- 67 -
discriminate between individuals doing business as
proprietorships and in corporate form. Granted, section 163(h)
applies only to individuals. Congress has been of two minds as
to the deductibility of Federal income taxes, and perhaps the
distinction reflects some residual ambiguity. Perhaps Congress
views corporate deficiency interest as properly an investment
expense of shareholders. We do not know. In any event, the
majority has not convinced me that the inconsistency is
unconstitutional.
E. Conclusion
Again, the temporary regulations in question, section 1.163-
8T and 9T, Temporary Income Tax Regs., resolve ambiguities and
fill gaps in the statute in a permissible fashion, and for that
reason, must be upheld. NationsBank v. Variable Annuity Life
Ins. Co., 513 U.S. __, 115 S. Ct. at 813-814.
I would hold for respondent.
HAMBLEN, COHEN, WHALEN, and BEGHE, JJ., agree with this
dissent.
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