Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
18 September 2000
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Out with the old, in with the new; Where are the Enterprise Communities; Your letter counts.
1. Taxsavings.bigstep.com is changing.
Beginning on October 1, 2000 a new web site Yourself-inc.com will be launched from Boulder Colorado and San Diego, California with some interesting things, including a new revised Taxman86 Newsletter in HTML format, picture included. That web site will show all Home-based businesses and others how to "do it yourself" incorporation's for $99 plus filing fees or to "do it yourself" raise capital on the Web for $499. We are convinced that the Web has unleashed the entrepreneur spirit in all of us, and with a little guidance we can achieve financial freedom, and maybe have a little more fun at doing it from your Home-based Business, Inc.
2. Check out the Taxman86 Speaks on June 7, 2000, July 1, 2000 and July 7, 2000.
We began talking about the potential of using IRC Sections 1202 and 1045, the capital gains exclusion and capital gains rollover for Qualified Small Business Stock for venture capitalists, since our earliest issues of the Taxman86 Speaks and we are pleased to see the birth of proposed IRC Section 1397B "NON RECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS"" Now we have to finish the job for the 95 Enterprise Communities.
If you want to find out where those 95 Urban and Rural Enterprise Communities are see our July 1, 2000 and July 7, 2000 issues.
As one of our readers recently said: ":...Charles is a Lawyer (Wilmington) who has left his practice to pursue business opportunities related to the New Economy. He started a movie production company... to pursue "Blair Witch Project" type films. He has registered a great number of domain names in the belief that the New Economy is where future economic opportunities lie..." IRC Section 1397B is the "New Economy"" and it will be available in the distressed areas for all to see. Let the games begin.
3. The Taxman86 Speaks out for Enterprise Communities, lets hear it from the little people.
The following letter was sent on behalf of the eight Enterprise Communities in California, and all the others. If you think the issue is as important as we do, please fax a similar letter to your senators this week [Senate Finance Committee Votes On Thursday] with faxed copies to Gene Gaines at 209-671-5082. Thanks.
September 13, 2000
To: Senator Diane Feinstein
Attn: Bevin Butler
From: Jim Schneider, LL.M., President
James E. Schneider, LL.M., Inc.
San Diego, California
Re:Sections 205, 206, and 207 of H.R. 4923 The "Community
Renewal and New Markets Act of 2000" and Sections
Sections 405, 406, and 407 of S. 2936 The "Creating New
Markets and Empowering America Act of 2000." [The "Acts"]
- We are writing you about the Acts and their applicability
to our Enterprise Community.
- We are constituents, residing in San Diego who are involved
in the Los Angeles, San Diego, Las Vegas and Imperial County
Enterprise Communities.
- We are asking you to support the effort to release the Acts from the Senate Finance Committee as soon as possible, and ask that you VOTE FOR the final bill.
- In addition and most important, we strongly urge your support, as has been given by various Democratic and Republican Congress Persons, see attached letters, the extension of the capital gains tax rollover provision [Sections 206 and 406, respectively], the capital gains exclusion [Sections 207 and 407 respectively], and the increase in Tax Exempt Facilities Bonds to $15M per Enterprise Zone Business, as is currently in effect for Washington, D.C. [Sections 205 and 405 respectively] to include our Enterprise Communities.
- The Acts, as now written only provide these benefits to Empowerment Zones, but it forgets about us in the Enterprise Communities!
PLEASE, HAVE YOUR STAFF CONTACT THE APPROPRIATE PEOPLE ON THE FINANCE COMMITTEE -- URGE THAT THESE PROVISIONS BE EXTENDED TO INCLUDE OUR ENTERPRISE COMMUNITIES.
We, California has eight Enterprise Communities, need your help.
This rollover tax incentive, and exclusion will be the most powerful and most cost-effective of enabling us people in the field to kick start economic growth in our distressed areas. The increase to $15M, in tax exempt bonds, is at no cost since we are still subject to the annual Private Activity Limitation.
Provide us the tax relief. It will not cost a single tax revenue dollar until a Enterprise Zone Business hires employees [35% or more from the Enterprise Community], creates a successful business in a distressed community and is sold at a profit. And the Acts provides for deferral if reinvested back into our Enterprise Community.
The Acts passed in the House and pending in the Senate are good -- but in the rush to adjournment in an election year, us 95 existing Enterprise Communities were forgotten.
Please remember us! We do disparately need your help.
This help will give us the power to attract local investment and venture capitol in a way we cannot today. And it will not cost one dollar unless and until the business we create make a profit and reinvest that profit back in our distressed community.
Our tax advisors estimate that the five year cost of making this change will add less than two percent to the Act's cost. Should you have any technical questions or reservations about supporting this issue, please contact me by phone, and I will arrange an immediate answer from recognized experts in this area.
Thank you for your attention.
Remember ... no cost to the government until we are successful in creating new business which is sold for a profit.
Signed,
/S/ James E. Schneider, LL.M.
cc: Congress Persons
Gene Gaines
gene.gaines@gainesgroup.com
Sterling, Virginia
Tel.: 703-433-2081
Fax: 209-671-5082
Jim Schneider, LL.M.
Taxman86
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