Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
08 April 2000
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We have been traveling to Empowerment Zones/Enterprise Community; The Chairman Speaks and everyone listens; Compensation Packages are getting very interesting.
Empowerment Zones/Enterprise Community locations
We have been traveling to various Empowerment Zones/Enterprise Community locations to see the interest in the upcoming Distressed Community Proposals; there is very strong interest, especially in the ZERO CAPITAL GAINS PROPOSALS. Then Rep. Jack Kemp proposed those ZERO CAPITAL GAINS PROPOSALS in the early 80's and today Washington, D.C. has a ZERO CAPITAL GAINS ZONE, which is bringing in lots of venture capital according to the Washington Post.
The American Community Renewal Act of 1999 would create an additional 100 ZERO CAPITAL GAINS Zones, and the Chairman of the House Ways and Means likes the concept.
2. Chairman Archer Speaks on Distressed Communities Proposals.
The National Journal, one of the hot dailies reporting on Washington, D.C. inside stuff, says that House Ways and Means Chairman Archer stated: "...one of the really good ideas is to have a capital gains cut in the distressed neighborhoods..." On the other hand he is generally opposed to new tax credits that complicate the IRC. The article suggested that he is working closely with Speaker Hastert and President Clinton to finalize a package that could be forthcoming in early May 2000.
3. Compensation for key executives is rising.
If you have seen the Wall Street Journal, the USA Today, and many other publications, including last Sundays New York Times, the compensation packages for key executives is now pushing 7 to 8 digits, with stock options [what about the alternative minimum tax] leading the way. We suggest that these compensation packages are using non-qualified stock options, or restricted stock, and that IRC Section 83(b) elections are being made to avoid the alternative minimum tax issue. What about estate and gift taxes, and 'key man life insurance'. Life is getting very complicated.
As the New Economy heats up, with starting salaries of $70,000 to $150,000 at Wall Street Investment banking and legal firms, the troops are restless, and they want more 'perks' for their 80+ hour weeks. How about tax free meals and lodging?
Jim Schneider, LL.M.
Taxman86
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