Income taxes distort the relationship between wages and nontaxable amenities. When the marginal tax rate increases, amenities become more valuable as the compensating differential for low-amenity jobs is taxed away. While there is evidence that the provision of amenities responds to taxes, the literature has ignored the consequences for job…

The Tax Reform Act of 1986 changed the tax laws that affect how law schools raise revenue and how law faculty make expenditures. All law faculty should become familiar with the changes so as to minimize the potentially adverse consequences to themselves and their institutions. (MSE)

The impact of the Tax Reform Act of 1986 on higher education is discussed. Background on the tax reform movement and the specific provisions of the 1986 law are examined. The law will reduce private donations, raise the cost of college, and raise the cost of operating institutions. (MLW)