CBS Evening News for Wednesday, Nov 05, 1975
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(Studio) Report on House Ways and Means Committee's tax reform with regard to tax shelters.
REPORTER: Walter Cronkite
(NYC) Atlanta Falcons football team, jet liner, office building, beef on hoof, oil drilling and movies like "Shampoo" and "Funny Lady" are all tax shelters. Investor can say he had business expense with regard to investment when he really didn't spend his own money. Leverage is spending someone else's money but saying it's yours. Artificial bookkeeping is spending no money, but getting tax credit. Tax shelters subtracted from income tax equals no taxable income. Oil and farm shelters described. In Tower One office building in Chattanooga, Tennessee (shown), investors pay $2.5 million and borrow $12 million. In 3 years, depreciation claim to be $2.7 million. Oil wells can still be used as shelters. Committee dilutes reforms to get rid of real estate shelter. [Representative Abner MIKVA - says original reform bill was good. Loopholes now open again.] [National Realty. Commission Alan ARONSOHN - says changes would mean less construction and fewer construction jobs, higher costs and rents.] Proposed reforms can still be strengthened or diluted.
REPORTER: Robert Schakne