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Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
07 August 2000
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It takes a village; The marriage penalty got vetoed; We need help now.

1. First came Ernie, then Eli.

Ernest Hahn knew how to build shopping centers, and he re-created downtown San Diego. Eli Broad knew how to build subdivisions and now he is taking on downtown Los Angeles. The vision of Eli Broad is strong but he picked the wrong street, Grand. It is cold and windy surrounded by high rise buildings on top of the hill. However, help is on its way because the Los Angeles Federal Empowerment Zone is within blocks, and when he sees it, Katie bar the door. Eli Broad is a CPA and knows tax incentives, built an insurance company on tax incentives, and in our opinion will bring that tax knowledge to downtown Los Angeles.

How will he see the light? Coming soon will be Bandwidth Park.com "...turning bad neighborhoods into great neighborhoods--turning distressed communities of the old economy into bandwidth-parks of the new economy..." with the home-based business at the heart of the program. [We also expect the issue of inner cities tax incentives will take a front row stage with Senator Joe Lieberman being added to the Democratic Ticket, see below]. Taxsavings begins at home, as we say and we believe it.

The key is linking the good with the bad, it is called inclusion to some, but we call it synergy, and critical mass, the key to any successful venture. However, it does take starpower and the Democrats appear to have that.

Internet and starpower are going to rule the world, let's bring it downtown.

2. What is a risky tax scheme, someone elses tax cuts.

The Marriage Penalty Relief's Veto made page one on every Sunday's News. and the President knows how to do a sound bite. Who would have benefited from the $260B tax relief measure? Today the 15% range for a single person is $0 to $26,250 and for a married couple $0 to $43,050. As proposed the married couple will get an increase to $52,500 or $9,450 in the 15% bracket vs. the 28% bracket or a tax savings range of $240 to $1,800 depending on income levels phased in over five years.

"...This largely affects families in which one spouse earns most of the family income. Most of the bill's tax reductions come from enlarging the bottom 15 percent tax bracket and increasing the standard tax deduction for couples filing jointly. "This would disproportionately go to the wealthiest Americans [those over $70,000]...The president believes in tax cuts, but tax cuts targeted at working families..." How much do the firefighters and their spouses make that we saw marching on Saturday in support of this veto? Are they rich? On the other hand there is a message, tax cuts are around the corner if you go with Bush, no more than 33 1/3%.

In 1998 it was the "Taxpayers Relief Act," passed by the House that would have broken the bank, at a total cost of $86B over five years. That was a risky tax scheme that would have benefited the rich, do not believe it. Where is the support for the small home-based business owner, like 100% deductions for health coverage, or increased IRC Section 179 deductions, the Marriage Penalty, or the $1M Unified Credits, read it and weep!

3. In 1995 it was S.1252, "Enhanced Enterprise Zones Act of 1995"

Today it appears that the Co-Chair of the Renewal Community Caucus and Co-Sponsor of S. 2779 "American Community Renewal and New Markets Empowerment Act." will be the Democratic Vice Presidential Candidate. Lets hear it for the Bridgeport Enterprise Community

Senator Lieberman worked with then Congressman Jack Kemp in the early 80's to bring tax incentives to the inner cities. Hopefully his nomination will bring this to reality come September.

Jim Schneider, LL.M.

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