It is election day and we saw Bush and McCain yesterday; The President Speaks, and the Joint Committee on Taxation listens; and Congress is real busy this week
We may be back online and will be up and running
from our backup if not. The transfer of wealth is back on the
front burner, and proves again why the President is wrong in
opposing some form of death tax relief. The story goes that
'first tax advisor' was a sheepherder who knew of a back entrance
into Rome for a fee, so that traders could avoid the newly
installed Roman Import tax. It appears that this story is just as
true today, as it was in Roman Times.
1. California is important
Today is election day in California and for the first time in many the Presidential Candidates were out in full force for a primary. San Diego County is very important because it has traditionally been a swing county; as San Diego County goes, so goes California, along with its 5+ Congressional Districts.
Yesterday we saw Bush in the morning and McCain in the afternoon, and their stump speechs were interesting. Tax policy appears to be real important, and in both cases the candidates spoke about their goals, including tearing up the 44,000 page IRC, helping out the ones who have been left behind, and encouraging small business owners.
The devil is in the details, and in one candidate's speech, tearing up 44,000 pages [we are not quite sure where that number comes from but the IRC is complicated, but so is the Bankrupcy Code, the Labor Code, and try the Financial Code, if you think the IRC is complicated!] We wondered what was his alternative?
2. President Clinton's Fiscal 2001 Budget is tax driven
Yesterday the Joint Committee on Taxation ['JCT'] published their report on the President's Fiscal 2001 Budget's tax proposals, and it is very interesting to say the least, all 500+ pages [Pgs. 69 to 71 is Specialized small business investment company ('SSBIC') tax incentives]. They do this every year, and the JCT explain the President's proposals as it relates to existing law, the pros and cons of the specific proposal, and what will happen if the proposal is passed. They also cost out the various proposals so that everyone can see what various items cost, over the next ten years.
The JCT also costs out existing tax provisions so that we can see what the Homeowners Interest Deduction costs, what capital gains costs, health benefits, etc. If you look at the existing costs, Employer Pension Benefits is a biggie, with Meals and Lodging not so big, and education so, so.
We suggest that if you want to see why the IRC is so complicated that a quick review of this material could be helpful. As an aside, PI [Pre Internet] would have required you to order a copy of the JCT's work from the Government Printing Office, and as such was limited to those in Washington, D.C. on the day of issue. Today AI [After Internet] it is available for everyone to see, FREE!
3. The House of Representatives votes this week on Small Business and Distressed Community Tax Cuts
Late last year the House of Representatives tried to pass H.R. 3081 'Wage & Employment Growth Act of 1999,' [Minimum Wage and Small Business Tax Cuts] but the votes were not there. This week the House will take up H.R. 3081, or will it?
It appears, based on the Tax Analysts Report, that the Chairman of the House Ways and Means Committee has introduced another Minimum Wage/Small Business Tax Cut Bill, H.R. 3832 [per the Rules Committee that will hear H.R. 3081 and H.R. 3833, a new Minimum Wage Bill late Wednesday] for a House Floor Vote on Thursday, and it will contain seven things previously passed by the Committee, including Pension Reform and Estate anf Gift Repeal, and one that was not [Installment Sales Relief]. More on that later.
['...The community renewal tax provisions (15 Renewal Zones) will be voted on tomorrow as part of the larger small business tax bill tomorrow. Because of this fast-track schedule (after 5 years of work!)...' per Rep. J.C. Watts, Jr. Office (03/07/00)]
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.