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Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
21 December 2000
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The End Is Near And We Start A New Beginning; What The New Economy Really Means; The Internet Lives On.

1. What is Clinton's Legacy?

If you have not seen it check it out, the White House of course. Eight years ago the Web was in someone's office at an University, today it is on everyone's countertop or laptop, as the case may be. It also brought hope and the New Economy, including "Cyber esq." from the . The Daily Journal is legal institution located at 915 E. First Street, Los Angeles, CA 90012 in downtown Los Angeles.

More importantly "915 E. First Street, 90012 is in the Los Angeles City & County, California Empowerment Zone" For them and all the other businesses within the 31 Empowerment Zones the term Enterprise Zone Business ["EZB"] as defined in IRC Section 1397C [formerly Section 1397B] will be very important. Cash Investments [whether in debt or equity] made after this week [We assume H.R. 5662 will be signed today] in EZBs will carry with them the tax deferral taint of IRC Section 1397B just as Qualified Small Business Stock under IRC Section 1202 carries with it the benefits of IRC Section 1045, both of which came in the Clinton Administration [1993 as to the former and 1997 as to the latter and now Section 1397B in 2000].

2. Yesterday it was $250 an hour today it is free.

Lawyers live by their research, drafting documents and telephones. Years ago a company called LEXIS-NEXIS was born to provide on-line research capabilities for a very steep price like $250 an hour. Today they have "lexisone" with "Free case law, Free Forms and 16,000 Links."

3. Legislation is now available instantly on-line.

Living, working and playing in San Diego has it advantages; it was in the 80's this week. But keeping tract of tax legislation and other things was a bummer. Today with DSL our law firm is On-line 24/7/365 with instant access to the key to Congress. Want to find out what happened to H.R. 5662, just click away and you find:

"This Bill [H.R.5662] has not yet been received from GPO. This Bill has been printed in the Congressional Record as part of a Conference Report. The Bill itself will be printed within a few days. To see the Bill text in the Conference Report use the Guide to the Consolidated Appropriations Act for FY2001 Conference Report to link to the exact page number in the Congressional Record."

This is where you could check out all the former Small Business Tax Bills proposed in 1998, 1999 and 2000 that Clinton either threaten to Veto or did. This is where you can find the seeds of the "Tax Cut Act of 2001" which will bring in many pro growth things for the small business person or home based person such as $35,000 under IRC Section 179; Full deductibility of Health Insurance; Increased Pension Contributions; and the Elimination of AMT on Qualified Stock Option Exercises [is it possible that those who exercised their qualified stock options in early 2000, at big time profits and ATM liability, are selling their stock today to avoid that AMT tax with ordinary income liability to boot?].

Jim Schneider, LL.M.

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