Political Justice and Tax Policy: The Social Welfare Organization Case

Texas A&M Law Review, Vol. 8, p. 271, 2021

U. of Pittsburgh Legal Studies Research Paper No. 2020-15

61 Pages Posted: 28 Apr 2020 Last revised: 12 Feb 2021

See all articles by Philip Hackney

Philip Hackney

University of Pittsburgh - School of Law

Date Written: April 28, 2020

Abstract

In addition to valuing whether a tax policy is equitable, efficient, and administrable, I argue we should ask if a tax policy is politically just. Others have made a similar case for valuing political justice as democracy in implementing just tax policy. I join that call and highlight why it matters in one arena – tax exemption. I argue that politically just tax policy does the least harm to the democratic functioning of our government and may ideally enhance it. I argue that our right to an equal voice in collective decision making is the most fundamental value of political justice. To test this case, I evaluate our choice to exempt ‘social welfare organizations’ from the U.S. income tax. In addition to efficiency and equity, I also ask whether the policy is politically just in a democratic sense. I examine three models of democratic justice: liberal, republican, and deliberative. In making the democratic case I try to find commonalities among the three in order to further what an agreed upon notion of democratic justice might look like in the tax context. I contend that the notion of democratic justice must exist at the substantive level of Code. This Code level application demonstrates that the typical criteria of efficiency and fairness do not provide sufficient criteria to evaluate the justice of tax-exempt policy. There are likely significant other parts of income tax policy that need to be considered from the value of political justice as democracy as well.

Keywords: 501(c)(4), tax exempt, nonprofit, Habermas, democracy, deliberative democracy, tax policy, political justice, dark money, social welfare organization, tax law, tax theory, liberal democracy, republican democracy, equity, efficiency, internal revenue code

JEL Classification: K34, K23, H11, H2, H20, H23, H25,H41 H50, P16

Suggested Citation

Hackney, Philip, Political Justice and Tax Policy: The Social Welfare Organization Case (April 28, 2020). Texas A&M Law Review, Vol. 8, p. 271, 2021, U. of Pittsburgh Legal Studies Research Paper No. 2020-15, Available at SSRN: https://ssrn.com/abstract=3587606

Philip Hackney (Contact Author)

University of Pittsburgh - School of Law ( email )

3900 Forbes Ave.
Pittsburgh, PA 15260
United States
412.643.0434 (Phone)
412.648.2649 (Fax)

HOME PAGE: http://www.law.pitt.edu/people/philip-hackney

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
83
Abstract Views
498
rank
345,948
PlumX Metrics