. Reginald Hansen's doctoral dissertation, the author analyses the meaning of the equity-efficiency trade-off framework in the context of the ongoing debate regarding the reform of the German income-tax system. Schmoller's and Wagner's contrasting conceptions of income taxation are discussed. The role of the tax law as an instrument of interventionism within the framework of the social market economy, especially through the use of tax incentives, is highlighted. Contrary to Dr. Hansen, the author adopts an Austrian viewpoint and argues that both the (catallactic) efficiency and equity of tax incentives are disputable, especially but not uniquely through their (ab)use in tax shelter constructions.     

Why Japanese citizens evaluate the new indirect tax as unfair: Fairness criteria and their relative importance

The study examined citizens' fairness evaluation of the consumption tax recently introduced in Japan, and explored the underlying criteria and their relative importance in judging the fairness of the tax and the procedural fairness by which the tax was introduced. Five dimensions were obtained in factor analysis. Multiple regression analysis revealed that three dimensions contributed to total fairness of the tax: Procedural Fairness, Outcome Evaluation, and Affective Responses. Further analyses revealed that ramming the bill, sufficient discussion, and reflection of citizens' opinions were crucial for Japanese citizens judgment of procedural fairness. The results supported Leventhal's theory: ethicality, accuracy, and correctability were important.     

Retributivism,Consequentialism, and the Intrinsic Goodness of Punishment

Retributivism is commonly taken as an alternative to a consequentialist justification of punishment. It has recently been suggested, however, that retributivism can be recast as a consequentialist theory. This suggestion is shown to be untenable. The temptation to advance it is traced to an intrinsic good claim prominent in retributive thinking. This claim is examined, and is argued to be of little help in coping with the difficulties besetting the retributive theory, as well as clashing with a desert claim equally central to that theory.     

“Does Contain” vs. “Does Not Contain”: Does it Matter which GMO Label is Used?

An analytical framework where heterogeneous consumers are imperfectly informed about product content is used to investigate the welfare effects of a public labeling system. Although a mandatory label that reads Does Contain or one that reads Does Not Contain genetically modified organisms (GMOs) provides information for both the labeled and the unlabeled goods, there is no reason why these labels should cause the same welfare effects. This paper shows that the two labels imply different distortions due to the associated cost of labeling. It is shown that the label Does Contain should be used if the ratio of consumers with a strong reluctance for consuming GMO goods to indifferent consumers is high, while the label Does Not Contain should be used if this ratio is low. Given the findings, the authors argue that current labeling differences in various countries need not be the result of protectionist trade regulations.     

Death penalty attitudes and conviction proneness

Attitudes toward the death penalty are consistently predictive of jurors' verdicts in criminal trials. Two studies were conducted to find out why. In Study 1, eligible jurors viewed a videotape showing conflicting testimony by a prosecution and defense witness in an assault case. Death-qualified subjects (those permitted to serve on capital juries) interpreted testimony in a manner more favorable to the prosecution than excludable subjects (those excluded from serving on juries in capital cases due to their opposition to the death penalty), suggesting that differing interpretations of evidence may mediate the relationship between attitudes toward the death penalty and verdicts. In Study 2, the same jurors indicated their reactions to a number of hypothetical situations in which a jury had convicted an innocent defendant or acquitted a guilty one. Death qualified subjects expressed less regret concerning erroneous convictions and more regret concerning erroneous acquittals than excludable subjects. Theoretical interpretations of this pattern of results suggest that death qualified subjects may have a lower threshold of conviction than excludable subjects; thus the relationship between attitudes toward the death penalty and verdicts may also be mediated by differing thresholds of conviction.During the course of this research, William C. Thompson was supported, in part, by a National Science Foundation graduate fellowship.     

Preferential Selection Independent of Race and Gender: Effects on Self-Evaluations and Newcomer Information-Seeking Behaviors

The current study investigated the effects of an experimentally imposed program of preferential selection on beneficiary self-evaluations and newcomer information-seeking behavior. One hundred-twenty undergraduates were randomly assigned to a classification condition (in which they were informed that they tended to think in either an analytical or abstract manner) and collaborated on a task in groups of three. A fourth participant was introduced into each of these 40 extant groups under either a condition of preferential selection or not. Preferentially selected newcomers were shown to have more positive self-evaluations than their nonpreferentially selected counterparts. The presence or absence of a similar (in terms of thinking style) incumbent moderated the effect of being preferentially selected on the use of specific information-seeking behaviors.     

“Who made the code in the first place?”: Delinquency and justice in an American Indian community

This paper examines the emergence of official categories of delinquency and a formal system for the legal processing of youth on one American Indian reservation. The creation of the legal code, Children's Court and Juvenile Detention Center, and the ongoing activities of these agencies are placed in the context of the larger social system of the reservation and the history of federal policies toward Indian peoples. Through in-depth interviews, participant observation, case file review, and the analysis of existing statistics, perceptions of delinquency and justice and trends in the legal processing of adolescents in this community are explored. The implications of this imposed system of law and justice for this community are discussed.     

Transfers of Technology: A Basic Primer On Tax Considerations

The objective of this paper is to introduce managers of R&D operations to tax issues that must be considered when technology is transferred across international boundaries within the same company. The tax implications are often misunderstood or even overlooked in the technology transfer process. The paper explains how countries seek to tax their fair share of the income earned inside their borders. Since the amount of income earned depends on the price for technology paid by one part of a company to another, this transfer price is of keen interest to the tax authorities. To preserve their tax bases, therefore, countries establish rules to regulate the international transfer of goods and services, including technology, between related parties. This paper provides an overview of the economic principles underlying these rules, and illustrates their application with a series of examples.     

Plan and counterplan: Notes on moving beyond the crisis in planning theory

Conclusions In developing a working class perspective of planning theory, I have suggested that neither bourgeois nor Marxist planning theories can incorporate the dissensus tactics that are at the heart of working-class movements. Neither can they deal with the class nature of planning nor the class composition of planners. As the current social, political and economic crisis was forced on capital by the struggles (plans) of the working class, it follows that working-class counter-plans should deepen the crisis so that benefits will accrue to our side. The development of our successful counter-plans will throw their planning theory deeper into crisis. Ultimately, crisis resolution must be on the terms of the (ex-)working class.     

Terrorism and the law: Historical contexts, contemporary dilemmas, and the end(s) of democracy

Recent proposals by the G7 (and Russia) to clamp down on terrorists and terrorism do not define that which is prohibited. Instead, a threat is communicated which in turn allows, among other things, greater attention to be paid officially to camouflage charities and terrorist use of the Internet. Nevertheless, it is somewhat of a truism to note that terrorist violence is ultimately defined or characterized, for purposes of legal prohibition, within a highly politicized atmosphere. Starting with a short summary of anti-terrorist codification efforts made this century, this article examines some of the security interests cited by governments today in their respective struggles against terrorism. More specifically, it is argued that individual perceptions of personal and societal threat are heightened unnecessarily not only by a constant stream of governmental anti-terrorist rhetoric, but further, by an awareness of official and unofficial methods of anti-terrorist surveillance, and the use to which the information so obtained can be put.     

Tax compliance: An investigation using individual taxpayer compliance measurement program (TCMP) data

In this paper, we analyze the tax compliance behavior of U.S. taxpayers by using a 1979 data set that combines information from a random sample of individual tax returns, each of which has been thoroughly audited, IRS administrative records, and sociodemographic data from the Census. We find evidence that both audits and tax code provisions affect compliance. However, the effects are significant for only low-and high-income groups. Interestingly, work on the underground economy also suggests that it is these two groups that are least compliant. Our results for audits suggest that the ripple or general deterrent effect of audits may be substantially larger than the direct revenue yield of audits for high-income taxpayers. Our results for allowable subtractions from income imply that the 1986 Tax Reform Act changes that lowered allowable subtractions may have procompliance effects.     

The Case for Supply-Side Economics Revisited: The Effect of Time Preference

Despite some legitimate criticisms that are acknowledged, the basic idea behind the Laffer curve analysis of the 1980s is theoretically sound. Some of the fallacies and flaws that subsist in standard accounts of the general effects of taxation can be related to the fact that time preference is not taken into account. The primary significance of time preference has been insufficiently recognized in the mainstream literature. Apart from Buchanan's refinements of the Laffer curve analysis and besides the widespread recognition of the phenomenon of time preference by economists of the so-called Austrian school, amazingly little attention has been paid to it. This article constitutes an attempt to help remedy this situation. Moreover the Austrian analysis provides valuable insights concerning the problem of the incidence of taxation that haven't received proper recognition either.     

Chicano youth gangs and crime: the creation of a moral panic

The relationship between Chicano gangs, crime, the police, and the Chicano community is complex. Neither the problem of youth gangs nor the specialized police units created to cope with this problem arises in a social vacuum. Rather, both emerge from a particular historical structuring of social, economic, and political relations. This paper investigates how and why a moral panic arose concerning Chicano youth gangs in Phoenix in the late 1970s and early 1980s. A variety of qualitative and quantitative data from media reports, interviews, and juvenile court records are used to assess whether it was the actual behavior of Chicano youths or the social imagery surrounding them that formed the basis for the gang problem in Phoenix. I suggest that the image of gangs, and especially of Chicano gangs, as violent converged with that of Mexicans and Chicanos as different to create the threat of disorder. In addition, it was in the interests of the police department to discover the gang problem and build an even greater sense of threat so as to acquire federal funding of a specialized unit.     

From coercion to deception: the changing nature of police interrogation in America

Our police, with no legal sanction whatever, employ duress, threat, bullying, a vast amount of moderate physical abuse and a certain degree of outright torture; and their inquisitions customarily begin with the demand: If you know what's good for you, you'll confess. (Ernest Jerome Hopkins, 1931)¹ Today, Ness Said, interrogation is not a matter of forcing suspects to confess but of conning them. Really, what we do is just to bullshit them (William Hart, 1981)² There is an interesting irony at work here: restrict police use of coercion, and the use of deception increases. (Gary Marx, 1988)³ In both popular discourse and academic scholarship one continually encounters references to the tradition-bound police who are resistant to change. Nothing could be further from the truth. The history of the American police over the past 100 years is the history of drastic, if not radical, change. (Samuel Walker, 1977)⁴ A longer version of this paper was presented at the Annual Meeting of the American Society of Criminology in November, 1991.     

The Place of Legal Positivism in Contemporary Constitutional States

The aim of the paper is that of discussing some recent antipositivist theses, with specific reference to the arguments that focus on the alleged incapability of legal positivism to understand and explain the complex normative structure of constitutional states. One of the central tenets of legal positivism (in its guise of methodological or conceptual positivism) is the theory of the separation between law and morality. On the assumption that in contemporary legal systems, constitutional law represents a point of intersection between law and basic moral values, antipositivists contrast legal positivism with two main arguments. First, on a more general level, the positivist theory of the separation between law and morality is questioned; then, and consequently, the neutrality thesis in the juristic study of law is rejected. The author discusses both these antipositivist arguments, and offers a brief defence of methodological positivism.     

Selective Incapacitation Revisited

The term incapacitation is an important criminological concept that implies that the offender's capacity to commit new crimes is to be concretely obstructed or reduced through confinement. The purpose of selective incapacitation is to select those particularly prone to violence and to incapacitate them. The paper presents a critical analysis of the risk prediction enterprise. The paper addresses the accuracy of prediction, the ethics of prediction, and in particular the research culture within which research on prediction occurs.     

Egocentric bias in perceived fairness: Is it observed in Japan?

Experiment 1 was a Japanese replication of the studies reported by Messicket al. (1985) and Liebrandet al. (1986). Subjects were asked to write down fair or unfair behaviors that they or others did, giving as many examples as possible in 5 min. As in the previous studies, the subjects began more fair behaviors with the word I than with others. Likewise, they began more unfair behaviors with the word others than with I. In Experiment 2, 80 examples of behaviors (40 fair and 40 unfair) were selected randomly from the results of Experiment 1. The difference between the number of frequent behaviors sorted into the fair/I category and that sorted into the unfair/I category was greater than that between the number of behaviors sorted into the fair/others and that sorted to be unfair/others. Salient behaviors were more likely to be sorted into the category of unfair than into fair, and more likely to be sorted into others than I. On the whole, the egocentric bias of fairness was confirmed in Japan as well as in the Netherlands and the United States. However, in both experiments, gender differences were found; women, compared to men, recalled more others' behavior than their own and were likely to attribute fair and/or unfair behavior to others rather than to themselves.     

Trade Secrets, Firm-Specific Human Capital, and Optimal Contracting

Trade secrets are innovations jointly produced by firms and employees that are generally not protected by patents. They are commonly protected within the framework of labor contracts, where an obligation of confidentiality is imposed upon the employee. Specifically this obligation applies to the employee even after he has left the employer for a period of time determined in the contract, known as a cooling off period. Often employees are prohibited not only from revealing trade secrets, but also from utilizing their specific human capital developed at the original place of employment in competitor firms during this period. Their specific human capital is in effect inseparable from the trade secret. Failure to protect the trade secret will result in its revelation and its becoming public and hence worthless for the innovator. The inability of an employee to reveal trade secrets and utilize his specific human capital after leaving his place of employment imposes costs and losses upon him. Some form of compensation will be paid for these contingent losses within the employment contract. Employers know that the longer the cooling off period imposed upon employees, the greater employees must be compensated for this in the contract. Longer cooling off periods thus cost the employer more, but also enable him to earn greater rents from the innovation itself. In this paper profit-maximizing periods of trade secret protection are derived, based on these two countervailing factors, and comparative statics exercises are performed. How the selection of profit-maximizing periods of trade secret protection when the incidence of resignation is itself affected by contract parameters and incentives is explored.     

The Criminological Enterprise in Europe and the United States: A Contextual Exploration

European criminology obviously means more than simply the collaborative efforts (on drugs, restorative justice, youth gangs) between researchers and scholars from Europe. In this essay, the author compares and contrasts American criminology with criminology in Europe (as it exists in individual countries), without aiming for the essence of European criminology. She points to differences between the US and Europe with regard to the criminological enterprise (such as history, scale, degree of institutionalisation, accessibility, diversity in theory and method, the critical and self-reflexive stance, and focal research questions), and to the differences in doing science, doing justice, and doing crime. American criminology is a powerful influence in Europe, although there may be a tendency to overestimate the importance of American criminology, because of the dominance of English-language publications. American criminology has made many positive contributions to the field of the study of law, crime and social control, and it continues to do so. However, if one defines the essence of American criminology as being policy-oriented, methodologically-driven, and lacking theoretical lustre, diversity, and critical edge, then the fear of Americanisation of European criminology is well-placed. It is not the criminological enterprise of the US per se, but rather the notion of Americanisation which is really at issue here.     

Do trials have real winners?

Conclusion In this paper, narrative coherence has been looked at as an institutional strategy in anticipation of the verdict rather than in retrospect of the crime or charge. The analysis of binary notions has been instrumental in the reconstruction of the coherence between the narrative(s) and the theoretical outcomes of the criminal trial. As the abstraction and polarisation of narrative versions focus on the achievement of professional consensus, the verdict, which is almost always based on the selection of a binary option does injustice to any narrative which is unfolded in the court-room. Whether the defendant is acquitted or convicted, therefore, does not make him a winner or a loser, as his personal experience is abducted and institutionalised for the facilitation of smooth institutional decision-making.