Miscellaneous
tax changes reported to be part of the package include several priorities of the
business community, including: a favorable change in how the securities industry allocates its
receipts for tax purposes, from the address of the firm to the address of the customer; an updating of a sales
tax exemption
for capital purchases by the telecommunications industry; a reduction in the ton - mileage
tax; a rate reduction
for small
businesses; and creation of an investment
tax credit
for the securities arms of insurance companies.
It stated, ``... the IRS will not assert that any taxpayer has understated his federal
tax liability by reason of the
receipt or personal use of frequent flyer miles or other in - kind promotional benefits attributable to the taxpayer's
business or official travel... This relief does not apply to travel or other promotional benefits that are converted to cash, to compensation that is paid in the form of travel or other promotional benefits, or in other circumstances where these benefits are used
for tax avoidance
purposes.»