September 1, 1993 After the blizzard of press reports, we know you`re ready for a bit of plain talk about the new tax law. The truth is, there probably will be some pain for you in the new law (we`ll help you minimize it) and some gain (we`ll help you make the most of the new law`s breaks). The new law hits middle-and high-income people in a variety of ways. Many social security recipients will be hit with higher taxes. But there are many ways to cushion the blow or avoid it entirely. For example, shifting income to lower-taxed family members can cut your family`s overall exposure to higher taxes. Moving income to a future year can also work. And because the tax on long-term capital gains may be about 30% lower than the tax on other types of income, new investment strategies may be in order. Some of the pluses: Taxpayers get much-needed relief from an onerous estimated tax rule, the excise tax on luxury items other than cars is repealed, and the self-employed`s deduction for 25% of health insurance premiums is back. On the business side, both big corporations and personal service corporations are exposed to a higher income tax rate. Although there have been cutbacks in some areas, there are also substantial breaks for many small and medium-sized businesses and business owners. More machinery and equipment can be written off each year, there is some AMT relief for depreciation, and, for the first time ever, there are writeoffs for the cost of "goodwill" and other similar intangibles purchased with the assets of a business. There`s not much that we can do about higher energy taxes. But we can guide you through the intricacies of a tax law that has many surprises-good and bad-tucked away in the fine print: a sneaky rule that could mean lower retirement plan contributions for some, much-needed tax relief when certain real estate loans are reduced, entirely new AMT calculations, and tougher moving-expense and travel and entertainment deduction rules, just to name a few. We`re here to help you make the best of the new tax law. Because many of the new rules are already in effect, the time to act is now. Give us a call and we`ll get to work on the best strategy for you, your family, your business, and your investments.