What is the New Economy?; Where is all the action; Congress is having fun but the Taxman still takes his cut.
1. We wanted to know what was the "New Economy" and found it.
How does the tax game play out in the New Economy, where everyone may be equal with their highspeed computer, web site and highspeed internet? Pretty well we think. This week Internet Taxation will be before Congress, and it appears that the Moritorium on Internet Taxes will be extended. Thus the issue of where an Internet Business is located will become a hot item. Is it possible to be located in one jurisdiction for tax purposes, and operate out of another? This will be the issue of the day for Sales Tax Purposes.
2. Lights, Camera and Action, Home-based Business here we come.
Several years ago it was hard to find anything written about the Internet; today it is all around us and growing. The San Diego Metropolitan, its writers, like Gary London, President of the London Group Realty Advisors Inc. and their advertisers like the law firm of Morrison & Foerster, LLP are putting out quality information on the Web, everyday. Everywhere there are billboards with ".COM" listings, and it is getting bigger with highspeed internet taking the place of television. Content is in we are told, and if you check out CelebStreet you will see why. For $30,000 you have the top of the line in high definitional video editing.
What does this all mean? Business and Pleasure have merged into the home, with entertainment the key. We suggest that any respectible 'hollywood' person is now on the Web with their material, and it will grow into Web Sites for fashions, music, film, etc. That means more home-based businesses.
3. This is T Week, or is it next week?
April 15 is T Day but this year it falls on Saturday so the IRS has changed the deadline to April 17, 2000. Congress also is taking their Easter recess and as such the tax bills are flying, but most will not make it. What about the REPEAL of the repeal of the installment method for accrual method taxpayers?
However, there is hope for Distressed CommunitiesH.R. 815, The American Community Renewal Act of 1999, and H.R. 2848, The New Markets Initiative, we are told. Early May 2000 is D Day. We will believe it when we see it.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.