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Senate Tax Revision Plan

July 11, 1986

We now have the spectacle of the emperor marching along in all his finery with 97 faithful senators behind in similar garb.

We also have the possibility of a majority of our representatives joining the parade for fear of upsetting the emperor's march. Questions that I must raise in order to establish the merit of the bill that the Senate passed by a vote of 97 to 3 are as follows:

1--Why were sales taxes singled out as the only excluded deduction for state taxes?

2--Why are timber and oil and gas interests still in the tax-sheltered category?

3--Why are real estate investments being treated as lepers in light of number 2?

4--Why were in excess of 170 entities given special tax treatments?

5--Why was one oil company granted $100 million of relief by a vote of 73-14 by the Senate and another oil company denied relief of $50 millions by a vote of 60-33?

6--Why do the senators show favoritism to the unmarried working couples living together as opposed to the married by eliminating the working spouse deduction, contrary to all religious upbringings?

7--Why was the individual retirement account (IRA) benefit denied the taxpayer having no control over any company plan benefits he might derive?

8--Why are all deduction changes becoming effective as of Jan. 1, 1987, when the tax rate for 1987 will be a combination of 1986 and 1987 rates, somewhere around 39%?

9--Why is this called a "fair and simple tax bill"?


Beverly Hills

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