New Paper on Tax Regulations After Loper

Ohio State University’s Blaine G. Saito new research paper argues that Loper’s impact on tax law may be “more limited than expected.” From the abstract:

Using transfer pricing as an example, the paper demonstrates that while technical regulatory details may survive challenge, fundamental changes would likely fail under the new regime. The arm’s length standard, consistently maintained since 1935 and reinforced through successive statutory amendments including the 1986 Tax Reform Act, exemplifies how Loper Bright effectively freezes agencies from making radical departures—such as shifting to formulary apportionment—from well-established regulatory frameworks. Overall, the decision introduces short-term chaos but may not dramatically increase the rate of tax regulation invalidation, though the path to stability will be turbulent.