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Crains, Manhattan Chamber Congress, Senator Gillebrand, 5 Ws & H of proposal; 1 pager, $1trillion cash solution; Congressman Himes, Congressman Larson game changer book series

Crains, Manhattan Chamber Congress, Senator Gillebrand, 5 Ws & H of proposal; 1 pager, $1trillion cash solution; Congressman Himes, Congressman Larson game changer book series

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  • 1. CONTENTSDescription Requested by Chamber of Congress President (5Ws & H) for Senator Gillibrand & Editorial Board Crain’s NY Business P.2Small Business Usage of Proposed Tax Benefit Exchange for Crain’s Reporter P.3Better Solution to Repatriate $1 Trillion of Foreign Profits back to US re NYtimes P.4Letter to Senator Blumenthal from iklein@electronic-boardroom.com P.5-6Letter to Congressman Larson & Senator Himes iklein@electronic-boardroom.com P.7-8Support Response from US Congress Representative Himes P.9Letter to Chairman House Ways & Means Committee, Dave Camp P.10Frequently Asked Questions p.11-12Electronic Venture Game Changers Series: Formulas to Capitalize on The 5th Estate Megatrend P.13 1
  • 2. Description Requested by Nancy Ploeger, Chamber of Congress President to Senator Kirsten Gillibrand & Editorial Board Crain’s NY BusinessWho: Technology & Marketing Ventures Inc. (TMVi) is a woman-owned, Manhattan Chamber of Commerce business and British Airways’ Face of Opportunity contest winner. June Klein, CEO is a financial information technologist known for positively changing competitive landscapes in electronic governance and trading. TMVi’s General Counsel reinvented a corporate tax benefit sale program to benefit small businesses.Why: Evidence exists that being able to actually use depreciation deductions creates jobs and jumpstarts the US economy, but it requires a tax law tweak. #1 problem at Global Entrepreneur’s Conference was bank reluctance to fund small business growth.Where & When: Proposal needs to reach the House Ways and Means Committee and the Senate Finance Committee for approval asap.What: TMVi Tax Benefit Exchange™ proposal allows a small business to sell its Section 1245 depreciation on newly purchased equipment to any other US taxpayer. The sales price would be at a market price determined on a bid and asked basis. Private capital, without public funds, would be used to create the Tax Benefit Exchange. There would be no secondary market to avoid complexities in enforcement. Thus, private capital would be used to partially fund small business growth and private employment. This private marketplace would enable small businesses to monetize unused new depreciation tax benefits. Since the depreciation deduction is already in the law and scored by the Congressional Budget Office, no increase in the deficit would occur.How: The Tax Benefit Exchange proposal more efficiently uses the depreciation tax benefit already enacted by Congress. The IRS administration of the sale of depreciation deductions would require a simple form similar to Form 8023 which allows for the election of Section 338(h)(10). The buyer and seller would each sign the form with their names, addresses and tax ID numbers and attach it to their returns. The tax basis of the asset for which the depreciation is sold would be zero while the book basis remains unchanged.Contact June Kleinjklein@tmv.com T: 212/628-2178 C: 917-601-2444http://the-5th-estate.com http://5th.electronic-boardroom.com/handout2011feb9.pdf 2
  • 3. March 18, 2011 jklein@tmv.com for Crain’s Reporter: Eilene Zimmerman Small Business Usage of Proposed Tax Benefit ExchangeThe Tax Benefit Exchange enables small businesses to sell depreciation deductions forcash. A depreciation deduction is a deduction against income not a credit against tax.Corporations and individuals who are at the top tax rate of 35% can benefit most fromutilizing the depreciation deduction.Most small businesses are S corps or LLCs. S corps and LLCs do not pay tax. The tax ispaid by the stockholder (for a S corp) or the member (for a LLC).Below is an example of a small business that will benefit if legislation is passed byCongress and will not benefit under current tax law.Example for 2011 Tax Return- Newco is a LLC or a S corp It has income of $1,000,000,expenses of 1,000,000 and a 100% bonus depreciation deduction of $1,000,000 for 2011.June owns all of the LLC or S corp. Assuming no other deductions, Newco as a passthrough would result in June reporting:$1,000,000 Gross income -1,000,000 employee expenses - 1,000,000 depreciation expense=($1,000,000) loss. If June does not have $1,000,000 of income on her personal 1040 return,the depreciation deduction gives June no current tax benefit.If Congress passes legislation allowing the sale of depreciation deductions, Newco couldsell the $1,000,000 depreciation deduction to another taxpayer who has tax liability.Newco could get $300,000+ from a taxpayer who is in the 35% tax bracket on a bid andasked basis for the $1,000,000 depreciation deduction. The $300,000+ cash amount could then be used to reduce debt, use as working capital, hire more employees or expand the business.If Congress does not pass legislation allowing the sale of depreciation deductions, Newcowill have $300,000+ less cash and will likely not be able to currently reduce its debt,increase its working capital, hire more employees nor expand the business. Everytaxpayer is different. The Tax Benefit Exchange gives the small business owner anotheroption to help finance growth and hire more employees immediately. 3
  • 4. In response to: “Apple, Cisco, Google, Seek Tax Relief to Repatriate Cash”Editor in Chief EBN 3/24/2011 andhttp://dealbook.nytimes.com/2010/10/27/u-s-companies-hoarding-almost-1-trillion-cash/US companies have more than $1 trillion in cash outside the country, funds they could use to create jobs at home -- but theylack the incentive to do so because of the taxman, according to a new organization set up to prod Congress on the issue.More than two-thirds of the organizations 18 supporters are technology companies involved either in software developmentor electronics hardware design and sales. They include Adobe Systems Inc. (Nasdaq: ADBE), Apple Inc. (Nasdaq: AAPL),Broadcom Corp. (Nasdaq: BRCM), CA Technologies (Nasdaq: CA), Cisco Systems Inc. (Nasdaq: CSCO), EMC Corp.(NYSE: EMC), Google (Nasdaq: GOOG), Microsoft Corp. (Nasdaq: MSFT), Oracle Corp. (Nasdaq: ORCL), and QualcommInc. (Nasdaq: QCOM). In fact, it wouldnt be stretching the truth to say the supporters of this initiative are mainly Americantechnology companies with huge cash hoards outside thecountry.http://www.ebnonline.com/author.asp?section_id=1038&doc_id=205093Better Solution to Repatriate $1 Trillion of Foreign Profits back to USIra Klein, Tax Law Expert 3/25/2011 12:59:07 PMIra & June Klein of Technology & Marketing Ventures Inc have sent a solution to US Senator Gillebrand (NY) to proposelegislation to permit the sale of new depreciation deductions without increasing the deficit. We are calling upon technologycompanies who are at the 35% tax rate, to support the proposed legislation and get it passed.If the $1 trillion of cash coming back from foreign profits were to be used to fund small businesses per the TMVi Tax BenefitExchange, repatriation of $1 trillion of foreign profits by US corporations would improve the US economy and create US jobs.Small businesses create 70% of all new private sector jobs while large corporations produce less than 30% of new privatesector jobs. The 2004 experience permitting a tax holiday in the repatriation of foreign profits produced marginal benefits tothe US economy.The TMVi Tax Benefit Exchange would permit the tax free repatriation of foreign profits if those profits are used to buy unusednew depreciation deductions from small businesses. This purchase would benefit small businesses by providing cash fromunused new depreciation deductions and effectively lowering their new equipment costs. Small and large businesses wouldbenefit from TMVi Tax Benefit Exchanges streamlined simple process of matching/settling the sale of depreciation benefitswith buyers purchases.Further, such a purchase would provide a net profit to the large US corporation = difference between the 35% tax rate and thetax benefit purchase price cleared on the TMVi Tax Benefit Exchange. Thus technology companies who generally pay taxesat the top rate would benefit. http://5th.electronic-boardroom.com/handou-tax-benefits-exchange 4
  • 5. Letter to Senator Blumental from iklein@electronic-boardroom.com ---------------------------------------------------------------------------------------------------------------------------- March 11, 2011Senator Richard BlumenthalG55 Dirksen Senate Office BuildingWashington, DC 20510 RE: How Small Businesses Can Get Private Capital and Create Jobs: Meeting Request to Propose Solution to Senate Finance CommitteeDear Senator Blumenthal:I write to you as my senator in Washington, DC. I have previously written CongressmanJim Himes, as my local Congressman, and to Congressman John Larson, as theConnecticut member of the House Ways and Means Committee. I am a Westport resident, former Senior Tax Counsel for Danbury’s Union Carbide / DowChemical and adjunct Professor of tax law for the MBA and CFP programs at FairfieldUniversity. Further, as a qualified tax lawyer, JD BU Law and LLM in tax NYU Law,who previously worked for a Wall Street law firm, I am not representing any client andhave created the enclosed tax proposal pro bono. The US faces a serious job crisis andneeds to explore solutions. Yet, my attempts at using standard social change platformssuch as comments on articles or government websites have resulted in responses like:continuously asking for donations, “no response” which is good for a venter, we’ll get backto you in 4-6 months, here is our repetitive newsletter which has nothing to do with thequestion you asked…My intent is to be constructive by: addressing President Obama’s ongoing calls since 11/5/2010 for innovative ideas directed at small businesses which account for 70% of all new private sector jobs; creating, focusing and shortening a feedback loop from expert solution providers to government decision makers in order to solve the US job problem.I have drafted a deficit neutral, bipartisan flow process to help US small businessesobtain private capital and hence grow their business and employ US workers. I enclose acopy of the proposal: “Tax Benefit Exchange: How Small Businesses Can Get PrivateCapital and Create Jobs.” The tax proposal is contained in the first 5 pages. The taxproposal is also an application of a social change platform for public initiatives.My wife, June Klein, developed a “distributed public expertise” web site in associationwith the Oxford Internet Institute, Oxford University UK, to post fresh ideas to solvegovernment problems and recently won a small business award from British Airways. Atthe British Airways London event honoring global entrepreneurial winners, Lord StephenGreene the UK Minister for Trade and Investment requested the Tax Benefit Exchangeproposal and is evaluating it as a way to increase small business growth and decrease UKunemployment. 5
  • 6. The Tax Benefit Exchange proposal allows a small business to sell its Section 1245depreciation on newly purchased equipment to any other US taxpayer. The sales pricewould be at a market price determined on a bid and asked basis. Private capital, withoutpublic funds, would be used to create the Tax Benefit Exchange. There would be nosecondary market to avoid complexities in enforcement. Thus, private capital would beused to partially fund small business growth and private employment. Such a privatemarketplace enables small businesses to monetize currently any unused new depreciationtax benefits encouraged by Congress. Since the depreciation deduction is already in thelaw and scored by the CBO, no increase in the deficit would occur. The Tax BenefitExchange proposal more efficiently uses the depreciation tax benefit already enacted byCongress.The IRS administration of the sale of depreciation deductions would require a simpleform similar to Form 8023 which allows for the election of Section 338(h)(10). The buyerand seller would each sign the form with their names, addresses and tax ID numbers andattach it to their returns. The tax basis of the asset for which the depreciation is soldwould be zero while the book basis remains unchanged.At the conference in London, UK attended by many US small businesses and start ups,the common theme was their inability to get capital. SBA loans while well intended wereinsufficient, plus the paperwork was an added burden. The Tax Benefit Exchangeproposal puts the power in the hands of small businesses to quickly obtain private capitalto reduce the cost of obtaining new equipment or fund working capital.As you know, a form of this proposal was enacted in 1981 in the Economic Recovery Act of1981. President Reagan had just won the election in part because of the severe recessionin 1980 which had unemployment rates similar to the rates today. While I do not haveempirical data to support it, anecdotal evidence supports the sale of tax benefits as a wayto increase GDP and increase employment. I worked on many transactions involving thesale of tax benefits in 1981 and 1982 until its repeal in 1983. The problem with the 1981law was that it was so complex that only large corporations like Union CarbideCorporation could benefit under a cost-benefit analysis.In short, the Tax Benefit Exchange gives small business the power to partially fund theircapital needs using private capital with no additional cost to the US treasury. The USgovernment only needs to be an enabler to permit the sale of new depreciation deductions.Let the market efficiently help small businesses utilize the tax depreciation deductionsrecently enacted by Congress.I would welcome the opportunity to meet with you in Connecticut or Washington. Kindlyrespond to me via my cell 203/858-5186 with a date and time as soon as possible so we canjumpstart this small business, job creation solution with a tweak in the tax law.Respectfully,Ira Paul KleinEnclosure: 14 page proposal: Tax Benefit Exchangelaunched by http://the-5th-estate.com integrated by http://dpe.electronic-boardroom.com 6
  • 7. Letter to Congressman Larson and Senator Himes iklein@electronic-boardroom.com --------------------------------------------------------------------------------------------------------------------- March 7, 2011Honorable Jim Himes119 Cannon House Office BuildingWashington, DC 20515Honorable John Larson1501 Longworth House Office BuildingWashington, DC 20515 RE: How Small Businesses Can Get Private Capital and Create Jobs: Meeting Request to Propose Solution to House Ways and Means CommitteeDear Congressmen Himes and Larson:I write to you Mr. Himes, as my local Congressman, and to you Mr. Larson, as theConnecticut member of the House Ways and Means Committee. I am a Westport resident,former Senior Tax Counsel for Danbury’s Union Carbide / Dow Chemical and adjunctProfessor of tax law for MBA and CFP programs at Fairfield University. Further, as aqualified tax lawyer, JD BU Law and LLM in tax NYU Law, who previously worked for aWall Street law firm, I am not representing any client and have created the enclosed taxproposal pro bono. The US faces a serious job crisis and needs to explore solutions. Yet,my attempts at using standard social change platforms such as comments on articles orgovernment websites have resulted in responses like: continuously asking for donations,“no response” which is good for a venter, we’ll get back to you in 4-6 months, here is ourrepetitive newsletter which has nothing to do with the question you asked…My intent is to be constructive by: addressing Obama’s ongoing calls since 11/5/2010 for innovative ideas directed at small businesses which account for 70% of all new private sector jobs; creating, focusing and shortening a feedback loop from expert solution providers to government decision makers in order to solve the US job problem.I have drafted a deficit neutral, bipartisan flow process to help US small businessesobtain private capital and hence grow their business and employ US workers. I enclose acopy of the proposal: “Tax Benefit Exchange: How Small Businesses Can Get PrivateCapital and Create Jobs.” The tax proposal is contained in the first 5 pages. The taxproposal is also an application of a social change platform for public initiatives.My wife, June Klein, developed a “distributed public expertise” web site in associationwith the Oxford Internet Institute, Oxford University UK, to post fresh ideas to solvegovernment problems and recently won a small business award from British Airways. Atthe British Airways London event honoring global entrepreneurial winners, Lord StephenGreene the UK Minister for Trade and Investment requested the Tax Benefit Exchangeproposal and is evaluating it as a way to increase small business growth and decrease UKunemployment. 7
  • 8. The Tax Benefit Exchange proposal allows a small business to sell its Section 1245depreciation on newly purchased equipment to any other US taxpayer. The sales pricewould be at a market price determined on a bid and asked basis. Private capital, withoutpublic funds, would be used to create the Tax Benefit Exchange. There would be nosecondary market to avoid complexities in enforcement. Thus, private capital would beused to partially fund small business growth and private employment. Such a privatemarketplace enables small businesses to monetize currently any unused new depreciationtax benefits encouraged by Congress. Since the depreciation deduction is already in thelaw and scored by the CBO, no increase in the deficit would occur. The Tax BenefitExchange proposal more efficiently uses the depreciation tax benefit already enacted byCongress.The IRS administration of the sale of depreciation deductions would require a simpleform similar to Form 8023 which allows for the election of Section 338(h)(10). The buyerand seller would each sign the form with their names, addresses and tax ID numbers andattach it to their returns. The tax basis of the asset for which the depreciation is soldwould be zero while the book basis remains unchanged.At the conference in London, UK attended by many US small businesses and start ups,the common theme was their inability to get capital. SBA loans while well intended wereinsufficient, plus the paperwork was an added burden. The Tax Benefit Exchangeproposal puts the power in the hands of small businesses to quickly obtain private capitalto reduce the cost of obtaining new equipment or fund working capital.As you both know, a form of this proposal was enacted in 1981 in the Economic RecoveryAct of 1981. President Reagan had just won the election in part because of the severerecession in 1980 which had unemployment rates similar to the rates today. While I donot have empirical data to support it, anecdotal evidence supports the sale of tax benefitsas a way to increase GDP and increase employment. I worked on many transactionsinvolving the sale of tax benefits in 1981 and 1982 until its repeal in 1983. The problemwith the 1981 law was that it was so complex that only large corporations like UnionCarbide Corporation could benefit under a cost-benefit analysis.In short, the Tax Benefit Exchange gives small business the power to partially fund theircapital needs using private capital with no additional cost to the US treasury. The USgovernment only needs to be an enabler to permit the sale of new depreciation deductions.Let the market efficiently help small businesses utilize the tax depreciation deductionsrecently enacted by Congress.I would welcome the opportunity to meet with either of you in Connecticut orWashington. Kindly respond to me via my cell 203/858-5186 with a date and time as soonas possible so we can jumpstart this small business, job creation solution with a tweak inthe tax law.Respectfully,Ira Paul KleinEnclosure: 14 page proposal: Tax Benefit Exchangelaunched by http://the-5th-estate.com integrated by http://dpe.electronic-boardroom.com 8
  • 9. RESPONSE FROM CONGRESSMAN JIM HIMES OF CT: June 27, 2011Dear Mrs. Klein,Thank you for sending me your thoughts and a copy of your published research on jumpstarting the American economyand creating American jobs. I appreciate your comments and am grateful that you took the time to contact me.I believe that in these difficult economic times, all ideas must be on the table. Your proposal to allow businesses to sellunused tax credits to other businesses to fund capital investments is quite interesting, and I am grateful that thoughtfulconstituents such as yourself are taking the President up on his offer to hear ideas that could stimulate this countryseconomic growth and create private sector jobs.If you have any additional questions regarding this or other issues, please do not hesitate to contact my office. You cansign up for my newsletter and find more information on my views and my work in Congress by visiting my officialwebsite at himes.house.gov.Sincerely,Jim HimesMember of Congress 9
  • 10. TO: The Honorable Dave Camp, Chairman House Ways & Means CommitteeFROM: June Klein, CEO and Ira Klein, General Tax Counsel of Technology & Marketing Ventures Inc. jklein@tmv.com T: 212.628.2178 fax:212.744.2089 C: 917.601.2444 ______________via FAX TO: 202/225-9679 Date: June 9, 2011___________________________ JOB GROWTH SOLUTION FOR HOUSE WAYS & MEANS COMMITTEE USING PRIVATE CAPITAL The single biggest problem facing our country today is the lack of job growth by small businesses. Economists almost uniformly agree how to create new US jobs. 1. New jobs must come from the private sector; 67% of all new jobs come from small businesses. 2. Banks must increase the flow of capital to small businesses. Banks have decreased their lending to small businesses. 3. Tax incentives add more revenue to the US treasury than they cost. 4. Tax incentives and tax “rebates” to small businesses are needed to allow small businesses to start up new businesses and expand existing small businesses. Above is what is needed to create US jobs and below outlines the solution to making it happen. TMVi Tax Benefit Exchange™ creates incentives set forth by economists to create new small business jobs. 1. The sale of new depreciation deductions by small businesses to private third parties act as a cash rebate for new and existing small businesses. However, the cash rebate comes from private capital not the government. 2. The cash rebate through the sale of new depreciation deductions can be assigned to the bank financing the acquisition of new equipment thereby reducing the outstanding indebtedness to the bank. This structure would increase the free flow of capital to small businesses by assigning a “cash” asset to the lending bank. 3. TMVi Tax Benefit Exchange™ does not require a new tax incentive; it only requires a change in the tax law to allow small businesses the ability to sell an existing tax incentive. The existing tax incentive to be sold is the depreciation deduction currently allowed to small businesses for newly purchased equipment. The sale of tax depreciation for new equipment would be sold at FMV on a bid and asked basis. This sale of depreciation deductions would enable small businesses to monetize new tax depreciation deductions it cannot currently use. This private capital can be used to reduce debt, expand the business, maintain or hire new employees. Since current tax depreciation is an existing tax incentive already scored by the CBO, there is no increase in the deficit. Quite to the contrary, increasing small business opportunities, employment and growth will increase GDP and US treasury revenue. 4. The genesis of this idea that tax incentives can be sold has its roots in the Reagan administration tax proposals in 1982-1983. During this period, unemployment approached 10% similar to the unemployment rate that exists today. Anecdotal evidence in 1984 supports the notion that the sale of tax benefits will increase employment and increase tax revenue for the US treasury. 5. TMVi Tax Benefit Exchange™ proposal was the feature article in Crain’s New York Business dated May 9, 2011. Please click on this link for online version or Google “Crains June Klein” http://crainsnewyork.com/article/20110508/SMALLBIZ/305089992 6. A more detailed explanation of TMVi Tax Benefit Exchange™ proposal is available upon request from you or your staff. What is needed in order for you to propose this to your committee? 10
  • 11. FREQUENTLY ASKED QUESTIONSQ1. What is the Tax Benefit Exchange (TBE)? A. The TBE is an online exchange which matches sellers and buyers of new depreciation deductions. The sellers are small businesses and start-ups that buy new equipment but cannot currently use the new depreciation deduction. The buyers are US business taxpayers who use private capital to buy the seller’s new depreciation deductions. Such buyers reduce their US income tax liability by buying the new depreciation deductions from the small business/start-up sellers. The price for the new depreciation deductions is FMV determined on a bid and asked basis.Q2. Will the TBE increase the US government’s deficit?A. No. The TBE uses existing depreciation deductions already scored (calculated) by the Congressional Budget Office. In fact, the TBE is expected to reduce the deficit by stimulating small business growth, employment and revenue by the 1.6 economic multiplier effect.Q3. Will the TBE require the use of government money? A. No. Private capital alone is used to buy the new depreciation deductions from small businesses/start-ups. Existing tax laws allowing depreciation for new equipment are used; no new tax incentives are required from the US government. Only a small change in the tax law allowing the sale of new depreciation deductions under current tax law is required.Q4. Will the TBE increase US gross domestic product (GDP)? A. Yes. The TBE allows small businesses/start-ups to monetize (receive cash for) its new depreciation deductions they currently cannot use. These funds are used to i) reduce debt of equipment purchased, ii) provide working capital, iii) expand or maintain existing business and/or iv) hire new employees. The use of the funds in these activities increases GDP.Q5. Will the TBE increase US employment? A. Yes. As small businesses grow and start-ups appear, US employment increases. Since approximately 70% of all new private sector employment comes from small businesses and start- ups, the TBE will directly and favorably increase US employment.Q6. How will the TBE be administered by the Internal Revenue Service (IRS)? A The TBE will send a 1099 form for every transaction to the IRS, seller and buyer. Further, the IRS will create a one page form to be signed by the seller and buyer. The form contains i) description of the property whose depreciation is being sold, ii) a copy of the purchase order for the equipment iii) addresses of the seller and buyer, and iv) the tax ID numbers for the seller and buyer. Both seller and the buyer must attach a copy of this new one page form to their respective tax returns for the year of the sale of new depreciation deductions. 11
  • 12. Q7. Will the seller have to report gain or loss on the sale of new depreciation deductions? A. No. Since the seller is not selling the property, it will not report gain or loss on the transaction. However, the seller will make a basis adjustment to zero as if the asset is fully depreciated for tax purposes. Gain, loss, recapture would then follow existing tax rules. There is no change of cost basis for book purposes.Q8. Why isn’t the use of the proceeds strictly tied to job creation? A. There are already a small amount of credits linked directly to increases in employment which have not worked. A few years ago, Congress passed a one-time repatriation of foreign earnings at 8% if the money was used to increase jobs and this legislation was a failure for various reasons. On the other hand, the reason the 1982-1983 tax benefit sale legislation was so successful was that it did not limit the use of the funds received on the sale. Jobs come from small businesses and businesses supplying equipment to small businesses. Small businesses should decide where to use the money instead of government micro managing the small business. If business expands, they will employ more people. Q9. Why not tie small businesses’ ability to sell their tax depreciation deductions based on the salaries of employees hired with funds gained from the auction? A. Limiting the sale of depreciation deductions to reinvestment in jobs is difficult for the IRS to administer. Tracing the funds received on the sale of depreciation deductions to see if jobs are created would require a significant increase in the IRS’s budget to avoid the prospect of fraud. In addition, the tying of salaries to deductions would result in an auction process that would create uncertainty in the mind of the buyer. Thus, the buyer either would (i) not buy or (ii) require an indemnity from a small business which is not practical or (iii) require a substantial discount from the seller thereby making the sale uneconomical for the seller.Q10. What is the next step to implement the TBE? When will it happen? A. Congress must change the tax law to permit the sale of new depreciation deductions. Currently, Rep. Dave Camp of Michigan, Sen. Kirsten Gillibrand of New York, Reps. John Larson and Jim Himes of Connecticut have reviewed the proposal and are working on getting the proposal on the table. In fact Rep. Jim Himes has written on June 27, 2011, “I believe that in these difficult economic times, all ideas must be on the table. Your proposal to allow businesses to sell unused tax credits [deductions] to other businesses to fund capital investments is quite interesting…” Favorable press includes Crains New York Business and other publications. We are creating an internet movement to push the House Ways and Means Committee and the Senate Finance Committee to implement this novel approach to jump start the small business economy and increase US employment. Also driving this tax law change is the 2012 election campaign which is demanding real job solutions. We expect passed legislation by November 2012. The TMVi Tax Benefit Exchange is ready to go right now. 12
  • 13. Electronic Venture Game Changers Series:Formulas to Capitalize on The 5th Estate Megatrend June KleinJune Klein, Chair of The 5th Estate Innovators…10 Leaders that expand upon OxfordInternet Research to Solve Global Problems This research report by the Director of the Oxford Internet Institute outlines 8 strategies to enable citizen experts to solve public policy problems. Expanding upon the Oxford Internet recommendations above, this ebook describes an application launched on the-5th-estate.com social change platform. The CEO & General Counsel of Technology & Marketing Ventures Inc presented this solution at Oxford Said and to the UK Minister of Finance. US Senator Gillebrand (NY) is reviewing it. Crains Business NY is writing an article describing how small businesses will be empowered by monetizing their unused depreciation deductions. This will enable entrepreneurs to hire staff and jumpstart the economy without affecting the deficit. The 5th Estate Innovators are 10 firms that will build upon Oxford Internet Institute 5th estate Research. They will receive a trailer of the upcoming 5th estate book to be published by Oxford University Press in 2012 and they will be included in a 5th estate groundbreaking event. With this grounding, the 5th Estate Innovators can start creating Next Practices. This is in contrast to emulating Best Practices that are a step behind a rapidly evolving world. Contact June Klein jklein@tmv.com 13