Two Ships Passing In The Dark; IRC Section 1045 Reborn into Section 1397B
1. Pro Bono work, where art thou?
As we have said many times, the role of a good lawyer is to put the right labels on the facts, if you will. What is Pro Bono work? Is it forming High Tech Startups in Empowerment Zones or Enterprise Communities? Why not.
We suggest that the New York Times, the Washington Post, the L.A. Times and others have not seen it, or if they have they have missed the point; urban revitalization is just not representing the 'homeless', it is also creating high paying job opportunities for the children of our future, before they become the homeless of the past.
The graffiti kids of today could become the animators of the future, and the future is now.
Getting the athletes involved can also play a role, and we suggest that these two articles are interesting reading as to what retired pro athletes are doing these days with their home- based businesses. See this article and then this one.
2. We went looking for IRC Section 1045 and this is what we found.
In 1992, then candidate Clinton made a deal with the Silicon Valley Venture Capitalists, cut capital gains, after five years, for high tech startups, and IRC Section 1202 was borne in 1993. In 1997 it got better. Capital Gains roll overs, after only six months, for "SMALL BUSINESS INVESTMENTS" which included partnerships was proposed. We suggest you check out S. 20 "Targeted Investment Incentive and Economic Growth Act of 1997" sponsored by Senator Tom Daschle, and nine other senior Democratic Senators, including Sen Reid, Sen Lieberman, Sen Dorgan, Sen Breaux, Sen Kohl, Sen Wyden, Sen Bingaman, Sen Bumpers and Sen Durbin. In 1997 Washington, D.C., was given certain tax incentives, including Zero Capital Gains for cash investment into Enterprise Zone Businesses with bipartisan support.
Today we are getting closer with H.R. 4923, "Community Renewal and New Markets Act of 2000," but most do not see it. Because it is the High Techs that get all the attention as noted by Tax Analysts. "...Democrats who want to target tax cuts to the neediest individuals are proposing breaks for the high-tech industry that would make even the staunchest Republican blush..."
Is it possible that the Los Angeles Federal Empowerment Zone and Enterprise Zone Businesses were the topic of conversation at these parties in downtown Los Angeles? "Receptions Here Are Warm-and Fuzzy." We do not think so. Is it possible that Senator Bradley, now investment banker Bradley, is on to something, we hope so, if only the New York Times could see it.
The final answer is to call it "Pro Bono," and let the law firms go at it, especially those in Washington, D.C. We suggest the Washington Post which is located within the Washington, D.C. Enterprise Community might even make a couple of $$$$$.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.