Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
27 October 2000
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Same time Last Year, and the Year Before; What Does It Cost To Improve the Neighborhood; Big Things Are Coming.
1. The Veto is coming, the Veto is coming, $240B over 10 years is too big.
The New York Times, and the Washington Post say shame to the Republicans and let the Veto come to the big time Tax Cut of $240B over 10 years [that is about 1% of the projected $25T+++ in tax collections over the same period]. To see how the numbers shake out check the Joint Committee on Taxation's Report, and the Tax Bill itself . The Editorials say it all and we suggest you check them out at The New York Times and The Washington Post.
Where is the Surplus coming from? How about all those Home-based Businesses that we keep reading about 27M strong. Is it possible that the Small Business Revolution is increasing the self-employment income that will be subject to 15.3% tax on earnings of $80,000+ next year, or $160,000 if a partnership of two? That is $24,000 off the top plus state and federal income taxes. Invested at 5% would provide quite a nest egg at 65. Oh by the way, Popcorn is a very successful home based Internet business, not something you eat.
2. What does it cost to defer capital gains taxes on Enterprise Zone Businesses?
First off what is an Enterprise Zone Business, check out IRC Section 1397B, which suggests that you have to be located in one of the 31 Empowerment Zones, or 95 Enterprise Communities, hire 35% of your full or part time employees from the neighborhood, and then be able to sell out at a profit after one year to qualify under proposed IRC Section 1397B [Section 615 of the Taxpayers Relief Act of 2000]. Finally those capital gains profits have to be reinvested within 60 days of the gain. If all goes well it appears that the number for 40 Empowerment Zones is $700M+ over 10 years [$100M over 5 years], or possibly $1.4B [$200M over 5 years] for the 95 Enterprise Communities out of a total of $240B+++ tax bill. Assuming these numbers are correct, and how they estimate potential profits reinvested is beyond us, think of all the venture capital that has been created and reinvested in these 135 Distressed Communities [this topic is too simple for the New York Times or Washington Post Editorial Writers]
3. The Taxman86 Speaks has been silent because of its efforts on Yourself-Inc.com.
Coming soon will be the daily The Taxman86 Speaks but you will have to re register at Yourself-inc.com, that is the bad news, the good news is that it will be energized with links to discussion groups, comments and questions, and will be living color, all through the efforts of Chris Kling and the Yourself-Inc.com, Incorporated staff. We are very excited about these possibilities, and hope you will join us. Our Taxsavings website is shifting more towards IRC Section 1397B, which could have been available to the 95 Enterprise Communities, including the San Diego Enterprise Community if CCDC and the other movers and shakers had seen the light. But maybe there is an Empowerment Zone in the works [9 new ones have been promised], one that will cover all of downtown San Diego, Little Italy, Old Town/Sports Arena, or maybe one for downtown Las Vegas and the Stratosphere, only the shadow knows, effective January 01, 2002.
Jim Schneider, LL.M.
Taxman86
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