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Abstract

It is abundantly clear to those in the press and on Capitol Hill that the provisions of the new Tax Reform Act of 19862 will constitute the death knell for tax shelters. The text of the Congressional Record and pages of business, financial journals and newspapers for months prior to the Act's enactment were filled with commentary as to this doomsday effect. However, a prudent reviewer of the actual tax-sheltering provisions of the Act would be far less certain in his estimation of their overall and lasting effect. Even though the so called elimination of tax shelters has been hailed in many circles as a "victory," one might want to question first, whether the Tax Reform Act of 1986 will achieve total elimination of tax shelters, and, if so, whether pursuant to public policy the Act will produce an irrefutably desirable end.

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