Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
15 March 2000
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The Taxman86 Speaks and people are listening; The House Ways and Means Committee' Oversight Subcommittee is holding a hearing on Distressed Community Legislation; The President will sign the Small Business Tax Cut Proposals
1. The Taxman86 Speaks and you are listening
We've been having difficulties with our The Taxman86 Speaks Newsletters but we think the problem will be solved. More importantly we have heard from many who have missed the daily stuff and that makes us feel very proud of our efforts. We hope to have good news on an upscale HTML version of the Newsletter that we are working on that will really give us some interesting capabilities. More on that later.
2. Distressed Communities Legislation is coming
H.R. 3081, 'The Small Business Tax Fairness Act of 2000,' which passed the House last week, and which the President said he will veto, contained a provision for 15 Community Renewal Zones, which incorporated H.R. 815, 'The American Community Renewal Act of 1999,' effective January 01, 2001.
On Thursday of last week the Wall Street Journal's Tax Writer said: '...Mr. Hastert [House Speaker] then plans...to finalize negotiations with the White House on a modest tax relief package for poor communities...' at A-6, The Wall Street Journal, March 9, 2000.
On Friday the 10th the House Ways and Means Committee's Oversite Subcommittee Announced that it will be holding a hearing to review all this material, and that the Ways and Means Committee will draft a Distressed Communities Tax Incentive Package.
Included within that Distressed Communities Tax Incentive Package will be proposed changes to Specialized Small Business Investment Companies ['SSBICs'] that have been passed by the House last year but which did not make the final tax bill that the President vetoed.
The President re-submitted in his fiscal 2001 budget revisions to SSBICs and to the IRC Section 1044 Market Gains Roll Over Provision, increasing to $750,000 for individuals and $2M for Corporations, which we have spoken about many times [today IRC Section 1044 deals with $50,000 per year ($500,000 lifetime) for Individuals and $250,000 per year ($1M lifetime) for Corporations].
These IRC Section 1044 changes are effective for sales after enactment, which could be as soon as June of this year. Moreover, the President's New Markets Initiative, 10 new Empowerment Zones for cities such as San Diego, Las Vegas, Pittsburge and Community Renewal Zones, effective for January 01, 2001 could become a reality under the proposed legislation.
Meanwhile the Dot-Com Incubator Programs at the various major Business Schools continue to heat up. Puting these incubators in the distressed communities, is an idea whose time has come.
3. Keep the Pressure Up!
Senior Members of the House Ways and Means Committee predict that H.R. 3081, 'The Small Business Tax Fairness Act of 2000,' will be signed because of all the non-controversial goodies, including increased Low Income Housing Credits, Health Benefits, and other things, but is urging the Small Business Lobbies to put the pressure on. WE AGREE! (For more information, check out this TaxAnalysts.org article.)
Jim Schneider, LL.M.
Taxman86
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