Professor Marjorie Kornhauser's chapter, "The Story of Eisner v. Macomber: The Continuing Role of 'Realization' in Tax Law and Policy," has been re-published in the second edition of Tax Stories.
The chapter first provides a detailed history of the case and then describes its profound influence on the development of the income tax system. "The key to its continuing importance lies in its constitutionally framed explication of realization, one of the most stable, and powerful, elements of an almost constantly changing income tax," Kornhauser writes. "By the time the Court (apparently) downgraded the realization requirement to mere administrative convenience, the case had already left its indelible mark on key elements of the income tax. Not only did it ensure that realization was deeply embedded in the system, but it also influenced several other important areas of taxation."
Tax Stories, edited by Paul L. Caron, Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law, explores the historical contexts of seminal federal income tax cases and the role they continue to play in our current tax law.
To read Kornhauser's article, click here.
Kornhauser's research focuses on the intersection of federal income taxation and society, and explores the philosophical, social, political, gendered and historical aspects of taxation. She enjoys helping students learn about this intersection and understand the more technical aspects of taxation.