Professor Elam

Jack Kemp makes some observations about the US Dollar and our tax policy.  He comes down for big time tax changes and a stronger dollar.  Steve Forbes also has a column on the danger of a weak dollar. (see forbes.com under opinions) Steve points out that it may take another stock market crash to convince Washington of the foly of a weak dollar. Indeed one of the apparent causes of the 1987 stock crash was then Secy Treasury Baker’s staement that if Germany did not boost interest rates, he would just let the dollar fall. Indeed as Kemp and Forbes point out, one can have low interest rates but it takes a strong currency. That way investors are not uneasy about parking their money in a stable currency.

We re discussing the need for retrospective changes in depreciation in Intermed II today. Most of such changes result from trying to advantage the enormously comlex US Tax Code. What if the tax code disappeared? Think how many accounting problems would disappear. Oddly professional accountants do not take positions on the tax code or the dolar in Presidential elections. Come to think of it, so far the canddates have not had much to say about it either.  The election should be more than a Sat Night Live skit but a serious policy discussion. Oh well…..