Few Tax Reforms Expected from Candidates

By Lewis, Constance | THE JOURNAL RECORD, August 19, 1988 | Go to article overview

Few Tax Reforms Expected from Candidates


Lewis, Constance, THE JOURNAL RECORD


For the real estate industry, beset with tax law changes, uncertainties of interest rates and high vacancy rates - problems which have only been compounded in the oil depressed regions of the Southwest - only one thing is certain:

There will be no additional tax law changes until after the presidential election in November.

"But what can we expect after a new president is elected?" questions James B. Werle, a tax and development specialist with the international accounting firm of Arthur Young & Co., which has an Oklahoma City office.

Examining the party planks of George Bush and Michael Dukakis, Werle sees no push for tax reforms or incentives that will help the real estate industry. But both candidates "appear to have indicated at least moderate support for real estate's `social credits' - low-income housing and historic rehabilitation credits," he said.

"In order to initiate new programs or incentives, something else will necessarily have to be taken away," he said, explaining that the candidates, whose chief concern is balancing the budget, are hard put to advocate tax reform measures that would require some form of governmental support.

The concern for low-cost, adequate housing and historic rehabilitation credits is a response to public pressure, he said.

Dukakis has selected "affordability of quality housing" as a plank in his party's platform, indicating he would redirect defense spending to fund programs, said Werle.

"Dukakis looks to the success of his home state in combining the efforts of developers, trade unions and other members of the private sector in programs with local government as a means of succeeding in achieving this goal," he said.

But while the availability of low income housing is one of Bush's platform planks, he has "not said word one" as to how he would accomplish that aim, Werle said from Arthur Young's Florida offices during a telephone interview on the second day of the Republican convention.

"Bush has mentioned nothing in the way of affirmative action (he would take)," Werle added. "So, I think we can expect his posture to reflect the status quo of the Reagan administration."

Werle, himself a Republican, said he nevertheless saw the party using "mom and apple pie" rhetoric and not attacking the specifics of many issues, including real estate.

However, in crediting Dukakis with a concern for the rising cost of constructing new homes, increases in rental rates and the building industry's emphasis on "upper end luxury" homes in the majority of states, Werle also pointed out that Dukakis is not making promises he can't keep.

"Dukakis has learned from prior gubernatorial races that promises are hard to keep and, therefore, is making few," said Werle. "His programs are moderate and do not commit to increased taxes or large spending programs."

Citing the possibilities that could occur if Dukakis enters the White House, Werle said, "look to incentive programs for the lower end of the residential real estate market (both multi-family and single family) and status quo for the remainder of the market."

In the telephone interview, Werle also predicted that the influence of Jesse Jackson will weigh heavily in low income housing since that is one of "visionary" Jackson's favorite issues, and the Democrats "will make concessions to him" in lieu of not nominating him to the vice presidenial candidacy.

"If Bush is elected," Werle said, "expect him to pick up on Reagan's recent statement that he wants to see a reduced capital gains rate.

"Since it is likely Bush would have a Democratic Congress, tax proposals for rate increases, changes in depreciation systems and interest deductions and additional tightening of the passive loss rules, can be expected with strong opposition for the rate provisions of such proposals. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Few Tax Reforms Expected from Candidates
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.