Showing papers by "Robert W. McGee published in 2000"
TL;DR: In this paper, the authors summarized the results of interviews conducted in Armenia to determine the reasons why Armenians evade the payment of taxes and found that tax evasion is easy because there is no mechanism in place to collect taxes and there is a widespread feeling that people do not owe anything to the government because the government does not do anything for them.
Abstract: This article summarizes the results of interviews conducted in Armenia to determine the reasons why Armenians evade the payment of taxes. The two main reasons the author found were that tax evasion is easy because there is no mechanism in place to collect taxes and there is a widespread feeling that people do not owe anything to the government because the government does not do anything for them.
107Â citations
TL;DR: In this article, the authors explore this neglected aspect of the issue and develop some ethical guidelines for individuals to follow, which are based on the principle that people have a moral obligation to pay their fair share of taxes.
Abstract: There is a general feeling that people have a moral obligation to pay their fair share of taxes and that people who pay less than their fair share are acting immorally. Yet little is said about what fair share might be. The author explores this neglected aspect of the issue and develops some ethical guidelines for individuals to follow.
40Â citations
TL;DR: In this article, the authors explore evasion from several economic, ethical and religious perspectives, and conclude that evasion is not always a good idea. But, there may be ways to purchase a product and avoid the tariff.
Abstract: Tariffs are a form of sales or excise taxation in the sense that they force people to pay more for a product than would be the case in a free market. Just as one can avoid a sales tax by not making a purchase, one may avoid a tariff by not purchasing the product on which the tariff is placed. However, there may be ways to purchase a product and avoid the tariff. In such cases, is evasion unethical? The author explores this question from several economic, ethical and religious perspectives.
31Â citations
TL;DR: The ethics of tax evasion has been relatively ignored in both the accounting and ethics literature as discussed by the authors and the recent work that has been done in this area has focused primarily on the ethics of evading the income tax.
Abstract: The ethics of tax evasion has been relatively ignored in both the accounting and ethics literature. The recent work that has been done in this area has focused primarily on the ethics of evading the income tax. This article builds on that literature by looking at the ethical questions involved in evading the estate tax.
31Â citations
TL;DR: In this article, the authors address the issue of whether it is unethical to evade the Social Security tax and discuss the ethics of tax evasion in generalist and philosophical literature on tax evasion.
Abstract: The accounting and philosophical literature on tax evasion has been scant, at least until recently The few articles that have discussed the ethics of tax evasion have usually taken either a generalist approach or have focused their attention on the ethics of evading income taxes This article is the first to address the issue of whether it is unethical to evade the Social Security tax
29Â citations
TL;DR: In this article, the authors address the issue of whether it is unethical to evade the capital gains tax, and present an ethical analysis of the tax evasion in the context of tax evasion.
Abstract: The accounting and philosophical literature on tax evasion has been scant, at least until recently. The few articles that have discussed the ethics of tax evasion have usually taken either a generalist approach or have focused their attention on the ethics of evading income taxes. This article is the first to address the issue of whether it is unethical to evade the capital gains tax.
29Â citations
TL;DR: This paper examined the "taking" clause of the U.S. Constitution to determine whether applying it to "sanction" losses would be a logical and appropriate extension of the law.
Abstract: Numerous studies have found that trade sanctions are ineffective, and even at times counterproductive. President Jimmy Carter's ban on the sale of American wheat to Russia harmed U.S. farmers and benefited Canadian farmers. The long-standing sanctions against Cuba have denied American investors many profit opportunities, to the delight of Mexican, Spanish, and other investors, who are "gobbling up" Cuban market share in the absence of American competition. The sanctions against Iraq have succeeded only in destroying an economy and fostering resentment against the United States. Poverty and ill will will engender long-term harmful repercussions. The literature on sanctions has focused either on the direct economic effects or the human effects. Little or nothing has been written about the indirect economic effects that must be borne by the businesses that are prevented from trading as a result of sanctions. Even less has been written about the issue of compensation to these businesses. This paper will attempt to fill that void. The "Takings" Clause of the Fifth Amendment of the U.S. Constitution calls for compensating those who suffer losses because the government confiscates their property. In recent years, the "Takings" Clause has been extended to include regulatory takings, mostly in the area of environmental regulation. So far, the "Takings" Clause has not been extended to compensate businesses that lose out because the government, in essence, shuts them down as a result of economic sanctions. Yet, many American businesses must at least partially close down operations because of sanctions. Accordingly, this paper will examine the "Takings" Clause to determine whether applying it to "sanction" losses would be a logical and appropriate extension of the law.
20Â citations
TL;DR: In this paper, the authors examine the question of whether it is ethical for company officials to use the force of government to reduce or eliminate foreign competition, using the antidumping laws as a case study.
Abstract: This paper examines the question of whether it is ethical for company officials to use the force of government to reduce or eliminate foreign competition, using the antidumping laws as a case study. Antidumping laws are ostensibly aimed at preventing foreign producers from dumping their products on the domestic market at abnormally low prices. Foreign companies run afoul of the antidumping laws if they either sell products on a domestic market for less than the cost of production or for a price that is lower than that charged in the home market. Since the creation of the World Trade Organization, more than 130 countries will likely adopt antidumping laws as part of their trade policy. At the recently failed trade talks in Seattle, one item every country but the United States wanted to place on the agenda was a re-examination of the antidumping laws. The stated purpose of the antidumping laws is to prevent unfair trade and to punish foreign producers for predatory pricing. The practical effect, however, is to prevent foreign producers from selling their products in a domestic market, even when pricing has not been abnormally low or predatory. The way the antidumping laws are structured, domestic producers can enlist the help of government to prevent foreign competition even when there has been no dumping. This paper begins with a brief examination of the antidumping laws, then examines several ethical questions related to the antidumping laws. The main question to be addressed is whether, and under what circumstances, it is ethical for domestic producers to ask government to launch an antidumping investigation against a foreign competitor. Related questions examined include: (1) Whether it is ethical to ask the government to launch an antidumping investigation even when the domestic company making the request knows that dumping has not occurred; (2) Whether it is ethical to ask for an antidumping investigation in cases where dumping (according to the definition of dumping) has occurred, where the effect is to help the domestic producers at the expense of the general public. The paper will examine these questions by applying both utilitarian and nonutilitarian approaches.
18Â citations
TL;DR: The main reason why antidumping laws were supported in the early days was to prevent predatory pricing as discussed by the authors, however, the main problem with the predatory pricing argument is that predatory pricing does not exist.
Abstract: Reasons for the Antidumping Laws Before the ethical aspects of antidumping laws can be discussed it is necessary to spend some time discussing the antidumping laws themselves, what they are, what they are intended to accomplish, what they actually accomplish and what can and should be done if they do not accomplish what they are supposed to accomplish. All these points have been covered elsewhere in the literature, so this article will merely review and summarize the literature rather than attempt to break new ground. Where new ground will be broken is in the section that discusses some ethical aspects of the antidumping laws that have been all but ignored in both the trade and ethics literature. Those who support the antidumping laws generally do so for one of two reasons.' The dominant reason why antidumping laws were supported in the early days was to prevent predatory pricing. The Antidumping Duty Act of 1916" was passed in response to alleged German predatory dumping during World War I.3 The main problem with the predatory pricing argument is that predatory pricing does not exist. Furthermore, if it did exist, it would benefit consumers, whom the antitrust laws were supposedly designed to protect." Studies that have been done on this point have been more or less in agreement that predatory pricing behavior is difficult, if not impossible to find, and in the few cases where it might have been found, it has always benefited consumers at the expense of the predat~r.~ James Bovard states that there are no known cases in the last 100 years where predatory pricing has achieved its goal of driving competitors out of existence, followed by the reaping of monopoly profits by the predat~r.~ One might reach a similar conclusion in the absence of studies by a priori reasoning.' Predatory pricing is irrational. The predatory pricing argument begins with the premise that it is possible for a predator to drive down prices to the point where all competitors go out of business, never to return, at which point the predator can increase prices to more than recover former losses and reap mondpoly profits. There are several problems with this premise.
18Â citations
TL;DR: In this article, the authors point out some welfare problems with antidumping laws - they are a negative-sum game - and discuss whether the antidumping law are capable of being reformed or if they should be repealed outright.
Abstract: This paper begins with a general discussion and overview of the antidumping laws, then proceeds to discuss recent trends in the application of antidumping laws, with special reference to Korea, both as a target and as an initiator of antidumping investigations. The authors point out some welfare problems with antidumping laws - they are a negative-sum game - and discuss whether the antidumping laws are capable of being reformed or if they should be repealed outright.
16Â citations
TL;DR: In this paper, the certification and testing requirements recently adopted by the body responsible for testing and certification in Armenia as well as the thought process that went into the testing process are discussed.
Abstract: Part of the USAID Accounting Reform Project in Armenia involves reforming the certification process for accountants and auditors to meet international standards. Until Armenian certification becomes credible to the international investing community, it would be a stumbling block to capital investment, since the credibility of the financial statements of Armenian companies that were audited by Armenian accountants would lack credibility. This article discusses the certification and testing requirements recently adopted by the body responsible for testing and certification in Armenia as well as the thought process that went into the testing and certification process.
TL;DR: In this paper, the authors question whether the adoption of an affirmative action policy constitutes an act discreditable to the profession, since affirmative action programs are discriminatory and since discriminatory employment practices constitute acts of discrimination.
Abstract: Rule 501 of the AICPA's Code of Professional Conduct prohibits acts that are discreditable to the profession, as do the codes of ethics of several other professional accounting organizations. The AICPA Code includes employment discrimination as an act discreditable to the profession. Many firms have adopted affirmative action programs in an attempt to prevent discrimination. The problem is that affirmative action programs favor certain groups over others on the basis of race or gender, thus making them discriminatory programs. The author questions whether the adoption of an affirmative action policy constitutes an act discreditable to the profession, since affirmative action programs are discriminatory and since discriminatory employment practices constitute acts discreditable to the profession.
TL;DR: The authors examines the non-revenue raising uses of excise taxes and analyzes their propriety from the perspectives of economics, law and ethics, concluding that "sin taxes can be called "sin" taxes because they punish people for politically incorrect behavior like smoking and consuming alcoholic beverages".
Abstract: Excise taxes are used not only to raise revenue but also to alter or punish behavior. In many cases, excise taxes can be called "sin" taxes because they punish people for politically incorrect behavior like smoking and consuming alcoholic beverages. This article examines the nonrevenue raising uses of excise taxes and analyzes their propriety from the perspectives of economics, law and ethics.
TL;DR: In this article, the authors discuss some of the economic and ethical issues involved in using user fees as a form of public finance, and propose a tax-free public finance system based on lotteries and user fees.
Abstract: Most forms of public finance rely on force or the threat of force to collect revenue. Two forms of public finance that do not rely on force are lotteries and user fees. This article discusses some of the economic and ethical issues involved in using user fees as a form of public finance.
TL;DR: A recent study ranked Armenia 106 out of 161 countries in terms of investment desirability as discussed by the authors and outlined the steps that will need to be taken if Armenia wants to improve its ranking in future surveys.
Abstract: This article grew out of a speech the author gave at the Armenian Academy of Sciences about the investment climate in Armenia. A recent study ranked Armenia 106 out of 161 countries in terms of investment desirability. The author outlines the steps that will need to be taken if Armenia wants to improve its ranking in future surveys.
TL;DR: In this article, a review of the utilitarian arguments that have been made regarding the 150 semester-hour requirement is presented, and the authors conclude that the requirement is a bad idea because it violates rights.
Abstract: Both proponents and opponents of the 150 semester-hour accounting education requirement have used utilitarian arguments to justify their position. This paper takes a different approach. It begins with a brief review of the utilitarian arguments that have been made regarding the 150 semester-hour requirement, then proceeds to apply rights theory to the question. The paper concludes that the 150 semester-hour requirement is a bad idea because it violates rights.
TL;DR: In this paper, the authors pointed out some of the deficiencies in the present programs and offered suggestions for improvement and pointed out that the doctorate would be a high quality degree that prepares people to function at the top levels of the profession.
Abstract: The PhD is considered to be the terminal qualification in accounting. One would think that the doctorate would be a high quality degree that prepares people to function at the top levels of the profession. But such is not the case. The PhD programs presently offered by most universities do a poor job of educating students in accounting. The author points out some of the deficiencies in the present programs and offers suggestions for improvement.
TL;DR: The AICPA's Code of Professional Conduct as well as the codes of ethics of other state, national and international accounting organizations prohibits acts that are discreditable to the profession as discussed by the authors.
Abstract: Rule 501 of the AICPA's Code of Professional Conduct as well as the codes of ethics of other state, national and international accounting organizations prohibits acts that are discreditable to the profession. There are several problems with this rule. For one, it is self-serving and does more to protect the profession than the public. Many kinds of personal conduct might subject an accountant to punishment for actions that do not involve fraud or the violation of rights. Another problem is vagueness. There are few guidelines to clarify what might constitute a discreditable act. Consensual sexual acts is one such area. The author concludes that accounting organizations should not engage in policing the moral conduct of their members unless that conduct adversely affects a client or a segment of the investing public.
TL;DR: In this article, the authors examined some of the problems with the current Internal Revenue Code to see if the void for vagueness doctrine is -or should be - applicable, and concluded that it is not applicable.
Abstract: Anyone who has ever had to fill out a fairly complicated federal income tax return without having the benefit of having passed the CPA exam or without having completed a masters degree in taxation might easily ask himself the question - "Is the Internal Revenue Code void for vagueness?" The temptation may very well be to say yes, but the answer to that question is much more complicated than that. This paper looks at the void for vagueness doctrine, then examines some of the problems with the current Internal Revenue Code to see if the void for vagueness doctrine is - or should be - applicable.
TL;DR: The AICPA's Code of Professional Conduct Rule 501 prohibits acts discreditable to the profession, such as discrimination on the basis of race as mentioned in this paper, and providing scholarships that are open only to members of a minority group, or that favor minorities would therefore seemingly constitute an act that is not necessarily Discreditable, even though it is a charitable act.
Abstract: The AICPA's Code of Professional Conduct Rule 501 prohibits acts discreditable to the profession. Discrimination on the basis of race is one such act. Providing scholarships that are open only to members of a minority group, or that favor minorities would therefore seemingly constitute an act discreditable to the profession, even though it is a charitable act. This article discusses this question as well as the broader issue of what acts should constitute acts that are discreditable to the profession.
TL;DR: The AICPA's Code of Professional Conduct can be used to protect the profession, perhaps at the expense of the general public or of individual rights as discussed by the authors, and the author suggests that the Rule be repealed.
Abstract: Rule 501 of the AICPA's Code of Professional Conduct prohibits acts that are discreditable to the profession. A few examples are given but the Rule is basically open-ended. Supposedly aimed at protecting the public interest, the Rule can be quite self-serving. Rather than protecting the public, application of the Rule can be used to protect the profession, perhaps at the expense of the general public or at the expense of individual rights. The author suggests that the Rule be repealed.
TL;DR: The tax systems in western democracies, on the other hand, have become ever more complex, inefficient, and difficult to manage as discussed by the authors, to the point where the system is in danger of collapsing of its own weight.
Abstract: All governments need money in order to pay for the cost of operations. There are a number of ways that they can obtain the funds they need. Economies that are emerging from central planning to a market system are in a unique position in this regard - some would say enviable - because they have not built up large, burdensome tax collecting bureaucracies over the years. The tax systems in western democracies, on the other hand, have become ever more complex, inefficient, and difficult to manage. In the USA, for example, tax laws are passed and later amended, then amended again and again. Because laws are easier to pass than repeal, the volume and complexity of the tax law grows with each passing year, to the point, where the system is in danger of collapsing of its own weight. Over time, the tax laws have become more complex and more obscure.
TL;DR: The Republic of Armenia passed a tax law in 1997 as discussed by the authors, which was modeled along Western lines and was intended to move the country toward a market economy. But the tax law has its good points and its bad points.
Abstract: The Republic of Armenia passed a tax law in 1997. The new tax law was modeled along Western lines and was intended to move the country toward a market economy. The law has its good points and its bad points. The author summarizes the new Armenian tax law and analyzes its good and bad points from the perspectives of law, economics and ethics.
TL;DR: In this paper, the authors look at attempts to prevent consenting adults from entering into an acquisition or merger from both the utilitarian and rights perspectives and conclude that individuals who attempt to prevent consensual activity in the area of acquisitions and mergers engage in unethical conduct, whether viewed from the utilitarian ethical perspective or the perspective of property and contract rights.
Abstract: Practically every article that has ever been written about the economic, legal or ethical aspects of acquisitions and mergers has proceeded to discuss the topic from the viewpoint of the initiators, the predators, to use a pejorative term Very little has been written about the individuals who try to prevent an acquisition or a merger Still less has been written about the ethical issues involved in attempting to prevent an acquisition or merger This article attempts to fill that gap in the literature The author looks at attempts to prevent consenting adults from entering into an acquisition or merger from both the utilitarian and rights perspectives and concludes that individuals who attempt to prevent consensual activity in the area of acquisitions and mergers engage in unethical conduct, whether viewed from the utilitarian ethical perspective or the perspective of property and contract rights
TL;DR: In this article, the authors explore some of the ethical, economic and legal issues involved in using excise taxes as a tool of social engineering to alter behavior or to punish politically incorrect behavior.
Abstract: Excise taxes are one way for governments to raise the funds needed to provide services. The problem with excise taxes is that they can be imposed for other purposes as well. One other use of excise taxes is to protect special interest groups from competition. Another use is to alter behavior, to dissuade individuals from consuming politically incorrect substances like tobacco and alcohol, or to punish them with punitive tax rates if they do. This article explores some of the ethical, economic and legal issues involved in using excise taxes as a tool of social engineering to alter behavior or to punish politically incorrect behavior.
TL;DR: In this paper, the authors discuss the relative advantages of a retail consumption tax and some ethical problems inherent in the tax, and present several ethical problems with the tax. But, they do not discuss the tax's effect on the tax system.
Abstract: The retail consumption tax has several advantages over the income tax. From a utilitarian standpoint, it is more efficient and causes less distortion to the economy, at least in cases where the tax is low. However, there are some ethical problems with retail consumption taxes. The author discusses the relative advantages of a retail consumption tax and some ethical problems inherent in the tax.
TL;DR: In this article, the authors argue that the capital account crisis paradigm provides a much more appropriate perspective to frame the questions regarding the causes, cures and preventive measures raised by the Asian financial crisis.
Abstract: In this paper the authors ask whether the Asian financial crisis was unnecessary. They propose rethinking the Asian financial crisis through the relatively new capital account crisis paradigm, originally proposed by Masaru Yoshitomi. The authors argue that this paradigm provides a much more appropriate perspective to frame the questions regarding the causes, cures and preventive measures raised by the Asian financial crisis.