We have seen the light; Who has the best stuff; Where is the New Markets/Renewal Community Legislation.
1. The Rebirth of Hollywood.
History has a way of repeating itself, and for those that are interested, the birth of the motion picture industry is a good place to start. Thomas Edison created the technology for the Motion Picture and try to keep it to himself and his partners. The creative ones came west to avoid his lawyers and the rest is history [They came by train and landed on Spring Street between 2nd and 6th in the early 1900's, the City of Los Angeles passed a tax and they moved to the County, which is now called Hollywood].
Today the legal fights have just begun but to some the fight is already over. We agree, just go to any college campus and see what they think of legal rights and lawyers. It is all a game.
But this game is creating real economic energy, from garage bands, to web animation to HBO's Webcasts. Check this out and this. Where will all this energy go, into Home-based Businesses, including the learning industry. The day of health sites, cooking sites, venture capital sites, all alive in broadbandwidth color is coming FAST! Your favorite tax questions, answered live, or via chats, will be the rage sooner then later. Moreover, if all the players in this article are involved there must be money to be made on the Web.
2. Who has the best stuff.
3. Distressed Communities where art thou?
Next week ends the summer term for Congress and the House Speaker's Compromise with the President is still in drafting stage with the House Ways and Means Chairman we have been told. However, one senate bill, S. 2779, "The New Markets/Renewal Community Act" has been filed with another version on its way. Will Enterprise Communities  be in the latest version, we hope so. Will tax incentives work to change neighborhoods, we think so when all the creative ones get involved.
If we are correct then lots of offshore creative tax planning will start working it way onshore in tax favored zones, assuming you meet the legislative criteria under IRC Section 1397B, to wit, 35% of the full or part time employees are from the neighborhood.
Can the employer provide tax free housing to those employees? Why not, especially if each employee has a computer, high speed internet and ties into the Employer's Learning Channel, all paid for by the Employer at no tax cost to the employee. It is this linkage that brings the employer's business premises into the housing. Add tax free Equity Kickers and we believe you have created the ultimate Employee Incentive Package. Our thanks to Apple and Pacbell for making this all possible at $59 per month per employee.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.