Give Me a Break

Article Abstract:

The Congress and the Senate are debating two bills that are expressly geared to cutting the federal deficit. These bills attempt to introduce spending cuts and raise revenues through tax legislation. Closing some of the loopholes individuals use as tax shelters is a big source of revenue in both bills. Many real estate tax shelter options are under attack. The cutbacks could produce up to $500 million in lost taxes through such strategems as refusing accelerated depreciation to property financed with industrial revenue bonds, requiring issuers of student loan bonds to use all the money for student loans, instead of putting the money in a bank, and other actions. Tax exemptions are also under attack. Another provision will make income averaging for individuals more difficult. There are a few bright spots in the new legislation, especially an attempt to cut the qualifying period for capital gains from one year to six months.

Economic policy, Deficit financing, Deficit spending

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Royal Gamble

Article Abstract:

The founders of the Caesars Palace gambling casino have founded a new company, which will cater to the needs of wealthy air travellers. The new airline, called Regent Air Corp., will feature deluxe flights on customized jets. Regent acquired its first jets from Braniff Int'l. Corp. at a very low cost just as that company was going bankrupt. Part of Regent's stock is owned by officers of Regent and shareholders of a sister company, while the remainder will be sold to individual investors, as will a large number of warrants. Although Regent has run into trouble with the Civil Aeronautics Board (CAB), it has managed to overcome the problem by registering as a charter operator and subleasing its planes.

Innovations, Finance, Airlines, Corporations, Civil aviation, Corporate finance

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Hanging Up His Tomahawk

Article Abstract:

Barber Conable Jr. is a Republican Party Congressman. He has recently decided to leave Congress after twenty years. His most well known action in Congress has been as an architect of tax reform. His most recent achievement was in finding a compromise on an important Social Security issue negotiation. In a recent interview he presents his views of the current state of the economy and the tax system. He believes that income tax indexation is the most significant reform he has voted for in his twenty years in Congress. He is optimistic about Congress taking steps to lower the deficit.

Taxation, United States. Congress

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